Inside the AI Garage Powering the Real World

[00:00] Applied intuition. Applied intuition. What does applied intuition do? We have defense, we have auto, we have trucking, we have mining, we have agriculture, we're on the sea. It's like, what the hell? [00:30] you [00:32] Kasser and Peter [00:34] We are here at the Physical AI Day. Yes. [00:38] And you're going to show us around [00:39] I guess you call this a garage? Yeah, this is actually... [00:42] it looks really nice today but it's actually a working garage you have a couple of large garages that we do all of our [00:48] you know, all of our work in working with both physical vehicles and obviously testing and all of that stuff. But yeah, this is the garage. [00:54] It's the only place we wear our shoes. Yeah. I saw that. There's a station over there. Everybody's shoes are in cubbies. Yeah, yeah, yeah. That's from the early days in the company. We've been doing it for a long time. Now, also to give credit where credit's due. [01:06] I think Gusto also did this in parallel. [01:09] But I'm not sure they still do it. But yeah, we were in a house when we started the company. And we literally had people, including Peter, living in the house. [01:19] And then probably a year is when we actually got our first office and we're like, [01:23] let's keep the cleanliness going. And also, [01:26] lived in Japan and in the office in Japan you take off like your clothes and you have like a uniform a work uniform and then you have your you know work shoes. What are we going to get

[01:36] some applied intuition work wear? We have work wear already, but we don't force everybody to wear it all the time. But if you go to Japan and you go to like Honda, [01:46] every employee is wearing like [01:48] the same. [01:50] uniform engineers and then they're wearing a flat 80s hat that says hand on it it's fantastic i feel like if we do that and we start doing like calisthenics in the morning i have it's not it's gonna be a little too off-brand for silicon valley you'll only fully appreciate that have you been to japan yeah yeah it's all true it's all true yeah and it's fun yeah okay so we're here in the auto center oh yeah big sign let's talk about this so today uh we had our first ever physical ai day [02:16] uh historically we've never invited people in to our garages and things like that uh and so when we thought about okay [02:23] Now, how do we show what we're doing? We have all these different sections, and this just highlights a little bit of what we do in automotive. All of our major product lines are also available in automotive, so that means the, let's say, the developer tooling you would use to write software and deploy it onto vehicles, that's one of our products. [02:40] vehicle operating system that abstracts hardware and software away from you know from each other kind of like you'd have on a laptop or on a phone that type of operating system is also something we do in automotive and then of course [02:51] self-driving. We do self-driving in automotive and we do it from [02:54] L2++ all the way to full autonomy. [02:57] But yeah, this is the auto section. And if you look behind you, you'll see kind of the guts of a car. Peter, you want to talk about this a little bit? Yeah, so here we're just showing this is a production vehicle that's disassembled and just has all of its electronics laid out. Hence it says before. A traditional vehicle, exactly. And you can see just the mass of complexity and wires. This is really what a car is in the guts of the car. It looks like a mess.

[03:27] For the astute viewer, you'll see all of these cables and you're like, why do you have so much wiring harness when, you know, typically it can be much more simple. That's a real legacy of the existing supply chain. [03:42] If you're a company that sells, let's say, [03:44] backup camera you're not only gonna sell the backup camera you're gonna sell all the wiring that goes to some compute [03:49] And then you have to do that for the windows that go up down the sunroof. And that's why all this is complex. But in the after, what we do is we actually [03:58] take all of that compute that's disparate around the vehicle into essentially a contained one box. It's not precisely a one box, but for all intents and purposes it is. And then you can run [04:10] very few cables to that one box and that box has higher performance compute in it and has all the signals from the vehicle so then you can do really interesting things and including just abstracting hardware and software away from each other. [04:23] which allows then developers to develop apps for the vehicle in a way that you would like to [04:28] for a laptop or for a phone. [04:30] And so making a vehicle with an old architecture fully autonomous is a lot harder than doing that on a modern architecture. And so when we're working with our customers, one of the goals is, well, you want to modernize and simplify the architecture, and then you can add autonomy and all of the AI capabilities on top of it. [04:46] And so who are some of your customers you're working with that are now modernizing their vehicles? [04:51] Yes, earlier today in our presentation, we talked about Solanus as one of those customers. And there's a bunch of others globally as well. There's different amounts of things that we're allowed to say about them because we are in the background. Yeah, we're in the background a lot. And the companies obviously compete against each other. And this is like a part of their business as well. Of the top 20 global automakers, 18 are our customers.

[05:21] from just tooling to the full operating system to intelligent cabin to autonomy. [05:28] And so what's the difference if something goes wrong in an old car versus something goes wrong in one of these? [05:35] So in an old car, right, you might have, let's say, an airbag sensor or something. I used to work in airbags. My first job as an engineer. And maybe you get like a little icon on the dashboard that you don't really know what it means. And maybe you're looking at the manual like, okay, what's the problem here? And on a modern car, you can have a much more sophisticated diagnostic system, a much more sophisticated way of servicing the information to the user. [06:02] And then also with AI, we can also then surface that to the manufacturer, and they can understand across their entire fleet, [06:09] what are the sort of the aggregation of the problems that they're having and root cause those things. And I think we won't necessarily go into the deep details, but these are some of our [06:17] R&D and showcase vehicles. And the middle vehicle here is a showcase vehicle for what's called our vehicle operating system. And then this is a self-driving vehicle. This can drive on an urban environments and highways, it can park itself and [06:32] It's a demonstration. Maybe we talk a little bit about what's our approach. Yeah, so we started in 2017 initially [06:38] building simulators which were used for developing self-driving technology and we sold the simulators to the whole industry and then a few years later we really got deep into building the technology ourselves and uh and what's what's uh unique now is right we're able to use what's called end-to-end technology so we can take raw sensor data in and actually put out vehicle control signals and then we have a large-scale data collection across a bunch of industries so not only automotive but also

[07:06] trucking and mining, construction, and we can combine all of these, all of this data together to create these self-driving models. [07:13] Yeah, I think the thing that's maybe less obvious, yeah, is that, [07:19] Actually, you know, what this vehicle does and, you know, what we see in like, [07:24] that boat over there and the cars that you saw and the trucks that we have, [07:30] They're actually fundamentally the same thing because they're machines that interact with the real world. And so there's [07:36] you know, physics is consistent. [07:38] And so we've built a platform that can run across all of these different industries and bring that same level of like, for the lack of a better word, Tesla-fication to a machine like this, which is self-driving, intelligent, easy to work with. [07:54] um yeah that's so the same operating system and platform really runs across all these vehicle types so like literally on this tractor and then uh over here if you take a look there this is actually uh we're showing re in real time we have actual construction and mining equipment doing autonomous operations at our test site yeah this is being streamed in this is real this is real yeah these are real time video feeds yeah [08:17] Let's see what he picks up. Yeah. So this is what we're doing. What's called a load haul dump cycle, which is basically the movement of Earth. And this is all happening autonomously. And these operators [08:28] I can can control a whole fleet of vehicles remotely here. [08:33] So what does this mean for the future of industrial work? How many people will be actually on site? So the future of mining and eventually construction is going to be these fully autonomous operations where labor shortage is a real problem in the industry. And so this allows a very small number of people to control a huge number of vehicles.

[08:54] Yeah, I think, you know, the... [08:56] AI kind of [08:58] problem and consternation and heartache and uh [09:02] uh kind of hand-wringing that exists that's existing right now with what happens with white-collar workers with these [09:09] super intelligent agents that are running and what's going to happen to jobs. [09:13] It's quite difficult in the physical AI community because [09:17] farmers are aging. [09:20] people don't want to work in mines in faraway places these are dangerous jobs and so [09:26] AI really in these industries is being kind of pulled out of our hands because [09:32] they're real problems that they're dealing with and technology can help solve those problems, whether it's labor shortages or safety or whatever it might be. [09:40] A lot of people talk about the negatives. Yeah. AI. Absolutely. But this is. [09:45] Yeah, it's obviously a positive. Yeah. Yeah. And because I mean, the reality is, you know, there's not a new group of, you know, people who are really want to become farmers. Yeah. It's just it's just not there. There's only so much propaganda we can put on X for that. Yeah. Yeah, exactly. Exactly. [10:03] All right, it's a little bit darker in here. Yes, it is. [10:06] Where are we now? So what is this Peter? Yeah so this is what's called applied edge. This is our [10:12] mobile command center. And so all of the development tools and infrastructure that we are typically able to use [10:21] to build interesting defense technologies at say in an office environment. All of that is packaged up and can run

[10:28] completely offline, off the grid. [10:32] shipping container. Exactly. So this can be transported on a C-130. It can be transported [10:37] on a ship, [10:40] It's a standard container which is easy to move and it's fully self-sufficient. So it has its own power, has its own cooling, and it has all of the software and server technology all built right in for operations. And here we're actually showing a real operation. We have actual boats out in the ocean, which we are remotely controlling and doing patrol operation. [11:01] Does it come with the people in it? Yeah. [11:05] They're laughing, but they don't want to look back. They don't want to look back. They're back. [11:10] She's been controlling this boat for probably a couple of hours, just going in circles. [11:15] But yeah, it's a real boat being really controlled. Really cool. Sorcery is brought to you by Brex, the financial stack trusted by more than 30,000 companies, including one in three venture-backed startups in the U.S. Nearly 40% of startups fail because they run out of cash. Brex is literally built to help founders avoid that. Unlike traditional banks that let your money sit idle, chipping away at it with fees, [11:40] smarter and move faster. Their all-in-one solution combines checking, treasury, and FDIC protection into one powerful account. You can send and receive money globally at lightning speeds, get 20 times the standard FDIC coverage through their partner banks, and even high yield from day one. With same day and even same hour liquidity, access your funds anytime. Companies like Scale

[12:10] cloud, trust and use Brex. Start today at brex.com slash sorcery. That's B-R-E-X dot com slash sorcery. Turing is training the next generation of AI with tasks that require real expertise and real world judgment. That's why companies like NVIDIA, Anthropic, Salesforce, and Gemini partner with Turing. Turing builds realistic reinforcement learning environments and data [12:40] Frontier Labs need to train superintelligence. Visit turing.com slash S-O-U-R-C-E-R-Y. [12:48] So this is kind of our defense area. When did you guys get into defense? We originally got into defense pretty early, actually, like 2018, 2019, somewhere out there. So pretty early in the company's history. Our work in defense accelerated when we acquired a company called Episci. This was about now two years ago. Yeah, yeah. Something like that. But yeah, we work with all the major branches of the military. We also work with primes. There's projects we sub on. [13:18] us on, but we're really everywhere in the defense ecosystem in the U.S. [13:22] This is a Ford Raptor, an F-150 Raptor. So it's a rugged off-road vehicle. We use this actually as our development vehicle for our off-road autonomy stack. And we also do some really interesting production applications of this. So recently we showed a collaboration with Sierra Nevada Corporation where we actually had like an anti-drone missile launcher on the back of one of these trucks.

[13:44] Yeah, what's roughly happened in defense is if you're using... [13:48] commercial technologies like a ford f-150 those are also very dangerous because they're not actually made for combat [13:55] and so then putting humans in there becomes is that a normal thing that's normal no it's something that's new within the administration which is let's use lower cost products um but [14:06] then you don't put people in them. And they can run autonomously out to the battlefield. And that's actually just in terms of, [14:13] you know, affordable masks, that is the right strategy. That's a correct strategy. And I think that age of [14:20] really expensive monolithic systems, I think, is gone. I think our dual use strategy and it's truly a dual use strategy in the sense of we are taking commercially available [14:31] products which we sell in all these other verticals and we're also selling them in defense and we're optimizing for the defense use cases. But we can frankly deploy [14:41] you know, more robust systems because they're already in field and in production for a fraction of the cost that actually get the same mission accomplished. I think one way to think about this in defense is imagine if the. [14:53] Department of War said, let's [14:55] Let's build a, [14:57] you know, a chat app. [14:58] How long and how many dollars would it take [15:01] to compete with WhatsApp. [15:03] or signal or something like that. This is extremely difficult. So there are real advantages in the commercial ecosystem. [15:10] We get disciplined. [15:11] by the commercial side of the business. Because we have to compete against everybody. We have to compete against the low cost vendors, all the way to the high cost vendors in the West, in the East, everywhere. And because of that, our technology has to be the best. It can't be just the best that's selling to the DOW.

[15:26] has to be the best in the world and then also the best selling to the dow [15:31] Yeah. [15:32] And this is an autonomous boat. It's actually the same kind of boat that we actually have in the ocean right now. And we're showing in that command control center. It's not this one with like some AI or something. That's a real boat. We have a fleet of these. But obviously this is unarmed in this setting, but there's a lot you can do with this kind of vessel. [15:49] Yeah. [15:51] Should we keep moving to the other areas? [15:54] Yeah. [15:55] Thank you. [15:58] Yeah, let's take a quick peek outside and then head back in. Oh, should we go to the big mining truck? [16:06] All right, how are we going to get there? Are we going through? We'll go through this way. Okay. Yeah, before it gets dark. Yeah, before it gets dark. [16:16] Thank you. [16:19] What's most surprising to you? [16:21] For this? Yeah, as you walk around. [16:23] Honestly, I just think it's kind of crazy. You guys have been under the radar for so long and then you open up the garage doors and it's like, we have defense, we have, we have trucking, we have mining, we have agriculture, we're on the sea. It's like, what the? How did that? When? Okay. It's a real company. Look at these guys getting their, he's actually our first, he's our first employee and he's, he's, he's back seeing, he's, I think, I think he's really looking at this as like, should I, should I, should I really bank on this stock for the rest of my life? I think he's going to. [16:53] They're doing self-driving car rides so you can get driven around town. Oh fun.

[16:58] All right, look at this. [17:00] Beast. [17:01] big. [17:02] Yeah. [17:02] - Yeah, so this is a Komatsu truck. So funny enough, you might think this looks like a big truck. This is actually a small truck. - Yeah, this is the smallest truck we could get in this parking lot, yeah. [17:12] So this is actually technically not even a mining truck. This is a construction truck. So we do work also in mining trucks, which are much, much larger than this. But yes, the same operating system and autonomy technology that we do in automotive and other fields. [17:28] We also put onto this kind of vehicle, [17:30] And yes, it's obviously super valuable in the industrial domain. [17:34] Yeah, what's going on over here? [17:36] Yes, this is an autonomous skid steer. [17:38] which is [17:40] uh an incredibly useful vehicle so you know if you're not in construction you might not be as familiar but skid steers [17:47] There's like a hundred different tools that can be placed on the front of these so they can do almost anything. [17:51] And a typical worksite will have a whole bunch of these things. And in this example, we're autonomously moving around pallets, but just [18:01] What you can do with this technology is almost unlimited. Once it's autonomous, you can do anything with it. [18:06] Yeah, yeah. And I think [18:08] the interoperability of our platform is really important because we can go from a mine [18:15] then, [18:16] you know to self-driving trucks which ultimately go to a port and we think automating all of that is [18:21] really where there's going to be a huge unlock in productivity. I think automating some of these individual machines is positive, but unlocking all of them and then them working together is really powerful. When do you think you're going to complete an end-to-end autonomous mission? Yeah, you know, we're on that path right now. I think, you know, we are working in queries and mines around the world. We have driverless trucks running in Japan right now. We obviously have

[18:51] you know, driverless cars as well. I think [18:54] Um, [18:56] in the near future in the near future yeah it's only a matter of time i think that we have like a a mine a road and a port and all connects and we have [19:04] We have automation in all three of those. [19:07] just recreating the industrial fabric of the world yeah absolutely absolutely [19:12] So let's walk around this way and we'll go into the trucking section. Yeah. So, um, [19:18] We have a public partnership with Isuzu. [19:22] which is one of the largest commercial [19:24] uh manufacturing manufacturer of vehicles in the world um they make [19:29] trucks among many things um and we've been automating these uh we run driverless trucks in japan right now um peter do you want to talk about our gen 2 vehicle we talked about gen 2 i mean you can look it's it's it's really nice it's uh refined this is basically one step before this is fully productionizable and so they will produce this this is being commercialized in in the next year which is super exciting [19:55] And Japan's an awesome market for self-driving trucks because [20:00] A very aging population. Yeah, and there's a big need for this. So it's sort of the, and there's also support from the government. So it's phenomenal. Yeah, exactly. Yeah. [20:08] What countries are you not working in? You guys have extreme global reach. We're not working in China. China is the only country that I think we probably won't be in [20:18] maybe ever, but certainly anytime soon. Sometimes people say that's because we do defense work.

[20:24] that's part of it um sometimes they say well you know [20:29] IP restrictions, that's part of it. But yeah, all of that combined equals we don't have, you know, we don't have a presence in China, but everywhere else we do. And [20:40] most of the areas of the world we already have some presence. [20:43] Our most recent kind of expansion has been Australia. We opened also in India and UK offices last year, about 18 sites globally. I think as we kind of look at the future, [20:55] Australia could be one of those countries where we're doing driverless trucks and we're doing a bunch of different ports and suddenly you have that full connection happening where that efficiency is unlocked in a real way. [21:07] But I think what I want to really do, and if we can do it, it's a little bit of our goal, is once we get into automating... [21:14] parts of ports, then we could go to a LATAM country. And we don't have anything in Latin America right now, so maybe a Brazil or [21:23] enter that region through mining. And so you can see we're kind of hopscotching like a board game throughout the planet. I think probably the furthest out is Africa. We don't have any business in Africa right now, but... [21:35] I think one day we'll get there. And then probably the closest is the Middle East. We're expanding into the Middle East basically in real time. [21:42] Which has been the fastest to adopt and expand? [21:46] Probably Japan. Our Japanese market has done well, which is also ironic or also interesting because lots of companies have said,

[21:55] that Japan is a brutally difficult market. So I think I lived in Japan. Our presence in Japan is a very local presence. It's not like we just took a bunch of Silicon Valley engineers and put them there. And then you have another difficult situation, which is, oh, you're going to hire Silicon Valley people. [22:13] In Japan, that's really difficult. The expansion in every one of these global offices is always kind of rate limited by [22:20] We take the folks that are in the Bay Area, [22:23] kind of for granted in the sense of they understand equity, they want to work in high growth startups. Like very few people would, you know, that are interested in applied intuition would also be excited about working at one of the large banks. [22:36] Whereas if you go abroad, [22:39] they really look at that the fang as like maybe a dream job [22:43] And so you're explaining the value of equity and the value of growth, things that you can offer as a young, small company that an older company can't. So that ends up being a little bit of a rate limiter. So we've managed to figure that out across lots of different countries. [22:59] How many employees are you at now? [23:01] Globally, we're at something like a little under 1,400. About 1,000 of those are engineers. [23:06] I think we are... [23:08] one of the largest physical AI companies on the planet. And then certainly in this form and fashion, there's I don't think there's anybody at our side. That's that's nice because it allows us [23:18] to tackle really ambitious projects like [23:21] It's hard enough to do self-driving trucks in the Bay Area. [23:24] Try doing self-driving trucks halfway around the world. That's actually a challenge. And we're doing that in multiple, you know, multiple regions.

[23:31] But yeah, it's a real scale company. And probably our biggest offices outside here are going to be [23:37] Japan, Tokyo, Munich, it's probably a battle between those two. [23:41] Yeah. [23:42] And domestically, it's Care, Sunnyvale and Detroit. [23:47] Because of obviously our automotive roots. And DC and... Yeah, we have offices. I actually have quite a few offices. Yeah, we have quite a few offices. Yeah, yeah. VCX by Fundrise. The public ticker for private tech. Allowing investors of all sizes to invest in venture capital. View the portfolio at getvcx.com. That's getvcx.com. Some of you may not have heard this yet, but our sponsor Public just launched something called Generated Assets. [24:17] investing in a way I've honestly never seen before. Here's how it works. You type in an idea like AI powered supply chain companies with positive free cash flow or defense tech companies growing revenue over 25% year over year. Publix AI then dispatches a swarm of agents that scan every single US stock, evaluates them, and instantly builds a custom index around your thesis. What really stands out is how clearly it explains why each stock is included. And before you invest, you can even backtest your [24:47] with real context, not just guessing. And beyond generated assets, Public lets you invest in stocks, bonds, options, crypto, all in one place. They'll even give you an uncapped 1% match when you transfer your investments over from another platform. If you want to build a portfolio that actually reflects your thesis, visit public.com slash sorcery, paid for by Public Investing. Full disclosures in the description.

[25:10] Enterprise AI runs on Merge, the AI infra platform for integrations, agent tooling, and model orchestration, so your teams ship product, not plumbing. [25:19] Mistral, Dropbox, and Drada already trust Merge and production. [25:23] Start building at merge.dev. Founders scale faster on Deal. Set up payroll for any country in minutes. Hire anyone anywhere. Get visas handled fast. And get back to building. Visit deal.com slash sorcery. That's D-E-E-L dot com slash sorcery. [25:42] What do you think about [25:44] the new competition and the new entrants that are coming with this, like, I guess, resurgence of the AI wave. How do you feel about the playing field now? [25:53] Yeah, I mean, in many ways, we're one of those folks. We really... [25:59] got the zeal and adopted self-driving kind of in a post-transformer universe in an end-to-end world. I think if you look at Waymo, Waymo used to be in self-driving trucks and then they closed that team down because the old way of building self-driving, those are two almost discrete systems. [26:18] different sensor placement, different vehicle type was enough [26:22] to make it actually distinct enough where they had two separate teams. Today, we have the same team, actually, that's self-driving on all these different form factors. We don't have this discrete team for these discrete form factors. So we're one of the entrants, for the lack of a better word. And I think it's been a huge...

[26:41] kind of tailwind for us, honestly. We've been able to build more efficiently both in terms of data and more efficiently both in terms of dollars and more efficiently in terms of people. Like, you can do a lot more today, [26:55] then you could [26:56] three or four years ago. And so I said for a long time, because we sold tools for self-driving, that the best time to start self-driving was like in 2022, 2023. And after you say that so many times, it's like, [27:09] If nobody wants this opportunity, we'll just pick it up as well and make it. And I think when we were so hesitant to get into the space, we really thought, [27:18] We don't want any perception of competition with our own customers, but [27:22] There's something important to clarify. [27:24] Competition is only when you're taking out of the same bucket. [27:27] Our customers are selling to consumers or businesses. We're selling to other manufacturers. So we're not a competitor in that way. [27:34] And frankly speaking, we haven't gotten any pushback, you know, after we've joined the industry from a, hey, we can offer you models, we can offer you the self-driving tech. But yeah, so... [27:45] We're one of the new entrants for lack of a better word. Yeah. [27:48] Peter, you were at Hill and Valley this year. [27:51] The theme was bits are out, atoms are in. At least Delian said that. And so how do you feel about, well, one, what was your experience at Hill and Valley? What was like the trend there, the theme, that kind of thing? And then how do you feel about, [28:05] Adams. [28:06] Yeah, it was my first time at Hill and Valley. So we do a divide and conquer. I did last year. I remember that. You went on a China Tyree. Yeah. Yes. Yes. Like they're tracking my cell phone. Yeah. I'm sure that is the case for a lot of people.

[28:22] I had a great time at the event. I mean, it's a really interesting just combination of people that they bring together all in the same place from our perspective. Right. [28:36] Thank you. [28:36] and really all branches of the military. So I got a chance to speak about the things that we're doing. For example, with the Navy, we do this thing called the Data Edge Collection Kit. So it's [28:45] basically a system to enable the Navy to do modern data collection for training their own AI models. [28:52] We do a ton of things with the Air Force and with the Army. We have some really, really good drone technology that's been now used and demonstrated in a bunch of things. [29:04] and [29:06] So I think we've been working at this for almost 10 years. And so this concept of like atoms is not new to us. Yeah. It's a bit of like a... Now people are naming their companies atoms. Yeah. Yeah. Yeah. I think what has changed... Or applied blank or blank intuition. Yeah. You know, I... I don't... I think... [29:25] they might have been inspired by something. [29:27] But, you know, [29:28] No hate to my fellow founders, applied materials existed before applied to a kid. And they're like three minutes from us. [29:36] Simultaneously, I think the space itself is becoming cooler, which is great. And also we're becoming more public. Molly just off camera rolled her eyes. [29:47] You guys seem cool. Got lots of vehicles. [29:52] But the thing is that this industry is really going to explode in the sense of,

[29:57] we're just getting started in so many areas. We talked about mining earlier today and only 1% of mines are autonomous. [30:06] So like a very dangerous job, very dangerous job. Yeah. The, the, [30:10] the salient statistic there is mining accounts for 8% of work-related deaths on the planet. [30:18] And, [30:19] It is nowhere near. There's a tiny, tiny industry relative to the amount of people that live on the planet. And the average American farmer is 58 years old? [30:29] which is sort of a crazy stat. Maybe it's a retirement job. Have we thought about that? [30:35] I think being from the Middle West, Carhartt and John Deere, I went to undergrad at this place called the General Motors Institute. And GMI, let's say, is not a liberal arts college. [30:49] It's not Brandeis or Pomona or something like this. The point though is really the only answer to these problems is we have to make better use of [30:59] And so we've been developing this tech now for a long time, and it has taken a while to finally get to this point of productionization. So this Gen 2 truck, this is many years in the making. And again, the fact that even this truck is not the final production version. There will be one more, which will be the full production version. But we're getting really close. And when we're there, it's going to be really... Yeah. And I think what I mean by our Detroit roots, we both are from there. [31:24] is frankly is we just know these industries emotionally when you when you go to a gmi and

[31:30] you're growing up in the business. When your father and grandfather work at General Motors, work the auto industry, [31:35] You just grow up in the business. And so [31:38] it's not new to us in that way. And so it's, I think, [31:43] What's new to us is they're [31:45] the technology that's new to everybody. [31:47] which is taking these really advanced AI systems and models and intelligence, and now putting them in these machines, which, [31:55] typically you don't associate with [31:58] cutting edge AI. [31:59] There's a man in this truck. Yes, there is. Yeah, absolutely. [32:03] Yeah, yeah. [32:04] Do we want to talk about this truck maybe? [32:08] It's our light duty truck. I mean, the stat was like a little bit surprising to me, 70%. Yeah. So maybe you should share that. That was a stat from the Isuzu CEO. Yeah. And yeah, light duty trucks are huge. They're a huge part of the market. This is a Kino truck, but the same technology applies really in everywhere. And this is a Komatsu digger. This, I guess is like the Japan corner, maybe. [32:38] But it's the same technology that's, oh yeah, there's a humanoid in the Kamatsu digger. I didn't see that. That caught me off guard. It's all about the details. Yeah, it's true. It's true. [32:47] Yeah. [32:48] Yeah, I think, but I think [32:51] You know, the Hill and Valley Forum, it's focused on defense. [32:54] But if there was like a hill and valley, [32:56] for the manufacturers, [32:59] it actually would be all kind of what this garage is. It's each of these sections, they all kind of deal with the same problems. If you look, you know, where we grew up, General Motors headquarters, technical headquarters and General Dynamics land system,

[33:12] technical headquarters are like, [33:13] two or three miles apart. [33:15] And like in between is my high school. Like that is the ecosystem you grow up in. So that's not random. [33:20] The reason is the [33:22] things and the technology they use to build the tank and the [33:27] literally the technical experience you need and the engineers that you need are actually quite similar to the ones you need in the car business. And so that's why Detroit is kind of an interesting place, because it was such a center of this kind of physical world. And in the Middle West, largely, that's, you know, Caterpillar is based there, etc. So I think we've really... [33:45] I think that's really a part of our DNA, like in the truest sense, where I think as [33:51] much Midwest as we are [33:53] silicon valley even though i think when people meet us you know we've spent most of our lives in silicon valley i worked at y combinator we worked at google this is very very silicon valley but i think we're heavily inspired by by our background or by our roots by the way it is worth saying [34:06] It's a shout out to Hill and Valley because that program and that conference and that event, [34:13] has really become its own thing. I mean, just a few years ago. We can give Christian the shout out now. [34:20] Also one of our investors. Also one of our 137 Ventures. Yeah. Yeah. [34:25] Yeah, it's become a real thing. And I think if we only had a hill and valley for all the other industries, it would be fantastic. But I think they're doing a great thing. [34:35] job because what they're doing is not connecting Detroit in the valley, they're connecting DC in the valley. And those bridges are very, very important. And I think,

[34:43] As you go forward the next five or 10 years, [34:46] a lot of that bridge building will continue to happen. [34:49] Have you been to Reindustrialize? That's in Detroit. Yeah, it's in Detroit. Yeah, we absolutely have in our... The Shinola Hotel is gorgeous. Yeah, yeah, yeah. Oh my gosh. Yeah, yeah, yeah. Beautiful. I mean, shout out to Dan Gilbert for really making a lot out of Detroit and... [35:03] putting a lot of capital on the line and turning the downtown around it's really fantastic yeah [35:08] Hey, it's Molly. If you enjoy our interviews, check out our newsletter, sorcery.vc, where we deliver a once a week top deals and tech headlines email and also go deeper on our podcast interviews. Subscribe to Sorcery today and don't forget to subscribe to the podcast on YouTube, Spotify, Apple or wherever you listen. Link in description to sign up.