Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1:03 1 dakika 3 saniye Most people see this and think culture. 1:06 1 dakika 6 saniye They see a charming eco-friendly tradition. 1:11 1 dakika 11 saniye But look closer. This isn't just people liking to pedal. What you were watching is a highfrequency, low friction economic machine. 1:20 1 dakika 20 saniye Ultimately, private car ownership is going to become obsolete. Cities are building for pedestrians. They're building for cycling. They're building for livability, not for cars. 1:31 1 dakika 31 saniye The bike economy, the multi-billion dollar system of Amsterdam. 1:39 1 dakika 39 saniye In Amsterdam, the bicycle isn't a toy. It is a critical urban infrastructure. 1:46 1 dakika 46 saniye If this system failed today, the city's economy would collapse tomorrow. 1:53 1 dakika 53 saniye For decades, the world has viewed Amsterdam through a romantic lens. But cities don't run on vibes. They run on 2:01 2 dakika 1 saniye systems. And when a system moves hundreds of thousands of people every single day, it stops being a choice and 2:09 2 dakika 9 saniye starts demanding three things. space, rules, and capital. 2:15 2 dakika 15 saniye Research shows that the cycling system contributes benefits equivalent to roughly 3% of the Netherlands GDP. 2:23 2 dakika 23 saniye This isn't just green energy. It's hard cash saved in public health, reduced absenteeism at work, and most importantly, unlocked productivity. 2:34 2 dakika 34 saniye Every person on a bike is a person who isn't taking up 12 square meters of public space with a car. That freed up 2:42 2 dakika 42 saniye space allows for high value real estate, commerce, and tourism. In economics, we call this optimization of land use. 2:55 2 dakika 55 saniye But success created a crisis. By the 2010s, [music] Amsterdam had a clutter problem. Thousands of bikes were choking 3:04 3 dakika 4 saniye the streets. The solution, one of the [music] most expensive and daring engineering projects in the city. They 3:12 3 dakika 12 saniye built a cathedral for 7,000 bicycles under the water. 3:18 3 dakika 18 saniye It cost millions. From a traditional linear perspective, [music] spending that much on free parking seems insane. 3:25 3 dakika 25 saniye But from a circular economy perspective, a model where Amsterdam is a global leader with 30.6% circularity rate, it 3:34 3 dakika 34 saniye was a mandatory investment. As we see in the latest urban governance [music] reports, planning isn't an option here. 3:41 3 dakika 41 saniye It's the only way to exist. 3:44 3 dakika 44 saniye In this documentary, we are going beyond the postcard. We will travel back to 1965 to see why the first sharing 3:53 3 dakika 53 saniye economy experiment failed. We will use scientific GPS data to track the shadow economy of the 80,000 bikes stolen every 4:02 4 dakika 2 saniye year. And we will explore [music] how Amsterdam is using the bicycle to become the world's first 100% circular city 4:10 4 dakika 10 saniye [music] by 2050. This is the story of how a humble machine with two wheels became [music] the backbone of a multi-billion dollar urban miracle. 4:25 4 dakika 25 saniye To understand why Amsterdam spends €85 million on underwater parking today, we have to go back to a time when the city 4:34 4 dakika 34 saniye almost lost its [music] soul to the car, the 1960s. 4:44 4 dakika 44 saniye As post-war prosperity grew, Amsterdam was being choked by motor vehicles. 4:51 4 dakika 51 saniye In response, a counterculture group called the Provos launched what would become the first bike sharing program in history, [music] 4:58 4 dakika 58 saniye the Vita Fien Plan or the white bike plan. 5:03 5 dakika 3 saniye Their proposal was radical and purely idealistic. Paint 20,000 bicycles white, leave them unlocked across the city, and 5:12 5 dakika 12 saniye let anyone use them for free. No keys, no coins, [music] no owners. They viewed mobility as a public good, as essential 5:22 5 dakika 22 saniye and free as the air we breathe. On paper, it was a circular economy. Avon Pletra. In practice, [music] it was a 5:31 5 dakika 31 saniye disaster. Within days, the system collapsed. Why? Because the provos ignored a fundamental principle of economics, the tragedy of the commons. 6:02 6 dakika 2 saniye for 6:19 6 dakika 19 saniye without ownership or registration. 6:21 6 dakika 21 saniye Public property quickly became nobody's property. In an unregulated system with zero entry cost, the incentive to maintain the [music] asset disappears. 6:32 6 dakika 32 saniye Without locks or registration, public property quickly became nobody's [music] property. The police confiscated the 6:39 6 dakika 39 saniye bikes because they invited theft and the citizens driven by individual rationalism either took them home [music] or threw them into the canals. 6:50 6 dakika 50 saniye The lesson was harsh. You cannot have a massive urban transit system [music] based solely on romanticism. 6:57 6 dakika 57 saniye You need governance. However, the white bikes planted a seed. 7:05 7 dakika 5 saniye It shifted the economic debate. The city realized that if they didn't want to spend billions on highways like Los 7:12 7 dakika 12 saniye Angeles or London, they had to invest in a different kind of capital. Transition requires not just technology but a change in urban metabolism. 7:23 7 dakika 23 saniye The failure of the white [music] bikes taught Amsterdam that the bicycle had to be integrated into the formal economy of 7:30 7 dakika 30 saniye the city, not as a rebel symbol, but as a regulated, taxed and planned asset. 7:36 7 dakika 36 saniye Today, the free spirit of the white bikes only survives in one place, the Hoga Valu National Park. But in the 7:44 7 dakika 44 saniye city, the white bike [music] has been replaced by a sophisticated capital incentive model. [music] We no longer trust in the goodness of the user. We 7:54 7 dakika 54 saniye trust in incentives. We move the tragedy of the commons to a system of managed common pool resources. [music] 8:01 8 dakika 1 saniye In economics, success can be as disruptive as failure. By the late 2010s, Amsterdam was a victim of its own 8:09 8 dakika 9 saniye efficiency. With nearly 1 million bicycles in the city, the urban surface had reached a breaking point. Every 8:17 8 dakika 17 saniye bridge, railing, and sidewalk was occupied by idle metal. This wasn't just an aesthetic grievance. 8:25 8 dakika 25 saniye It was an economic [music] bottleneck. Thousands of parked bikes were clogging the city's arteries, slowing down 200,000 daily [music] 8:34 8 dakika 34 saniye commuters at Central Station. In one of the world's most expensive real estate markets, free surface parking is a 8:41 8 dakika 41 saniye luxury [music] that a functional city cannot afford. The opportunity cost of that space was becoming too high. To 8:49 8 dakika 49 saniye [music] solve this, Amsterdam launched the entre, a massive urban reconfiguration project. The crown 8:57 8 dakika 57 saniye jewel, the open haven underwater parking. 9:01 9 dakika 1 saniye Consider that figure. Spending €60 million just to store 7,000 bicycles underwater. 9:09 9 dakika 9 saniye To a traditional accountant, this looks like a massive sunk cost. But to an urban economist, it's a master stroke of 9:17 9 dakika 17 saniye asset management. By moving 7,000 bikes beneath the water, the city performed open heart surgery on its central hub. 9:26 9 dakika 26 saniye They reclaimed the surface, restoring the landscape to its 1900's aesthetic. 9:31 9 dakika 31 saniye This isn't just about beauty. It's about maximizing pedestrian flow. A station that breathes and flows is a station 9:39 9 dakika 39 saniye that generates higher economic value for the surrounding businesses. However, an 85 million euro asset must be managed 9:48 9 dakika 48 saniye like a high performance logistics center. You cannot allow zombie bikes to occupy these slots indefinitely. 9:55 9 dakika 55 saniye This is where the incentive structure comes into play. The primary goal isn't profit, it's turnover. By offering the 10:04 10 dakika 4 saniye first 24 hours for free, the city subsidizes the daily [music] workforce. 10:10 10 dakika 10 saniye But by charging a daily fee thereafter, they penalize long-term storage and abandonment. Using advanced optical 10:18 10 dakika 18 saniye sensors, the city monitors idle inventory in real time, [music] ensuring that these 7,000 slots remain a 10:25 10 dakika 25 saniye liquid asset for those who keep the economy moving. 10:31 10 dakika 31 saniye Finally, we must consider the cost of friction. 10:40 10 dakika 40 saniye Transport. 11:11 11 dakika 11 saniye In transport economics, every second lost in a transfer is a loss in human capital and productivity. 11:18 11 dakika 18 saniye This underwater facility connects directly to the metro [music] and train platforms. A commuter can transition from their bicycle [music] to their 11:27 11 dakika 27 saniye train seat in less than 2 minutes, shielded from the elements. This level of intermodel [music] synergy is exactly what makes 11:35 11 dakika 35 saniye Amsterdam's circular economy, currently at a record 30.6% [music] circularity rate, a functional reality rather than just a policy goal. 12:10 12 dakika 10 saniye But this transition to a highly regulated system created its own set of problems. [music] Because when you turn a bicycle into a valuable economic 12:19 12 dakika 19 saniye asset, you create something else. A black market. [music] In Amsterdam, data doesn't tell the whole story. While 12:28 12 dakika 28 saniye police record 11,000 thefts a year, the reality is closer to 80,000. 12:35 12 dakika 35 saniye Most citizens don't report it. Cost of time is higher than the bike's value. 12:40 12 dakika 40 saniye This creates a massive shadow market operating entirely outside the official GDP. Forget the myth of international bike smuggling rings. 12:51 12 dakika 51 saniye A 2023 study tracking 100 bikes proved that stolen assets rarely leave the city. Instead, they feed a shadow 13:00 13 dakika circular economy. Your stolen bike is sold to a street dealer and then bought by your neighbor. It's a localized, untaxed, and 13:08 13 dakika 8 saniye [music] 13:08 13 dakika 8 saniye illegal closed loop. 13:12 13 dakika 12 saniye High theft risk creates a market distortion. If you expect your bike to be stolen within months, you don't buy 13:19 13 dakika 19 saniye quality, you buy junk. This beta bike equilibrium keeps the city's transport fleet low quality and forces owners to 13:28 13 dakika 28 saniye spend more on locks than the bikes themselves. [music] These aren't victimless crimes. They are negative externalities that drain city 13:37 13 dakika 37 saniye resources. Amsterdam's answer, the Fiat depot. Since the city couldn't stop the 13:44 13 dakika 44 saniye theft, it decided to manage the orphaned assets. Because in a circular [music] city, even a stolen bike is a resource 13:51 13 dakika 51 saniye that must be managed to maintain [music] the urban metabolism. 13:57 13 dakika 57 saniye In a city with more bicycles than people, orphaned assets are an inevitability. 14:03 14 dakika 3 saniye Every year, thousands of bikes are simply left behind. In economic terms, this is dead capital. They occupy 14:11 14 dakika 11 saniye valuable public space, provide zero utility, and degrade the urban landscape. 14:17 14 dakika 17 saniye According to official Amsterdam regulations, the city must intervene when private property interferes with public efficiency. 14:26 14 dakika 26 saniye Whether is an improperly parked bike blocking an emergency exit or a wreck that is no longer functional, the 14:33 14 dakika 33 saniye municipality acts as the ultimate enforcer of spatial order. 14:39 14 dakika 39 saniye All seized bicycles are transported to a central facility, the Fiat's depot. This is a logistical powerhouse that manages 14:48 14 dakika 48 saniye the city's lost capital. This isn't just a pound. It's a sorting facility for the city's metal metabolism, the retrieval. 14:58 14 dakika 58 saniye Owners have around 6 weeks to claim their bike for a fee, approximately €25. 15:04 15 dakika 4 saniye This fee doesn't cover the full operational cost, but it serves as a user pays tax to [music] discourage abandonment. If your bicycle was removed 15:13 15 dakika 13 saniye from a city parking facility, you will also pay €33.75 parking cost. The sorting only about 25% 15:23 15 dakika 23 saniye of bikes are ever reclaimed. The rest they are classified as waste or asset. 15:29 15 dakika 29 saniye Here is where the circular economy strategy 2020 to 2025 becomes tangible. 15:36 15 dakika 36 saniye Amsterdam aims to reduce the use of new raw materials by 50% by 2030. The Fiat's depot doesn't just scrap everything. 15:47 15 dakika 47 saniye Refurbishment. 15:48 15 dakika 48 saniye Bikes in decent condition are sold to social enterprises or secondhand shops. 15:53 15 dakika 53 saniye They are recirculated into the economy at a low price point, providing affordable mobility for lowincome residents. 16:02 16 dakika 2 saniye Education. 16:04 16 dakika 4 saniye Many are used in vocational training programs, turning junk, into a teaching tool for future mechanics. Raw 16:11 16 dakika 11 saniye materials, the unsalvageable ones, are sold as highquality scrap metal, feeding back into the industrial cycle. 16:20 16 dakika 20 saniye What we see here is a complete life cycle management of a transport mode. 16:26 16 dakika 26 saniye The biggest challenge for circular cities is the lack of effective governance mechanisms. Amsterdam succeeds because it treats the bicycle 16:34 16 dakika 34 saniye as a public utility. From the multi-million euro investment under the water to the scrap metal in the harbor, 16:42 16 dakika 42 saniye the city manages the entire cradletograve cycle of the bicycle. 16:50 16 dakika 50 saniye Amsterdam is no longer just building bike lanes. It is building a new economic DNA. The city has set a target 16:58 16 dakika 58 saniye that many economists call impossible to be 100% circular by 2050. 17:08 17 dakika 8 saniye This means that by midentury, [music] every gram of steel in a bicycle and every stone in a bridge must stay within the economic loop. 17:17 17 dakika 17 saniye The take, make, waste model will be extinct. For Amsterdam, the bicycle is the alpha product. The test case for how 17:26 17 dakika 26 saniye a city can move, consume, and recycle without depleting the planet's capital. 17:33 17 dakika 33 saniye To reach 100% circularity, the concept of private ownership is being challenged by a more efficient model, product as a 17:41 17 dakika 41 saniye service. You don't buy the bike, you rent the mobility. 17:46 17 dakika 46 saniye So we talk a lot about ownership as a service, but it's this idea of, you know, something as a service. So in our case, bike as a service. It's all of the 17:55 17 dakika 55 saniye benefits of ownership, but none of the drawbacks. So none of having to deal with the maintenance or or any of the things that come with actually owning something. 18:03 18 dakika 3 saniye Economically, this aligns the incentives of the producer and the consumer. If the bike breaks, it's the company's problem, 18:11 18 dakika 11 saniye not yours. by centralizing all of that maintenance obviously we cut cost significantly [music] we cut waste significantly um but for the individual 18:20 18 dakika 20 saniye user um they have nothing to worry about you know as a subscriber you get all of your maintenance so we come and do preventative maintenance so first of all 18:28 18 dakika 28 saniye that obviously reduced the cost um overall not so much to the end user but the cost of the business um that prevents breakdowns and things like that 18:36 18 dakika 36 saniye but in the end if you think about um the cost of time the cost of effort um maybe you don't even know how to maintain your 18:44 18 dakika 44 saniye own bike. Um, having a service that does all of that for you is just a a matter of convenience. 18:48 18 dakika 48 saniye This forces manufacturers to design for durability and modularity, the core pillars of this circular economy. When 18:57 18 dakika 57 saniye the city manages the flow and private companies manage the maintenance, the shadow economy of theft we saw in act 19:04 19 dakika 4 saniye three begins to shrink. So, if you subscribe to a bike from Clover and your bike gets stolen, first of all, we actually probably will notice that it 19:12 19 dakika 12 saniye got stolen, maybe even before you did, because we have GPS on all the bikes. 19:16 19 dakika 16 saniye Um, but if it does get stolen, you use our WhatsApp chat. You basically send us a message and we come and bring you a new bike immediately. Why steal a bike 19:25 19 dakika 25 saniye that is tracked, branded, and has no resale value in a subscription-based market? 19:32 19 dakika 32 saniye So, what is the final return on investment? Let's look at the triple bottom line. Public health. By avoiding 19:40 19 dakika 40 saniye 11,000 deaths annually through active transport, [music] the Dutch economy saves 19 billion in healthcare costs. 19:47 19 dakika 47 saniye [music] 19:48 19 dakika 48 saniye Urban density. By utilizing underwater parking and vertical depots, Amsterdam maintains a population density that 19:57 19 dakika 57 saniye would be impossible with cars, [music] keeping real estate productivity at peak levels. 20:03 20 dakika 3 saniye resource independence. By reclaiming metal from the fiat depot, the city insulates itself from global commodity 20:11 20 dakika 11 saniye price shocks. This is a sustainable urban metabolism. The city isn't just a place where people live. It's a [music] 20:19 20 dakika 19 saniye living organism that processes resources with maximum efficiency. 20:24 20 dakika 24 saniye Amsterdam's success has sent a clear message to the rest of the continent. 20:28 20 dakika 28 saniye Spatial efficiency is the only way forward for the modern metropolis. 20:34 20 dakika 34 saniye Across Europe, the bicycle has moved from being a leisure tool to a cornerstone of urban recovery and [music] economic resilience. 20:42 20 dakika 42 saniye In Paris, a city once defined by its congestion, the plan is investing hundreds of millions to become 100% 20:51 20 dakika 51 saniye cyclable. In Barcelona, the super blocks are reclaiming entire intersections from cars to create human centric lungs. 21:01 21 dakika 1 saniye These aren't [music] just environmental projects. They are market corrections. 21:06 21 dakika 6 saniye The cities are betting that a quieter, cleaner, and more agile urban center will attract more talent, more tourism, and higher property values. 21:16 21 dakika 16 saniye From the cycle superighways of London to the industrial hubs of Germany, the economic logic is consistent. Replacing 21:24 21 dakika 24 saniye a 1 1/2 ton vehicle with a 15 kg machine reduces the cost of maintenance for the city and increases the productivity [music] of the citizen. 21:35 21 dakika 35 saniye But while northern capitals have the advantage of decades of infrastructure, the real test is happening in the south. 21:42 21 dakika 42 saniye In the Mediterranean, where the street is a social space and the sun is a constant resource, a new leader is emerging. A city that has used the 21:51 21 dakika 51 saniye Amsterdam blueprint to transform itself at record speed. 22:04 22 dakika 4 saniye Foreign speech. Foreign speech. Foreign speech. 22:59 22 dakika 59 saniye [music] 23:01 23 dakika 1 saniye If Amsterdam is the blueprint, Valencia is the laboratory. 23:09 23 dakika 9 saniye Yes. 23:23 23 dakika 23 saniye [music] 23:29 23 dakika 29 saniye I could as 23:51 23 dakika 51 saniye in less than a decade, this Mediterranean city has transitioned from a car ccentric capital to a global reference [music] in urban metabolism. 24:23 24 dakika 23 saniye Valencia's transformation wasn't a matter of vibes or romanticism. It was a calculated investment in spatial efficiency. 24:32 24 dakika 32 saniye I think attracting top global talent means that you need to have a vibrant, livable city. And I think most young people um particularly who are coming 24:40 24 dakika 40 saniye into the workforce now are looking [music] for ways to get around a city that doesn't rely on public transit. 24:46 24 dakika 46 saniye They don't want to own a car um because car ownership is a total burden. Having to find parking, [music] insurance, cost of the car, all of that. So having this 24:55 24 dakika 55 saniye accessible infrastructure, cycling infrastructure specifically, and in a city like Valencia that, you know, already has a lot of reasons to attract 25:02 25 dakika 2 saniye top talent, just makes it that much better. Um, cycling is a preferred way to get around in Valencia, we're number seven in the world for cycling to work, 25:10 25 dakika 10 saniye for example. So adding a layer of an easy subscription ebike service to that just again attracts even more um top talent to the city. 25:19 25 dakika 19 saniye By implementing the Anilo Cista, the city has reclaimed high value public space to boost local commerce and reduce [music] the toxic liability of the car. 25:30 25 dakika 30 saniye It's important to remember that um often times with cars, although they can fit multiple people, most of the time it's one person per one car. So when we're 25:37 25 dakika 37 saniye asking [music] about, you know, 10 bikes versus one car, we're essentially saying 10 people versus one person. So we have a 10x multiplier on essentially everything that's happening on that 25:46 25 dakika 46 saniye street. Whether that be visits to the businesses, whether that be transactions and purchases, [music] everything gets that 10x multiplier and increases revenue for the whole street. 25:53 25 dakika 53 saniye In economics, this is the optimization of land use. The same principle that drove Amsterdam to build under its canals. 26:01 26 dakika 1 saniye If I'm cycling and I pass by, for example, a bakery, go I [snorts] smell that bakery, I go, "Oh, you know what? 26:07 26 dakika 7 saniye Maybe I'm going to stop in, try something [music] one of those products." Um, you know, essentially become a patron of that business. 26:12 26 dakika 12 saniye Whereas if I'm passing by in a car, there's no chance of that happening. And the other benefit is [music] um car parking also has this sort of psychological effect on the streets and 26:20 26 dakika 20 saniye the people that live there. Car parking makes the space feel a lot more closed in and a lot more cramped than bike parking. It keeps the space very nice and open. 26:28 26 dakika 28 saniye Emerging businesses are shifting the market from ownership to usership. 26:33 26 dakika 33 saniye You know, our customers, [music] they depend on their bikes as a reliable way to get around. And so we use an ownership as a service model. [music] So 26:41 26 dakika 41 saniye instead of owning the asset yourself, um you subscribe to it from us. And we think that's what customers need in terms of reliable day-to-day 26:48 26 dakika 48 saniye transportation. If you look at something like Lime or Valon BC, they will have that idle asset problem. Um and 26:55 26 dakika 55 saniye certainly ownership obviously the same thing. But with us, you know, handling maintenance, battery swapping, theft protection, [music] 27:03 27 dakika 3 saniye insurance, all of that. Um and yet still having access to the bike anytime you want. It's your bike. Subscription models like Swap Fiats, which already 27:11 27 dakika 11 saniye dominate the Dutch market, are landing in Valencia. These companies treat the bike as a service, covering all maintenance and repairs for a monthly fee. 27:21 27 dakika 21 saniye Ownership isn't necessarily a bad investment, but I think um most consumers are moving away from owning things. You know, people are leasing their cars, people are, you know, more 27:30 27 dakika 30 saniye and more renting their homes. [music] Um so for us, a subscription model made sense. That and affordability. This eliminates the fear of theft and 27:38 27 dakika 38 saniye long-term depreciation, turning the bicycle into a predictable, low- friction utility for the modern worker. 27:46 27 dakika 46 saniye The impact extends to logistics. In Valencia's historic center, where large trucks are increasingly restricted, last 27:54 27 dakika 54 saniye mile delivery by [music] cargo bike is becoming the gold standard for efficiency. We are witnessing the birth of micro hubs, small urban distribution 28:03 28 dakika 3 saniye centers that allow for zero emission high-speed delivery in high density zones. From the massive underwater 28:11 28 dakika 11 saniye investments in Amsterdam to the emerging subscription models in Valencia, the message is clear. The bicycle is no 28:19 28 dakika 19 saniye longer just a hobby. It is a financial instrument and a spatial optimizer. 28:25 28 dakika 25 saniye You know, when we were speaking to consumers about how we could get them to switch from a car to an ebike, it was all about convenience. So, it was about 28:33 28 dakika 33 saniye this idea that, you know, with a car, you can go point A to point B whenever you want. You're not relying on public transit or any of those things. But if 28:41 28 dakika 41 saniye you need gas, you go to a gas station, it takes 5 minutes, and you're back on your way. People perceived ebikes as inconvenient because, oh, what if I 28:49 28 dakika 49 saniye forget to charge the battery? Then it's just kind of a very heavy paper weight. 28:52 28 dakika 52 saniye Um, but if we eliminate that need for charging and people can just come and collect a charge battery anytime, [music] um, it helps break that barrier 29:00 29 dakika to entry for getting out of a car. By integrating these new business models with public planning, Valencia is 29:07 29 dakika 7 saniye [music] securing its place in the 21st century economy. Proving that a dense functional city isn't just a choice, it's a competitive necessity. 29:17 29 dakika 17 saniye Ultimately, private car ownership is going to become obsolete. [music] Cities are building for pedestrians. They're building for cycling. They're building for livability, not for cars. 29:27 29 dakika 27 saniye Throughout this documentary, we have seen the gears of a massive economic machine. But there is a final myth we 29:34 29 dakika 34 saniye must dismantle. The idea that cities like Amsterdam or Valencia look like this [music] because their citizens are 29:41 29 dakika 41 saniye simply different. History tells a different [music] story. In the 1970s, Amsterdam was on the verge of becoming 29:49 29 dakika 49 saniye another carcent ccentric congested metropolis. 29:53 29 dakika 53 saniye The transition we see today wasn't a natural evolution [music] of culture. It was a hostile takeover of urban space by 30:00 30 dakika a policy and planning. [music] When a city reaches a certain density, freedom of choice in transport becomes a mathematical impossibility. 30:10 30 dakika 10 saniye If everyone chooses a car, no one moves. 30:13 30 dakika 13 saniye In this high [music] stakes environment, planning is not an option. It is the only way to survive. What is the ultimate harvest [music] of this 30:22 30 dakika 22 saniye planning? It is the 3% GDP boost we mentioned at the start. But it's also found in the margins, 30:30 30 dakika 30 saniye the fiscal savings by avoiding the need for multi-billion euro highway expansions and massive health care costs related to sedentary lifestyles. 30:41 30 dakika 41 saniye The resilience factor by creating a circular metropolis that can process its own waste at the Kruu depot and turn it back into capital. 30:51 30 dakika 51 saniye The talent magnet in the global war for talent. Highly skilled workers choose cities based on [music] livability. 30:59 30 dakika 59 saniye Amsterdam's bicycle infrastructure is its most effective recruitment tool. 31:03 31 dakika 3 saniye [music] 31:04 31 dakika 4 saniye We started this journey looking at a simple machine, two wheels and a frame. 31:09 31 dakika 9 saniye But as we've [music] seen, the bicycle in Amsterdam is much more than a transport mode. It is a financial instrument. It is a spatial optimizer. 31:19 31 dakika 19 saniye It is the invisible engine that allows a medieval city to function as a 21st century economic [music] powerhouse. 31:28 31 dakika 28 saniye The €85 million spent on underwater tunnels, the complex [music] logistics of the Kruquius Depo, or the new 31:35 31 dakika 35 saniye Mediterranean bike lanes [music] are not costs. They are investments in resilience. 31:42 31 dakika 42 saniye In a world of rising energy prices and shrinking urban space, the Amsterdam model offers a glimpse into the future. 31:50 31 dakika 50 saniye It proves that the most sophisticated technology isn't always a new gadget. 31:55 31 dakika 55 saniye Sometimes it's the perfect integration of an old idea into a new circular world. 33:05 33 dakika 5 saniye Imagine 33:20 33 dakika 20 saniye for a moment, what if your Bitcoin holdings could purchase more than just everyday items like coffee or the latest gadgets? What if that digital currency 33:29 33 dakika 29 saniye sitting in your wallet could actually buy you a house or perhaps even an entire commercial building? real estate. 33:47 33 dakika 47 saniye Welcome to the fascinating and rapidly evolving world of crypto real [music] estate where digital assets are being transformed into tangible property. 34:02 34 dakika 2 saniye Today, we're taking a deep dive into the revolutionary intersection of cryptocurrency and property ownership, examining in detail how Bitcoin [music] 34:09 34 dakika 9 saniye is successfully transforming what were once purely digital coins into tangible physical real estate investments. 34:16 34 dakika 16 saniye Whether you're an experienced crypto investor [music] looking to diversify your portfolio or simply someone who's curious about emerging trends in 34:23 34 dakika 23 saniye property markets, this is an in-depth look at how the landscape and future of real estate transactions is fundamentally evolving and changing before our eyes. 34:33 34 dakika 33 saniye The financial world is in constant transformation, but in this decade, digitalization has accelerated that change faster than anyone imagined. 34:43 34 dakika 43 saniye Today, money, investments, [music] and assets flow through codes silent, transparent, and borderless. 34:49 34 dakika 49 saniye Cryptocurrencies led by Bitcoin mark the beginning of a new era. They shook the foundations of the global financial 34:56 34 dakika 56 saniye system, sparking both excitement and skepticism. Yet, behind that phenomenon emerged something even deeper. 35:04 35 dakika 4 saniye Tokenization. 35:09 35 dakika 9 saniye Contraos, 35:28 35 dakika 28 saniye real world assets. 35:51 35 dakika 51 saniye Moment. 36:04 36 dakika 4 saniye tokenization brings. So it's the most suitable, most modern ledger technology uh ideal for modernizing capital markets. The idea is simple, the impact enormous. 36:13 36 dakika 13 saniye Each token represents a fraction of an asset, a share, a bond, a property, or even a work of art. All recorded on a blockchain, a global tamper proof ledger. 36:29 36 dakika 29 saniye [music] 36:39 36 dakika 39 saniye [music] 36:42 36 dakika 42 saniye Smart contracts. 37:00 37 dakika We believe the next step going forward will be the tokenization [music] of financial assets. And that means every stock, every bond will have its 37:08 37 dakika 8 saniye own basically QIP. It'll be on one general ledger. 37:12 37 dakika 12 saniye In other words, a token isn't just an asset. It's a digital entry [music] in a new kind of ledger that is rewriting how capital markets keep their books. 37:22 37 dakika 22 saniye Investment in tokenized real estates represents one of the most recent advancements in the property industry. 37:27 37 dakika 27 saniye [music] 37:28 37 dakika 28 saniye Tokenization enables houses and apartments to be divided and sold and numerous smaller units. 37:46 37 dakika 46 saniye Fraction. Fraction. 37:59 37 dakika 59 saniye different. 38:05 38 dakika 5 saniye [music] 38:13 38 dakika 13 saniye [music] 38:23 38 dakika 23 saniye Small programs act like a bridge between a property and online trading platform. 38:27 38 dakika 27 saniye Hence tokens create a digital representation of a property [music] facilitating its digital transfer. 38:36 38 dakika 36 saniye The process of purchasing a property is still associated with significant bureaucracy, lengthy procedures and subsequent high costs. 38:45 38 dakika 45 saniye So what exactly is crypto real estate? 38:49 38 dakika 49 saniye At its core, the term refers to any real estate transaction where cryptocurrency plays a major role, either as a direct 38:56 38 dakika 56 saniye form of payment, a converted asset, or collateral for purchasing property. 39:10 39 dakika 10 saniye Bitcoins 39:30 39 dakika 30 saniye Crypto reference loans. 39:54 39 dakika 54 saniye But the concept goes even deeper than that. Crypto real estate includes buying a home directly with Bitcoin or other cryptocurrencies, using stable coins 40:03 40 dakika 3 saniye like USDT or USDC for a more stable [music] purchase, converting crypto into fiat at closing, taking out loans backed 40:11 40 dakika 11 saniye by cryptocurrency to purchase real property, tokenized real estate where ownership is fractionalized into digital token, blockchain based property records, and smart contract driven transactions. 40:35 40 dakika 35 saniye Stable coins. 40:51 40 dakika 51 saniye Stable coins. 41:03 41 dakika 3 saniye EMT. E A R Tther 41:17 41 dakika 17 saniye U USDT USDC 41:40 41 dakika 40 saniye US stable coinry. 41:58 41 dakika 58 saniye [snorts] 42:08 42 dakika 8 saniye for 42:34 42 dakika 34 saniye stable coins. 42:43 42 dakika 43 saniye It's an evolution in how value moves around the world. And for the first time, digital wealth is becoming a direct pathway to physical ownership. 42:56 42 dakika 56 saniye To understand how we arrived at this moment, we need to step back and look at the timeline. Bitcoin launched in 2009 as a peer-to-peer digital alternative to 43:04 43 dakika 4 saniye money. In its early years, the idea of using Bitcoin to buy real estate was laughable. But Bitcoin grew, first crossing $1, then a 100, then a 43:13 43 dakika 13 saniye thousand, then tens of thousands. A new wave of wealth was created. Suddenly, early adopters who once bought pizza 43:20 43 dakika 20 saniye with Bitcoin now had enough digital value to buy entire homes, and sellers began paying attention. The first public 43:27 43 dakika 27 saniye record of a property purchased fully in Bitcoin dates back to 2017. From there, the trend spread to luxury markets, 43:35 43 dakika 35 saniye Miami, Los Angeles, New York, Dubai, and London. Developers began marketing properties specifically to crypto 43:42 43 dakika 42 saniye buyers. Brokers started specializing in crypto transactions. Escrow companies adapted. 43:49 43 dakika 49 saniye Even governments began studying blockchainbased property registries. 43:54 43 dakika 54 saniye Buying real estate with Bitcoin isn't science fiction. Some sellers now accept crypto directly, while others work through brokers who convert Bitcoin into 44:02 44 dakika 2 saniye [music] local currency. The process is faster, borderless, and sometimes even tax efficient if you know the rules. 44:10 44 dakika 10 saniye Things that sounded impossible in 2010 became normal by 2020. And now [music] in the 2020s, cryptocurrency is becoming a serious player in global real estate. 44:20 44 dakika 20 saniye The crypto boom has created a new class of investors. High- netw worth individuals [music] want to diversify, and real estate is a safe, tangible 44:28 44 dakika 28 saniye asset. From luxury homes in Miami to condos in Dubai, Bitcoin buyers are making their mark. Let's look at a few 44:36 44 dakika 36 saniye real world examples to understand how crypto real estate works in practice. 44:40 44 dakika 40 saniye Case study one. In 2021, a luxury penthouse at Artee by Antonio Satario in Surfside, Florida made history. The 44:49 44 dakika 49 saniye property sold for 22.5 million paid entirely in cryptocurrency. The largest publicly known real estate transaction 44:57 44 dakika 57 saniye completed using digital assets at the time. A developer's decision to accept cryptocurrency had paid off. The sale came just weeks after the developer 45:06 45 dakika 6 saniye announced it [music] would begin accepting cryptocurrency payments through a partnership with blockchain platform Solid Block. According to Forbes, the [music] deal demonstrated 45:14 45 dakika 14 saniye that crypto was no longer just a speculative asset. It had become a viable method [music] for purchasing high-end real estate. Hey Study 2 in 45:23 45 dakika 23 saniye Dubai, one of the earliest large-scale experiments [music] with crypto real estate unfolded at Aston Plaza and residences located in Dubai Science 45:32 45 dakika 32 saniye Park. Marketed as one of the first major developments in the region to accept Bitcoin, the project [music] offered apartments priced directly in 45:40 45 dakika 40 saniye cryptocurrency, buyers were able to commit funds using Bitcoin, capturing global [music] attention. But the story also revealed 45:47 45 dakika 47 saniye the risks of innovation. Originally advertised as a $325 million development, the project later stalled and its completion became uncertain. 45:58 45 dakika 58 saniye While crypto payments were accepted, it remains unclear whether all buyers ultimately received finished properties. 46:05 46 dakika 5 saniye The case highlighted both the promise and the pitfalls of early crypto adoption real estate. Case study 3. In 46:13 46 dakika 13 saniye 2025, Spain recorded one of its first officially reported property sales completed with Bitcoin. A property in 46:20 46 dakika 20 saniye Madrid valued at approximately 1.5 million of euros was purchased by an international buyer using Bitcoin. The transaction followed standard real 46:28 46 dakika 28 saniye estate procedures including escrow legal compliance and the conversion of crypto into euros for the seller. It marked a 46:36 46 dakika 36 saniye significant milestone showing that cryptocurrency could integrate into traditional real [music] estate systems even in highly regulated European 46:43 46 dakika 43 saniye markets. Case study four in the United States crypto adoption hasn't been limited to coastal tech hubs. An agent 46:51 46 dakika 51 saniye with Sothabis International Realy in Delaware reported selling a luxury property for $175 million paid in 46:59 46 dakika 59 saniye Bitcoin. Believed to be one of the state's first major real estate transactions involving cryptocurrency, the sale was widely publicized as a 47:07 47 dakika 7 saniye local milestone, signaling that crypto real estate was beginning to reach beyond niche markets and into everyday property transactions. 47:18 47 dakika 18 saniye [music] 47:18 47 dakika 18 saniye Genius Act. 47:22 47 dakika 22 saniye [music] 47:33 47 dakika 33 saniye different stable coins. 47:47 47 dakika 47 saniye Evolution motion. 48:16 48 dakika 16 saniye Maximum. 48:30 48 dakika 30 saniye forract. 49:09 49 dakika 9 saniye Taken together, these cases tell a larger story, one of experimentation, success, setbacks, and growing legitimacy. Crypto real estate is no 49:18 49 dakika 18 saniye longer hypothetical. It's happening transaction by transaction across the globe. But it's not all smooth sailing. 49:26 49 dakika 26 saniye Crypto's value can be volatile, regulations vary by country, and tax implications can be tricky. First, volatility. Bitcoin and other 49:35 49 dakika 35 saniye cryptocurrencies can move dramatically, sometimes losing or gaining a third of their value in weeks. For buyers who convert at closing, rapid swings can erase gains or spike costs in hours. 49:47 49 dakika 47 saniye Second, transaction mechanics and title. 49:50 49 dakika 50 saniye Even when a seller accepts crypto, most governments and land registries require deeds to be issued in the local currency. That usually means an 49:58 49 dakika 58 saniye intermediary converts crypto to fiat before the legal title is registered, adding counterparty risk and an extra step that can delay and complicate 50:06 50 dakika 6 saniye settlements. Third, taxes. In many jurisdictions, authorities treat crypto as property, not currency, which makes nearly every transfer a taxable event. 50:14 50 dakika 14 saniye that includes sales, exchanges, and sometimes even payments for goods or services. Buyers and sellers must track cost basis, gains, and report the 50:23 50 dakika 23 saniye transactions accurately or face audits and penalties. Fourth, lending and counterparty risk. Cryptobacked lending exploded in the previous market cycle, 50:32 50 dakika 32 saniye but it ended with high-profile collapses and bankruptcies. When platforms fail, borrowers and depositors can lose access to funds. Collateral can be liquidated 50:39 50 dakika 39 saniye at a loss and promise liquidity disappears, a danger for anyone relying on thirdparty services to bridge crypto and property purchases. 50:47 50 dakika 47 saniye Fifth, compliance and anti-moneyaundering rules. Regulators and global bodies have tightened rules around virtual assets to prevent illicit 50:54 50 dakika 54 saniye flows. Real estate transactions are high on that list, meaning additional KYC, source of fund checks, and reporting requirements. Failure to meet these 51:03 51 dakika 3 saniye standards can stall a sale, trigger investigations, or expose participants to legal liability. Sixth, operational 51:10 51 dakika 10 saniye and technical risk. Crypto transactions are irreversible. A single wrong character in a wallet address or a fishing attack on an email with wiring 51:17 51 dakika 17 saniye instructions can send millions to the wrong place, and there's no bank to reverse the transfer. Seventh, technology risk, smart contracts, tokenization, and new platforms bring 51:26 51 dakika 26 saniye innovation, but also software bugs and design flaws. A poorly written smart contract or an unodudited tokenization platform can freeze assets, misallocate ownership shares or enable exploits. 51:37 51 dakika 37 saniye Finally, market and reputational risk. 51:40 51 dakika 40 saniye Developers and brokers who accept crypto can attract new buyers, but they also take on greater scrutiny, regulatory compliance burdens, and the risk that projects promoted with crypto funding 51:48 51 dakika 48 saniye may underdel, stall, or become entangled in legal disputes. In short, crypto can speed and globalize property deals, but 51:56 51 dakika 56 saniye it also layers on volatility, regulatory complexity, and new failure modes for buyers, sellers, and advisers. The 52:03 52 dakika 3 saniye lesson is clear. Proceed with rigorous legal counsel, hardened custody practices, and transparent compliance. 52:10 52 dakika 10 saniye The opportunity is real, but so are the pitfalls. 52:34 52 dakika 34 saniye Still, the opportunities are huge. A new generation of buyers is turning digital value into physical assets. [music] For many, Bitcoin isn't just a currency. 52:44 52 dakika 44 saniye It's a gateway to ownership. 52:46 52 dakika 46 saniye One of the biggest shifts is tokenization. [music] Instead of buying an entire building, investors can now purchase fractional ownership [music] 52:54 52 dakika 54 saniye through blockchainbased tokens. This lowers the barrier to entry, allowing smaller investors to access real estate markets that were once reserved for institutions and the ultra wealthy. 53:12 53 dakika 12 saniye for 53:17 53 dakika 17 saniye [music] 53:25 53 dakika 25 saniye [music] 53:39 53 dakika 39 saniye important. 53:49 53 dakika 49 saniye [music] 53:50 53 dakika 50 saniye Tokenization also brings liquidity to an industry that has traditionally been slow [music] and illquid. Real estate 53:58 53 dakika 58 saniye transactions can take months. Tokenized shares can potentially be transferred in minutes. Crypto is also reshaping 54:05 54 dakika 5 saniye crossber real estate. International buyers often face currency controls, wire delays, and banking restrictions. 54:12 54 dakika 12 saniye Cryptocurrency allows capital to move globally with fewer friction points, [music] opening markets to buyers who were previously locked out. As a result, 54:20 54 dakika 20 saniye cities that embrace crypto-friendly regulations are attracting global capital faster. Developers are responding by marketing properties directly to crypto holders, not as a 54:28 54 dakika 28 saniye novelty, but as a strategy. Governments are also exploring blockchain for land registries and property records. 54:35 54 dakika 35 saniye Immutable ledgers can reduce disputes, prevent title fraud, and provide [music] permanent verifiable ownership history, especially in regions where property 54:43 54 dakika 43 saniye rights are difficult to enforce. This isn't a complete replacement of traditional real estate. It's a transformation. [music] Crypto doesn't eliminate the 54:51 54 dakika 51 saniye fundamentals. Location, demand, and due diligence still matter, but it changes how value moves, how quickly deals happen, and who gets [music] access. So, 54:59 54 dakika 59 saniye what does all of this mean for you as an investor or future home buyer? It means new opportunities are emerging. 55:05 55 dakika 5 saniye Opportunities to leverage your crypto holdings. Opportunities [music] to participate in international markets more easily. Opportunities to acquire 55:13 55 dakika 13 saniye property faster and more [music] efficiently. 55:33 55 dakika 33 saniye [music] 55:50 55 dakika 50 saniye Sophistic. consequenc 56:08 56 dakika 8 saniye Real estate system. [music] 56:23 56 dakika 23 saniye Fore 56:28 56 dakika 28 saniye [music] 56:40 56 dakika 40 saniye [music] 56:45 56 dakika 45 saniye [music] 56:48 56 dakika 48 saniye real estate. 56:57 56 dakika 57 saniye But like any emerging space, education [music] is key. Working with crypto friendly agents, attorneys, and escrow companies is essential. 57:07 57 dakika 7 saniye Understanding your local regulations is crucial, and ensuring the security of your crypto wallet is absolutely non-negotiable. 57:17 57 dakika 17 saniye The professor [music] 57:26 57 dakika 26 saniye [music] 57:27 57 dakika 27 saniye sophistic Financchech. 57:40 57 dakika 40 saniye [music] 57:50 57 dakika 50 saniye [music] 57:58 57 dakika 58 saniye experenc. [music] 58:12 58 dakika 12 saniye [music] 58:24 58 dakika 24 saniye [music] 58:29 58 dakika 29 saniye Fundamentas 58:32 58 dakika 32 saniye [music] 58:41 58 dakika 41 saniye [music] 58:57 58 dakika 57 saniye physical. 59:05 59 dakika 5 saniye [music] 59:20 59 dakika 20 saniye The cryptocurrency market has entered the opening days of 2026 [music] with renewed momentum after a volatile end to 2025. Five. Prices across major digital 59:29 59 dakika 29 saniye assets have moved sharply higher, drawing attention from both retail traders and institutional investors. In early January, the total cryptocurrency 59:37 59 dakika 37 saniye market capitalization climbed to around $3.2 [music] trillion, according to aggregated data from major market trackers. This represents a meaningful rebound from 59:46 59 dakika 46 saniye late 2025 levels with the market adding hundreds of billions of dollars in value over a relatively short period. While exact figures vary, [music] the 59:53 59 dakika 53 saniye direction is clear. Capital has returned to the crypto market at the start of the year. At the center of this move is Bitcoin, [music] which rallied toward the $93,000 level in the first week of 1:00:02 1 saat 2 saniye January. As the largest and most influential digital asset, Bitcoin [music] continues to act as the market's primary anchor, and its strength has 1:00:10 1 saat 10 saniye helped lift sentiment across the broader ecosystem. Historically, strong Bitcoin performance has often preceded periods of [music] increased activity in 1:00:19 1 saat 19 saniye alternative cryptocurrencies, and early 2026 appears [music] to be following a similar pattern. Another key factor has been renewed institutional 1:00:26 1 saat 26 saniye participation, particularly through spot Bitcoin and Ethereum exchange traded funds. Reports from early January indicate notable ETF inflows, suggesting 1:00:35 1 saat 35 saniye that traditional investors are once again increasing exposure to digital assets. The current momentum appears to be driven by a combination of factors, 1:00:42 1 saat 42 saniye including Bitcoin's [music] price recovery, increased ETF inflows, improved global risk sentiment, expectations of more supportive regulatory and macroeconomic conditions. 1:00:53 1 saat 53 saniye As 2026 begins, the cryptocurrency market finds itself at a familiar crossroads. Renewed optimism balanced against persistent uncertainty. Whether 1:01:01 1 saat 1 dakika 1 saniye this earlier strength marks [music] the beginning of a sustained trend or simply another chapter in crypto's cyclical nature is a question that only time will 1:01:08 1 saat 1 dakika 8 saniye answer. For now, the message from the market is clear. Crypto is once [music] again commanding attention. If you 1:01:16 1 saat 1 dakika 16 saniye approach crypto real estate with knowledge and preparation, the rewards can be extraordinary. [music] Bitcoin the bricks isn't just a catchy 1:01:23 1 saat 1 dakika 23 saniye phrase. It's the future of real estate investment. If you want to stay ahead of the curve, now's the time to learn how crypto [music] can open doors. 1:01:33 1 saat 1 dakika 33 saniye Literally. 1:01:46 1 saat 1 dakika 46 saniye Explorer 1:01:51 1 saat 1 dakika 51 saniye [music] 1:01:59 1 saat 1 dakika 59 saniye Transparence. [music] 1:02:10 1 saat 2 dakika 10 saniye [music] 1:02:33 1 saat 2 dakika 33 saniye From digital coins to physical assets, from online wallets to real [music] world property lines, cryptocurrency is reshaping how we buy, sell, and think 1:02:41 1 saat 2 dakika 41 saniye about real estate. We are witnessing the merging of two worlds. The [music] oldest asset on earth and one of the newest technological inventions of our 1:02:49 1 saat 2 dakika 49 saniye time. And as the future unfolds, only one question remain. [music] Will Bitcoin buy your next home? 1:04:21 1 saat 4 dakika 21 saniye September 2008. 1:04:24 1 saat 4 dakika 24 saniye The global financial system is on the verge of a total blackout. Layman Brothers has vanished. Meil Lynch is 1:04:32 1 saat 4 dakika 32 saniye gone. AIG is hemorrhaging billions every hour. 1:04:38 1 saat 4 dakika 38 saniye In Washington, the halls of the Treasury are filled with the smartest minds in the country. But they have a problem. 1:04:45 1 saat 4 dakika 45 saniye They are staring at [music] a black box of toxic debt worth trillions and no tools to open it. There is only one 1:04:54 1 saat 4 dakika 54 saniye person who has the map. One person who spent the last 20 years [music] building a digital unblinking eye that can see 1:05:02 1 saat 5 dakika 2 saniye through the wreckage. The government didn't call the [music] big banks to save the world. They needed someone to handle the toxic waste. And there was 1:05:10 1 saat 5 dakika 10 saniye only one man that could lead through that darkness. They called Larry Frink. 1:05:20 1 saat 5 dakika 20 saniye Larry Frink, the man behind Black Rock. 1:05:26 1 saat 5 dakika 26 saniye Today, he manages more money than the GDP of almost every nation on Earth, $14 trillion. [music] 1:05:35 1 saat 5 dakika 35 saniye But before he was the shadow sovereign of Wall Street, he was a man who lost everything. 1:05:41 1 saat 5 dakika 41 saniye Who is Larry Frink? [music] Lawrence D.Fin, also known as Larry Frink, is [music] one of the co-founders 1:05:48 1 saat 5 dakika 48 saniye of Black Rockck. He is also the chairman and CEO of the company, the largest money [music] management firm in the 1:05:55 1 saat 5 dakika 55 saniye world. It's the first time in history a company manages to reach such a milestone and gives a clear picture of 1:06:03 1 saat 6 dakika 3 saniye how Black Rockck [music] operates. Not just a traditional investment bank, but as a central pillar of the global 1:06:10 1 saat 6 dakika 10 saniye financial infrastructure, [music] where its sheer scale allows it to influence economies and industries at a level previously reserved only for 1:06:19 1 saat 6 dakika 19 saniye nation states. [music] Founded in 1988 as an investment firm that prioritized risk management with 1:06:28 1 saat 6 dakika 28 saniye 11.5 [music] to 14 trillion under management, Black Rockck's influence is staggering. 1:06:35 1 saat 6 dakika 35 saniye BlackRock [music] is a top three shareholder in nearly every company in the S&P 500 from Apple [music] to Exxon, 1:06:43 1 saat 6 dakika 43 saniye from Microsoft to Nestle. They don't just invest in the market, they are the market. 1:06:51 1 saat 6 dakika 51 saniye But its reach is personal. It holds [music] the retirement dreams of over 35 million Americans. This is the [music] 1:06:59 1 saat 6 dakika 59 saniye story of how a kid from a California shoe store became the custodian of the world's wealth. But who is Larry Frink? 1:07:09 1 saat 7 dakika 9 saniye Lawrence Douglas [music] Frink entered the world on November the 2nd, 1952. 1:07:15 1 saat 7 dakika 15 saniye Born [music] in Los Angeles, California, he was raised in a Jewish family in the heart of San Fernando Valley, [music] the quintessential American suburb of Vanois. 1:07:26 1 saat 7 dakika 26 saniye His home was a balance of [music] academic discipline and retail grit. His mother, Leela, was an English professor who valued the power [music] of language and education. 1:07:37 1 saat 7 dakika 37 saniye And long before he pulled the strings of the global economy, Larry Frink was learning the value of money [music] on a much smaller scale. 1:07:45 1 saat 7 dakika 45 saniye his father's shoe store in Vanoise where he spent evenings helping and learning the business. As one [music] of three 1:07:52 1 saat 7 dakika 52 saniye children, Larry grew up in a household where hard work wasn't just encouraged, 1:07:56 1 saat 7 dakika 56 saniye [music] 1:07:57 1 saat 7 dakika 57 saniye it was the baseline. 1:07:59 1 saat 7 dakika 59 saniye While he often joked he wasn't the smartest in the room, it was this specific [music] combination of his mother's intellectual curiosity and his 1:08:08 1 saat 8 dakika 8 saniye father's mainstream business sense that would eventually form the DNA of [music] a global financial giant. While the 1:08:15 1 saat 8 dakika 15 saniye future titans of Wall Street [music] were rubbing elbows in the marble halls of Harvard or Yale, Think was a brewin. 1:08:23 1 saat 8 dakika 23 saniye In 1970, [music] Larry arrived at UCLA. 1:08:27 1 saat 8 dakika 27 saniye For a young man from Vanoise, [music] this wasn't just a local university. It was a world of ideas. 1:08:34 1 saat 8 dakika 34 saniye But it was in his final years that the trajectory of his life shifted. [music] He immersed himself in political science, learning how power moves 1:08:43 1 saat 8 dakika 43 saniye through nations. But he soon realized that in the modern [music] world, power follows the money. This led him to the 1:08:50 1 saat 8 dakika 50 saniye Anderson School of Management specializing [music] in real estate. It was here that he began to see the world through the lens of assets and [music] yields. 1:09:00 1 saat 9 dakika This public education gave him a different edge. While his [music] peers at private East Coast schools were being groomed for traditional corporate roles, 1:09:09 1 saat 9 dakika 9 saniye Larry was developing the outsider's eye, a perspective that allowed him to see opportunities in the messy, unpolished corners of the bond market. 1:09:20 1 saat 9 dakika 20 saniye He graduated in 1976, [music] not with a silver spoon, but with a California bred ambition to take on the giants of Manhattan. 1:09:30 1 saat 9 dakika 30 saniye He was a brewin headed for Wall Street, [music] and the financial world had no idea what was coming. 1:09:38 1 saat 9 dakika 38 saniye [music] 1:09:40 1 saat 9 dakika 40 saniye The year is 1976. 1:09:43 1 saat 9 dakika 43 saniye New York City is a grit cover battlefield and Larry Frink has just been handed the keys to the kingdom. 1:09:50 1 saat 9 dakika 50 saniye Goldman Sachs, the most prestigious name in finance back then, has practically hired him. He had passed the technical 1:09:57 1 saat 9 dakika 57 saniye tests. He had charmed the partners. All that remained was a rubber stamp interview with human resources. 1:10:05 1 saat 10 dakika 5 saniye But Larry, Larry wasn't just confident, he was impatient. When the recruiter asked for his thoughts on the firm, 1:10:13 1 saat 10 dakika 13 saniye Larry didn't give a thank you. He gave a consultation. He pointed out the flaws in their system. At Goldman, they wanted 1:10:20 1 saat 10 dakika 20 saniye a soldier. Larry was already acting like a general. 1:10:28 1 saat 10 dakika 28 saniye In that room, the rigid Golden Way clashed with the unfiltered Finink way. 1:10:34 1 saat 10 dakika 34 saniye Before he could even hail a camp back to his hotel, the offer was dead. The most coveted job in Wall Street history had 1:10:41 1 saat 10 dakika 41 saniye vanished. All because Larry Frink couldn't stop himself from trying to fix a system he hadn't even joined yet. It 1:10:49 1 saat 10 dakika 49 saniye was a crushing blow. But in the shadow of that rejection, a door opened at a scrappy second tier firm called First 1:10:57 1 saat 10 dakika 57 saniye Boston. It was a place with less prestige but more white space. At Goldman, he would have been a cog in a 1:11:05 1 saat 11 dakika 5 saniye perfect machine. At First Boston, he was the architect. He was given a desk, a telephone, and the freedom to build 1:11:13 1 saat 11 dakika 13 saniye something entirely new. The mortgagebacked security. He didn't know it yet, but that recruiters know was the 1:11:21 1 saat 11 dakika 21 saniye foundation upon which the $14 trillion empire of Black Rockck would be built. 1:11:33 1 saat 11 dakika 33 saniye It's 1976 when [music] Larry Frink arrives at First Boston. At the time, the firm was the scrappy underdog of 1:11:41 1 saat 11 dakika 41 saniye investment banking. It wasn't as stiff as Morgan [music] Stanley or as elitist as Goldman. It was the perfect 1:11:49 1 saat 11 dakika 49 saniye laboratory for a man who didn't fit the mold. Larry was assigned to the bond department. Back then, bonds [music] 1:11:56 1 saat 11 dakika 56 saniye were considered the boring corner of finance. 1:11:59 1 saat 11 dakika 59 saniye It was where you went to retire. Stocks were sexy. Bonds were for grandmothers. 1:12:05 1 saat 12 dakika 5 saniye But Larry [music] saw something everyone else missed. 1:12:10 1 saat 12 dakika 10 saniye He looked at the American dream, [music] the suburban house, the white picket fence, the 30-year mortgage, and he saw a math problem. 1:12:19 1 saat 12 dakika 19 saniye He realized that if you took thousands of individual home mortgages, bundled them together [music] like a deck of cards, and sold slices of that deck to investors, you created a money machine. 1:12:32 1 saat 12 dakika 32 saniye This was the birth of the securitization market. 1:12:36 1 saat 12 dakika 36 saniye What Larry Frink helped create was more than a [music] financial product. It was a structural shift. 1:12:45 1 saat 12 dakika 45 saniye Securitization didn't just bundle mortgages. It separated risk from reality. For the first time, financial 1:12:53 1 saat 12 dakika 53 saniye value could travel faster [music] than the underlying economy that supported it. A house in California became a line 1:13:00 1 saat 13 dakika in a spreadsheet in New York, which became a yield sold to an investor in Tokyo. Risk no longer lived where 1:13:08 1 saat 13 dakika 8 saniye decisions were made. It was abstracted, 1:13:10 1 saat 13 dakika 10 saniye [music] 1:13:11 1 saat 13 dakika 11 saniye sliced, repackaged, and distributed across the system. This was the moment when finance [music] stopped reflecting 1:13:17 1 saat 13 dakika 17 saniye the real economy and began building a parallel one. A system that could grow without limits as long as everyone 1:13:25 1 saat 13 dakika 25 saniye believed the models were right. And for a while [music] they were. 1:13:31 1 saat 13 dakika 31 saniye By the early 80s, Larry was the golden boy. He wasn't just hitting targets, he was shattering them. In one year, his 1:13:38 1 saat 13 dakika 38 saniye department was responsible for nearly onethird of First Boston's total profits. At age 31, he became the 1:13:46 1 saat 13 dakika 46 saniye youngest managing director the firm had ever seen. He was earning millions. He was the successor for Prodigy, the man 1:13:53 1 saat 13 dakika 53 saniye who could do no wrong. He had moved to his family to a sprawling estate. He was flying private. He had conquered the 1:14:01 1 saat 14 dakika 1 saniye grit cover battlefield [music] of Manhattan. 1:14:06 1 saat 14 dakika 6 saniye But in the world of high finance, the higher you fly, the thinner the air becomes. 1:14:15 1 saat 14 dakika 15 saniye Larry was making hundreds of millions for the bank, but there was a ghost in the machine, a variable he hadn't 1:14:22 1 saat 14 dakika 22 saniye [music] accounted for. The year was 1986. 1:14:26 1 saat 14 dakika 26 saniye Larry had made a massive bet on interest rates. He believed they would stay stable. He was so sure of his math, so 1:14:35 1 saat 14 dakika 35 saniye confident in his track record that he didn't realize the ground was shifting beneath his feet. 1:14:41 1 saat 14 dakika 41 saniye In just 3 months, the Golden Boys department went from profit to a catastrophic $100 million [music] loss. 1:14:49 1 saat 14 dakika 49 saniye In the 80s, 100 million wasn't just a loss. It was a national scandal. 1:14:54 1 saat 14 dakika 54 saniye Overnight, the man who [music] was supposed to run the bank was a pariah. 1:14:58 1 saat 14 dakika 58 saniye The phones stopped ringing. The friends on the trading floor looked away when he walked by. He had been the smartest man 1:15:05 1 saat 15 dakika 5 saniye in the room until he wasn't. [music] He would later describe this moment as the most painful experience of my life. 1:15:13 1 saat 15 dakika 13 saniye But as he sat in the ruins of his reputation, Larry Frink wasn't just mourning his career. [music] He was obsessed with one question. How did I not see the risk? 1:15:25 1 saat 15 dakika 25 saniye That obsession, the fear of the unknown variable, would become the cornerstone of Black Rockck. 1:15:37 1 saat 15 dakika 37 saniye By 1983, Larry wasn't just selling bonds, he was a pioneer of the CMO, 1:15:42 1 saat 15 dakika 42 saniye [music] 1:15:43 1 saat 15 dakika 43 saniye collateralized mortgage obligation. 1:15:48 1 saat 15 dakika 48 saniye Think of it like a waterfall. Larry took thousands of mortgages and sliced them into tranches. Some investors took the 1:15:56 1 saat 15 dakika 56 saniye top slice, low risk, low reward. Others took the bottom, high risk, high yield. 1:16:02 1 saat 16 dakika 2 saniye It was a masterpiece [music] of financial engineering. It made the illquid liquid. It made first Boston the center of the universe. 1:16:13 1 saat 16 dakika 13 saniye But there was a flaw, a tiny mathematical ghost in his models. 1:16:18 1 saat 16 dakika 18 saniye Larry's team had predicted that interest rates would rise and they hedged their bets accordingly. But in the second 1:16:25 1 saat 16 dakika 25 saniye quarter of 1986, rates did something the models said was impossible. They plummeted because they didn't have a system to 1:16:33 1 saat 16 dakika 33 saniye track their real-time exposure. Larry was [music] flying blind. He was the pilot of a Boeing 747 trying to land in 1:16:41 1 saat 16 dakika 41 saniye a storm using nothing but a compass and a prayer. By the time he realized the engines were on fire, the plane had 1:16:48 1 saat 16 dakika 48 saniye already hit the [music] mountain. $100 million. All gone. 1:16:58 1 saat 16 dakika 58 saniye He wasn't just fired, he was erased. 1:17:01 1 saat 17 dakika 1 saniye After the dust settled, Larry found himself in a peculiar kind of exile. He wasn't just unemployed, he was haunted. 1:17:09 1 saat 17 dakika 9 saniye He realized that the $100 million [music] loss wasn't a failure of talent, it was a failure of vision. What 1:17:16 1 saat 17 dakika 16 saniye happened in 1986 wasn't a personal miscalculation. It was a systemic blindness. 1:17:24 1 saat 17 dakika 24 saniye At the time, every major financial [music] institution operated the same way. Positions were fragmented. Exposure [music] was estimated, not measured. 1:17:34 1 saat 17 dakika 34 saniye Risk was inferred after the fact. Banks knew what they bought [music] yesterday, but not what it was worth right now. The 1:17:42 1 saat 17 dakika 42 saniye system rewarded speed, volume, and confidence, not understanding. And as long as markets [music] moved slowly, 1:17:49 1 saat 17 dakika 49 saniye the illusion held. But once volatility entered the market, no one truly [music] knew where the danger was or how large 1:17:57 1 saat 17 dakika 57 saniye it had become. Larry didn't [music] just lose money. He realized the entire financial system was flying without 1:18:03 1 saat 18 dakika 3 saniye [music] instruments. Wall Street was essentially a collection of blind giants. Every major firm, Goldman, 1:18:12 1 saat 18 dakika 12 saniye Layman, Meil Lynch was standing just [music] one inch away from total collapse at any given second. Why? 1:18:20 1 saat 18 dakika 20 saniye Because they didn't actually know what they owned. This was information blindness. 1:18:28 1 saat 18 dakika 28 saniye In the [music] 1980s, you knew what you bought yesterday, but you had no idea what it was worth right now. A sudden 1:18:35 1 saat 18 dakika 35 saniye shift in interest rates [music] or a political coup across the ocean could vaporize a billion dollars before the morning coffee [music] was poured. 1:18:46 1 saat 18 dakika 46 saniye Larry understood a terrifying truth. The entire global financial system was built on a foundation of guesswork. 1:18:55 1 saat 18 dakika 55 saniye It hit him with the force of an epiphany. If he could build a [music] brain, a machine that could see the risk 1:19:02 1 saat 19 dakika 2 saniye that humans were too slow to calculate, he wouldn't just be a banker. He would be the only man in the world with a 1:19:09 1 saat 19 dakika 9 saniye flashlight in a dark room. This realization changed his entire philosophy of investing. He stopped 1:19:17 1 saat 19 dakika 17 saniye looking for the big score and started looking for the safe passage. He didn't want to beat the market anymore. He wanted to measure it. 1:19:27 1 saat 19 dakika 27 saniye He would later tell his partners, "We are never going to be blind again." That vow born from the humiliation [music] 1:19:35 1 saat 19 dakika 35 saniye of 1986 became the blueprint for a new kind of firm. A firm that didn't rely on the ego of a [music] star trader, but on the cold, unblinking eye of technology. 1:19:54 1 saat 19 dakika 54 saniye Larry Frink was a man with a vision, but he was also a man with a tainted resume. 1:20:00 1 saat 20 dakika To the rest of Wall Street, he was the guy who lost a h 100red million. But to a small circle of insiders at First Boston, he was the only one who truly 1:20:09 1 saat 20 dakika 9 saniye understood why it happened. He began making calls. He wasn't offering high salaries or flashy offices. He was 1:20:18 1 saat 20 dakika 18 saniye offering a chance to build a holy grail, a financial firm where technology governed the ego, not the other way 1:20:25 1 saat 20 dakika 25 saniye round. And he eventually found the right people to help him build that holy [clears throat] grail. 1:20:33 1 saat 20 dakika 33 saniye [music] 1:20:34 1 saat 20 dakika 34 saniye Rob Capito, the enforcer, a powerhouse trader who knew the plumbing of the bomb market better than anyone else. He 1:20:43 1 saat 20 dakika 43 saniye provided the muscle Larry needed to execute the vision. Ben Golib, the Oracle, a PhD with a mind like a 1:20:51 1 saat 20 dakika 51 saniye supercomput. While other bankers were focused on lunch reservations, Golib was thinking about value at risk and Monte Carlo simulations. 1:21:02 1 saat 21 dakika 2 saniye Susan Wagner, the mastermind, brilliant, calculating, and capable of seeing structural flaws in a 1:21:10 1 saat 21 dakika 10 saniye multi-billion dollar merger before a single paper was signed. Along with Barbara Novik, Ralph Schloststein, Q 1:21:17 1 saat 21 dakika 17 saniye Freighter, and Keith Anderson, they became the original eight. Frink wasn't looking for bankers who would run after 1:21:24 1 saat 21 dakika 24 saniye the money. He wanted architects, people who were tired of being blind. 1:21:30 1 saat 21 dakika 30 saniye When he found them, they met in living rooms and coffee shops. They had the blueprints for a system they called 1:21:37 1 saat 21 dakika 37 saniye Aladdin, an acronym for asset, liability, debt, and derivative investment network. It was designed to 1:21:46 1 saat 21 dakika 46 saniye be the unblinking eye Larry had dreamed of in his exile. 1:21:50 1 saat 21 dakika 50 saniye But a brain without a body is just a dream. To build Aladdin, they needed hardware. They needed offices. And most 1:21:59 1 saat 21 dakika 59 saniye importantly, they needed the one thing Larry's reputation had cost him. 1:22:03 1 saat 22 dakika 3 saniye Capital. Aladdin was not designed to beat the market. It was designed to understand it. But its real power emerged when others started using it. 1:22:13 1 saat 22 dakika 13 saniye Banks, insurance companies, pension funds, sovereign institutions. As Aladdin spread, something subtle happened. Risk stopped being subjective. 1:22:25 1 saat 22 dakika 25 saniye It became standardized. When Aladdin flagged an asset as dangerous, entire markets adjusted accordingly. 1:22:35 1 saat 22 dakika 35 saniye Not because Larry Frink said so, but because the system trusted the model. At that point, Black Rockck was no longer 1:22:42 1 saat 22 dakika 42 saniye just managing money. It was helping define how risk itself was understood. 1:22:46 1 saat 22 dakika 46 saniye [music] 1:22:48 1 saat 22 dakika 48 saniye And whoever defines risk defines the boundaries of decisionmaking. 1:23:02 1 saat 23 dakika 2 saniye Enter Steven Schwartzman. In 1988, Schwartzman was the rising king of private equity. His firm Blackstone was aggressive, wealthy, and hungry. 1:23:15 1 saat 23 dakika 15 saniye The meeting was tense. Schwartzman knew Larry's history. He knew about the 1986 disaster. But Larry didn't hide from it. 1:23:24 1 saat 23 dakika 24 saniye He used it as his primary selling point. 1:23:27 1 saat 23 dakika 27 saniye Because Larry had seen the end of the world already, [music] he knew exactly how the lights went out. And because of that, he was the only one who knew how to keep them on. 1:23:38 1 saat 23 dakika 38 saniye Larry's pitch was revolutionary. He didn't want to start a hedge fund. He wanted to create a fiduciary company. 1:23:46 1 saat 23 dakika 46 saniye a firm that managed other people's money with the same technological rigor usually reserved for NASA. He asked for 1:23:54 1 saat 23 dakika 54 saniye a $5 million credit line and a partnership. In exchange, Schwartzman would own 50% of the new venture. He 1:24:02 1 saat 24 dakika 2 saniye knew he was buying cheap [music] because he was buying on a distressed asset, Think's damaged reputation. 1:24:09 1 saat 24 dakika 9 saniye But he did so betting on the idea that the [music] experience had turned Larry Frink into some sort of financial genius. 1:24:17 1 saat 24 dakika 17 saniye The deal was done. On a Friday in March 1988, the team moved into a single cramped room within Blackstone's [music] offices. 1:24:27 1 saat 24 dakika 27 saniye They were five computers, a few folding chairs, and a mountain of cables [music] on the floor. They were under the Blackstone umbrella, but Larry knew that 1:24:36 1 saat 24 dakika 36 saniye this was just [music] a temporary shelter. He didn't just want a department. He wanted an empire. He had 1:24:43 1 saat 24 dakika 43 saniye the money. He had the team. And in the corner of that small room, the first lines of code for Aladdin were being written. 1:24:52 1 saat 24 dakika 52 saniye The information blindness was over. The era of Black Rock, though it didn't have that name yet, had begun. 1:25:03 1 saat 25 dakika 3 saniye [music] 1:25:06 1 saat 25 dakika 6 saniye The first office of Blackstone Financial Management wasn't a glass tower. It was a glorified closet. [music] Because of 1:25:13 1 saat 25 dakika 13 saniye the heat generated by the early Sun Micro Systemystems workstations, the temperature in the room rarely dropped below 80°, [music] 27° C. 1:25:24 1 saat 25 dakika 24 saniye While the rest of the Blackstone group was out at expensive lunches closing leveraged buyouts, Larry's original eight [music] were building a digital fortress. 1:25:35 1 saat 25 dakika 35 saniye They were the weirdos in the basement. 1:25:37 1 saat 25 dakika 37 saniye [music] It was here that the name Aladdin became a living thing. Every day, Ben Golab and his team fed [music] 1:25:44 1 saat 25 dakika 44 saniye it data. Interest rates, housing prices, historical crashes. They [music] were teaching the machine to be afraid of everything Larry hadn't seen in 1986. 1:26:00 1 saat 26 dakika By 1992, the department inside Blackstone was no [music] longer a startup. It was a powerhouse. Larry's team was managing $17 billion. 1:26:11 1 saat 26 dakika 11 saniye They weren't just a side project anymore. They were a significant 1:26:15 1 saat 26 dakika 15 saniye [singing] engine of Blackstone's [music] 1:26:16 1 saat 26 dakika 16 saniye growth. But with success came a toxic byproduct, identity confusion. 1:26:23 1 saat 26 dakika 23 saniye Clients were getting confused. They would call [music] Blackstone looking for Larry's bond expertise or call Larry looking for Schwarzman's buyouts. But 1:26:32 1 saat 26 dakika 32 saniye the friction [music and singing] went deeper than a name. It was a war of philosophies. Schwartzman was a dealmaker. He wanted to own companies. 1:26:41 1 saat 26 dakika 41 saniye Think was a fiduciary. He [music] wanted to manage risk for others. 1:26:46 1 saat 26 dakika 46 saniye The tension was similar to having two predators in a cage too small to fit both. [music] The breaking point came 1:26:53 1 saat 26 dakika 53 saniye over equity. Larry wanted to use stock to attract and keep the original [music] eight and new talent. Schwarzman, 1:27:01 1 saat 27 dakika 1 saniye holding 50% of the firm, didn't want to dilute his [music] state. The partnership that saved Larry's career 1:27:07 1 saat 27 dakika 7 saniye was now suffocating his vision. In 1994, 1:27:10 1 saat 27 dakika 10 saniye [music] 1:27:11 1 saat 27 dakika 11 saniye they reached a deal. 1:27:15 1 saat 27 dakika 15 saniye Schwarzman agreed to sell Blackstone steak for $240 million. At the time, [music] it seemed like a win for 1:27:22 1 saat 27 dakika 22 saniye Schwarzman, a massive return on his $5 million investment. It wasn't [music] just about money. It was about the 1:27:29 1 saat 27 dakika 29 saniye spotlight. Schwarzman was the king of Wall Street. But his subtenant, Larry Frink, was the one the New York Times 1:27:36 1 saat 27 dakika 36 saniye wanted to interview. But for Larry, it [music] was the price of freedom. 1:27:41 1 saat 27 dakika 41 saniye Schwarzman would later call selling Black Rockck the worst [music] mistake of my career. For Larry, the divorce was the moment the training wheels came off. 1:27:51 1 saat 27 dakika 51 saniye He was no longer under anyone's umbrella. He was the [music] CEO of an independent firm. Now he just had to prove he could survive the coming storm [music] of the late '90s. 1:28:11 1 saat 28 dakika 11 saniye It is 2008. The financial world was experiencing a heart attack. The financial smoothies that mortgage back 1:28:19 1 saat 28 dakika 19 saniye securities Larry had helped create 30 years earlier had turned into [music] a global poison. Banks didn't know what 1:28:26 1 saat 28 dakika 26 saniye they owned, and more importantly, they didn't know what their neighbors owned. Trust had evaporated. 1:28:33 1 saat 28 dakika 33 saniye When the US government realized the economy was on the brink of a total blackout, they didn't call Goldman Sachs. They didn't call JP Morgan. While 1:28:43 1 saat 28 dakika 43 saniye the CEOs of Layman and Merrill were begging for government checks, Larry Frink was the one the government called to write the checks. 1:28:52 1 saat 28 dakika 52 saniye He was the only titan left standing with a clean balance sheet. 1:28:56 1 saat 28 dakika 56 saniye The United States government didn't just seek advice, it delegated responsibility. 1:29:02 1 saat 29 dakika 2 saniye Black Rockck was tasked with valuing assets [music] no one understood, managing risks no one could measure and stabilizing markets that were collapsing in real time. 1:29:14 1 saat 29 dakika 14 saniye This wasn't a bailout. It was an outsourcing of core sovereign functions. 1:29:18 1 saat 29 dakika 18 saniye [music] 1:29:19 1 saat 29 dakika 19 saniye For the first time, a private firm played a central role in maintaining global financial stability, not through political authority, [music] but through technical capability. 1:29:30 1 saat 29 dakika 30 saniye From that moment on, power was no longer just about laws and institutions. It was about who had the tools to see the system clearly. 1:29:40 1 saat 29 dakika 40 saniye Black Rockck was hired to manage the toxic waste of the crisis. They became the official cleaner for the US 1:29:47 1 saat 29 dakika 47 saniye government, managing $130 billion of troubled assets. 1:29:54 1 saat 29 dakika 54 saniye Suddenly, Larry Frink was the most powerful man in the room, acting as an adviser to the president and the treasury. 1:30:02 1 saat 30 dakika 2 saniye But while he was saving the system, he saw a once-ina-lifetime opportunity to dominate it. In the middle of the 1:30:09 1 saat 30 dakika 9 saniye carnage, Barclay's bank in the UK was desperate for cash. They needed to sell their crown jewel, a division called 1:30:17 1 saat 30 dakika 17 saniye Barclay's Global Investors, [music] which included a revolutionary product called Eyesshares. 1:30:23 1 saat 30 dakika 23 saniye Eyesshares represented passive investing [music] ETFs that track the whole market rather than trying to beat it. It was 1:30:31 1 saat 30 dakika 31 saniye the ultimate expression of Larry's philosophy. Stop betting on stars and start owning the system. It was a massive $13.5 billion gamble. 1:30:42 1 saat 30 dakika 42 saniye If the markets continue to fall, deal could sink Black Rockck. But Larry knew something the others didn't. He had 1:30:50 1 saat 30 dakika 50 saniye looked into the eye of Aladdin, and Aladdin told him that the bottom was near. With the acquisition of Eyesshares 1:30:57 1 saat 30 dakika 57 saniye in 2009, Black Rockck doubled its size overnight. They weren't just a bond shop anymore. They were now the largest money 1:31:05 1 saat 31 dakika 5 saniye manager on the planet. They had gone into the crisis as a respected firm. 1:31:11 1 saat 31 dakika 11 saniye They came out of it as the shadow government of finance. 1:31:21 1 saat 31 dakika 21 saniye By 2012, [music] Larry Frink had built the machine. He had the assets, the data, and the influence. But he realized that being 1:31:30 1 saat 31 dakika 30 saniye king of Wall Street wasn't enough. He wanted to [music] change the way the world did business. Every January, a 1:31:37 1 saat 31 dakika 37 saniye ritual began that would send tremors through boardrooms from Detroit to Frankfurt. Larry started writing letters. They weren't just annual 1:31:46 1 saat 31 dakika 46 saniye reports. They were the Black Rockck Manifestos. 1:31:52 1 saat 31 dakika 52 saniye In 2018, he dropped a bomb. He told the world's CEOs that if they [music] wanted Black Rockck's money, they had to prove 1:32:00 1 saat 32 dakika they served a social purpose. He wasn't just asking for profits. He was asking for a soul. He was mainstreaming ESG, 1:32:10 1 saat 32 dakika 10 saniye environmental, [music] social, and governance. And he was doing it with a $10 trillion hammer. But 1:32:17 1 saat 32 dakika 17 saniye Larry's new gospel [music] didn't sit well with everyone. By 2021, the Golden Boy was finding himself in the middle of a two-front war. 1:32:28 1 saat 32 dakika 28 saniye The ESG debate was never cultural. It was economic. At its core, ESG was about 1:32:35 1 saat 32 dakika 35 saniye risk management, anticipating regulation, climate disruption, and social instability. 1:32:42 1 saat 32 dakika 42 saniye For Black Rockck, ignoring those factors wasn't [music] neutral. It was dangerous. But when capital begins to price the future, it also begins to 1:32:51 1 saat 32 dakika 51 saniye shape it. That's why the backlash was so intense. 1:32:55 1 saat 32 dakika 55 saniye To the left, Larry was a hypocrite. They called him [music] a greenwasher because Black Rockck still held billions in oil 1:33:02 1 saat 33 dakika 2 saniye and gas stocks. To the right, he was a globalist villain who was using other people's money to push a radical 1:33:09 1 saat 33 dakika 9 saniye environmental agenda. The backlash turned into a full-scale political assault. 1:33:17 1 saat 33 dakika 17 saniye State treasurers in Florida, Texas, and Mississippi began pulling billions out of Black Rockck. They accused Larry of 1:33:24 1 saat 33 dakika 24 saniye boycotting energy and violating his duty to investors. 1:33:29 1 saat 33 dakika 29 saniye For the first time, the man who had mastered risk found himself in a risk he couldn't calculate, the culture war. 1:33:40 1 saat 33 dakika 40 saniye He told a crowd in Aspen that he was ashamed to be a part of the debate. He even stopped using the term ESG altogether, calling it weaponized. 1:33:50 1 saat 33 dakika 50 saniye He had tried to become the conscience of capitalism. Instead, it became its most controversial target. But even [music] 1:33:57 1 saat 33 dakika 57 saniye as the politicians shouted and the protesters marched, the assets kept growing. [music] 1:34:05 1 saat 34 dakika 5 saniye Because in the end, whether you loved him or hated him, you couldn't escape the machine he built. [music] 1:34:20 1 saat 34 dakika 20 saniye January 2026, [music] the number flashes on a terminal in Black Rockck's Hudson Yards headquarters. $14 [music] trillion. 1:34:31 1 saat 34 dakika 31 saniye It is a number so vast it defies human comprehension. 1:34:35 1 saat 34 dakika 35 saniye If Larry Frink's assets [music] under management were a country's GDP, it would be the third largest economy on Earth, surpassed only [music] by the United States and China. 1:34:46 1 saat 34 dakika 46 saniye But as Larry looks out from his office, he isn't looking at stock tickers. He is looking at the very bones of civilization. 1:34:58 1 saat 34 dakika 58 saniye In 2024, Larry made his final most aggressive pivot. He realized that the next decade won't be one with [music] 1:35:06 1 saat 35 dakika 6 saniye bits on a screen, but with atoms in the ground. With the 12.5 billion acquisition [music] of global infrastructure partners, Larry 1:35:15 1 saat 35 dakika 15 saniye signaled the end of the old Wall Street era. Larry saw the AI revolution [music] coming. But he didn't buy the chip 1:35:22 1 saat 35 dakika 22 saniye makers. He bought the power plants that feed the chips. 1:35:32 1 saat 35 dakika 32 saniye But every empire [music] faces the same inevitable question. Succession. 1:35:40 1 saat 35 dakika 40 saniye For years, Wall Street has whispered about who could possibly replace the [music] man who is Black Rockck. Names 1:35:47 1 saat 35 dakika 47 saniye like Rob Capito, Mark Weirman, and Jennifer Johnson swirl in the press. But the truth is more complex. Larry hasn't 1:35:55 1 saat 35 dakika 55 saniye [music] just built a company. He's built an organism. A system where Aladdin, now a very sophisticated AI entity, handles 1:36:03 1 saat 36 dakika 3 saniye the risk while a legion [music] of 20,000 employees, executes the vision. Aladdin is no longer just a calculator. 1:36:11 1 saat 36 dakika 11 saniye It is a predictive engine that runs millions of [music] simulations every second, anticipating everything from a war in the Middle East to a crop failure in Brazil. 1:36:22 1 saat 36 dakika 22 saniye Some call him the king of the world, others call him the shadow architect. 1:36:27 1 saat 36 dakika 27 saniye But if [music] you ask Larry, he'll tell you he's still that kid from the Van Noise shoe store, just trying to make sure that the maths add up. 1:36:38 1 saat 36 dakika 38 saniye He took the greatest humiliation of his life and turned it into a shield for the global economy. 1:36:45 1 saat 36 dakika 45 saniye He taught the world that profit without a plan is just a gamble and that in the dark, the man with the flashlight is king. 1:36:55 1 saat 36 dakika 55 saniye There is one financial question the system [music] cannot answer. What happens when everyone measures risk the 1:37:01 1 saat 37 dakika 1 saniye same way? When models converge. When assumptions [music] align. When diversity of judgment disappears. 1:37:09 1 saat 37 dakika 9 saniye A system optimized for stability can become fragile. Not because [music] it is wrong but because it leaves no room for the unexpected. 1:37:18 1 saat 37 dakika 18 saniye When the supervisor becomes invisible and the rules are embedded [music] in code, accountability becomes harder to 1:37:24 1 saat 37 dakika 24 saniye locate, the system works until it doesn't. And that's why Blackprop [music] isn't just a shareholder in your 1:37:32 1 saat 37 dakika 32 saniye company. They are the landlord of your power plant, the owner of your airport, the architect of your retirement. It is 1:37:40 1 saat 37 dakika 40 saniye a level of centralized influence the world [music] has never seen in a private individual. Lawrence D.Fin didn't just build [music] a bank. He built the unblinking eye of capitalism. 1:37:53 1 saat 37 dakika 53 saniye And as the world moves into the era of AI, climate shift, and global restructuring, one thing is certain. 1:38:00 1 saat 38 dakika Black Rockck will be there, watching, calculating, and growing. 1:39:28 1 saat 39 dakika 28 saniye It's just a small plastic brick. 1:39:31 1 saat 39 dakika 31 saniye Lightweight, simple, unchanged since 1958. 1:39:38 1 saat 39 dakika 38 saniye And yet, it has built entire universes. 1:39:42 1 saat 39 dakika 42 saniye Lego constructions [music] truly take us back to childhood. 1:39:47 1 saat 39 dakika 47 saniye But they stay with us throughout [music] our entire lives. From bedrooms to boardrooms, from playgrounds to [music] Hollywood, Lego has shaped generations. 1:39:58 1 saat 39 dakika 58 saniye When I design something from scratch, I start with an idea that occurs to me at any time of day. 1:40:04 1 saat 40 dakika 4 saniye I try to build it with Lego and see what I come up with. In a global toy market worth more than $120 billion, LEGO 1:40:13 1 saat 40 dakika 13 saniye stands alone. A single company controlling nearly one in every $10 spent on toys worldwide. 1:40:21 1 saat 40 dakika 21 saniye Lego holds a leading position worldwide, recognized above all for its playability. 1:40:27 1 saat 40 dakika 27 saniye What if the most beloved toy in the world almost didn't exist? 1:40:33 1 saat 40 dakika 33 saniye [music] 1:40:33 1 saat 40 dakika 33 saniye Discover the incredible journey of a small, struggling carpentry shop. The dared to dream bigger than anyone [music] thought possible. 1:40:42 1 saat 40 dakika 42 saniye This is the untold story of the visionary who built Lego. 1:40:48 1 saat 40 dakika 48 saniye Transforming simple wooden bricks [music] into a multibillion dollar empire and forever changing how we play. 1:40:57 1 saat 40 dakika 57 saniye But none of this began with billiondoll charts or cinematic universes. It began with a carpenter with a vision. 1:41:06 1 saat 41 dakika 6 saniye In a tiny Danish village, one man had a dream. Building toys out of scraps of wood. 1:41:22 1 saat 41 dakika 22 saniye Ole Kirk Christensen was born in 1891 in western [music] Denmark, a place defined by silence, soil, and hard work. 1:41:33 1 saat 41 dakika 33 saniye He grew up poor, like most children in the Jutland countryside. 1:41:37 1 saat 41 dakika 37 saniye But he learned the value of craftsmanship early. When you made something, it had to last. 1:41:45 1 saat 41 dakika 45 saniye He apprenticed as a carpenter. It was not a really glamorous work, but meticulous, honest, a craft that matched Ola's character and manners. 1:41:57 1 saat 41 dakika 57 saniye Ola traveled through Denmark, Germany, and Norway. Everywhere he went, he left a reputation. Precise, patient, relentless. 1:42:08 1 saat 42 dakika 8 saniye In 1916, [music] Ole returned home and bought a workshop in a place that barely existed on the 1:42:14 1 saat 42 dakika 14 saniye map. Bund. No shops, no train station, 1:42:18 1 saat 42 dakika 18 saniye [music] 1:42:19 1 saat 42 dakika 19 saniye just a handful of families trying to survive the Danish winds. Don't worry, I'm fine. I'm fine. But 8 years later, disaster struck. 1:42:28 1 saat 42 dakika 28 saniye Oh. Oh. Oh no. 1:42:30 1 saat 42 dakika 30 saniye In 1924, a fire tore through his workshop. Oh god, no. Please, no. Oh my god. Everything burned. 1:42:38 1 saat 42 dakika 38 saniye tools, wood, orders, and a lifetime of savings, [music] all gone. 1:42:46 1 saat 42 dakika 46 saniye But Olair didn't quit. He rebuilt and rebuilt bigger than before. Not because 1:42:52 1 saat 42 dakika 52 saniye it was safe, but because he refused to let Billand disappear into the wind. Then came the [music] Great Depression. 1:43:01 1 saat 43 dakika 1 saniye Houses weren't being built. Doors weren't being ordered. Bills weren't being paid. 1:43:08 1 saat 43 dakika 8 saniye Olair had workers depending on him, families depending on him. So, he did something unexpected. He began crafting 1:43:17 1 saat 43 dakika 17 saniye small wooden toys. They were simple, durable, and beautiful. 1:43:24 1 saat 43 dakika 24 saniye Locals mocked [music] him. A grown man making toys for children. You'll never survive. 1:43:31 1 saat 43 dakika 31 saniye But Ola believed that play and fun was a serious business. 1:43:36 1 saat 43 dakika 36 saniye In 1934, he held a contest to name the new toy company. He chose a short word, 1:43:43 1 saat 43 dakika 43 saniye Lego. It was not only a simple idea, but a philosophy and a promise. 1:43:51 1 saat 43 dakika 51 saniye He hung a sign in the workshop. Only the best is [music] good enough. It wasn't marketing. It was his identity. 1:44:02 1 saat 44 dakika 2 saniye [panting] 1:44:03 1 saat 44 dakika 3 saniye Oh god, not again. 1:44:04 1 saat 44 dakika 4 saniye In 1942, Ola faced another fire. This time it was bigger, [music] more devastating. Every blueprint, every toy, every dream he had turned into smoke. 1:44:18 1 saat 44 dakika 18 saniye But he had built himself the hardship. 1:44:21 1 saat 44 dakika 21 saniye And once more, he rebuilt the factory stronger than the two previous ones. 1:44:27 1 saat 44 dakika 27 saniye [music] 1:44:28 1 saat 44 dakika 28 saniye In 1947, at the worst economic moment, Ola made the riskiest choice of his life. He spent more than twice the 1:44:37 1 saat 44 dakika 37 saniye company's annual profits on a strange new machine, one that worked not with wood, but with plastic. 1:44:45 1 saat 44 dakika 45 saniye Retailers hated plastic. Parents distrusted it. But Ola saw something they didn't. Precision, repeatability, 1:44:54 1 saat 44 dakika 54 saniye and possibilities. Endless possibilities. 1:44:58 1 saat 44 dakika 58 saniye Only two years later, in 1949, LEGO released the first plastic bricks of its history. They didn't click. They 1:45:07 1 saat 45 dakika 7 saniye weren't perfect, but they were the beginning. 1:45:17 1 saat 45 dakika 17 saniye The idea was good, but Ola and his team face setbacks while designing the bricks that had cemented Lego's identity 1:45:24 1 saat 45 dakika 24 saniye through the years. The plastic bricks didn't grip. This was a major problem for a building set because buildings 1:45:32 1 saat 45 dakika 32 saniye collapsed. Towers fell in front of their eyes. Apparently, Lego wasn't created to 1:45:39 1 saat 45 dakika 39 saniye build. And then in 1958, everything changed. 1:45:45 1 saat 45 dakika 45 saniye Unlike 20 years ago, LEGO today allows us to build many more things because they have released more realistic colors and shapes. 1:45:56 1 saat 45 dakika 56 saniye In the past, the pieces were mostly square. Today, there is a much wider variety of shapes, including more rounded elements, which allow us to 1:46:05 1 saat 46 dakika 5 saniye create more ergonomic forms, ones that more closely resemble the kinds of buildings and structures we see in everyday life. 1:46:14 1 saat 46 dakika 14 saniye Engineers at LEGO perfected a simple but ingenious solution. hollow tubes inside the brick. 1:46:22 1 saat 46 dakika 22 saniye Paired with the studs on top, the geometry created what LEGO calls clutch power. Not too tight, not too loose, just [music] perfect. 1:46:33 1 saat 46 dakika 33 saniye This was not just an adjustment or improvement. It was the birth of what we know [music] today as a Lego brick. The 1:46:40 1 saat 46 dakika 40 saniye brick that today can still be used with the modern ones. 1:46:45 1 saat 46 dakika 45 saniye the brick that was the foundation of a company [music] that still makes history today. That same year, Lego filed the patent. 1:46:54 1 saat 46 dakika 54 saniye They had something worth protecting, [music] and OA knew that sooner or later, it would be replicated. 1:47:02 1 saat 47 dakika 2 saniye It was January the 28th, 1958 when the patent was filed. Later that year, Ole Christensen [music] passed away. 1:47:12 1 saat 47 dakika 12 saniye and savvy. He never lived to see how far his brick would travel. 1:47:26 1 saat 47 dakika 26 saniye After his father died, Godfred Kerr Christensen stepped in. He wasn't inheriting the company. He was 1:47:34 1 saat 47 dakika 34 saniye inheriting a philosophy, one he had been raised with. [music] His father wasn't around anymore, but the original spirit 1:47:41 1 saat 47 dakika 41 saniye of Lego lived on in the second Christensen [music] generation. But he also had something to add. 1:47:49 1 saat 47 dakika 49 saniye Godfred believed Lego should be more than toys. It should be a system. A system [music] where every piece 1:47:56 1 saat 47 dakika 56 saniye connected with every other piece across every set. 1:48:00 1 saat 48 dakika This created a language of creativity and possibilities. And a single idea changed everything. Suddenly, LEGO 1:48:09 1 saat 48 dakika 9 saniye wasn't a collection of toys, but an entire universe. 1:48:14 1 saat 48 dakika 14 saniye The company began to grow far beyond its original frontiers. 1:48:18 1 saat 48 dakika 18 saniye During the 1960s and [music] '7s, Lego expanded across Europe, Germany, Sweden, 1:48:25 1 saat 48 dakika 25 saniye the UK. Band, once a small village, became a global hub of play. Lego then 1:48:32 1 saat 48 dakika 32 saniye built its own airport, factories, and distribution centers. In the world of construction toys, we know that Lego isn't the only brand around. 1:48:43 1 saat 48 dakika 43 saniye What Lego provides is a quality product. 1:48:48 1 saat 48 dakika 48 saniye Maybe one part is wrong for every 10,000 or 100,000 items. And if you are missing an item from a box, or if it is faulty, 1:48:56 1 saat 48 dakika 56 saniye the company's after sales service will not question the fact that you are missing a part. 1:49:04 1 saat 49 dakika 4 saniye And then the magic happened. 1:49:08 1 saat 49 dakika 8 saniye Lego introduced something no toy company had done at scale. Fully themed worlds. 1:49:14 1 saat 49 dakika 14 saniye Space town castles. 1:49:18 1 saat 49 dakika 18 saniye Children weren't just building structures anymore. They were building stories. 1:49:24 1 saat 49 dakika 24 saniye In 1978, LEGO released its most iconic invention [music] since the brick, the minifigure. 1:49:31 1 saat 49 dakika 31 saniye It had a simple face, hands shaped like a sea, and feet made to stand on studs. 1:49:38 1 saat 49 dakika 38 saniye A tiny character that let kids project [music] themselves into entire universes. Stories now had heroes and Lego had a heartbeat. 1:49:48 1 saat 49 dakika 48 saniye In the late 1970s, [music] Lego was already run by the third Christensen generation. Ole's grandson 1:49:55 1 saat 49 dakika 55 saniye [music] killed began shaping the company into the global powerhouse we know today. 1:50:01 1 saat 50 dakika 1 saniye He did so by creating more sophisticated lines, bringing in new universes, technic brought mechanics, pirates 1:50:10 1 saat 50 dakika 10 saniye brought adventure, and trains brought motion. By the late 20th century, the global toy market was becoming [music] 1:50:17 1 saat 50 dakika 17 saniye massive. Tens of billions of dollars a year worth. 1:50:22 1 saat 50 dakika 22 saniye The United States [music] spent more on toys than any country on Earth. And China produced most of them, nearly 3/4 of the world's total. 1:50:32 1 saat 50 dakika 32 saniye In this booming landscape, Lego wasn't just another toy. It was [music] the toy. 1:50:45 1 saat 50 dakika 45 saniye By the late 1990s, Lego was flying high. 1:50:49 1 saat 50 dakika 49 saniye It had become one of the most admired companies in Europe. A creative powerhouse built on the philosophy of imagination and creation. We're not 1:50:58 1 saat 50 dakika 58 saniye focused only on childhood, but on something that has quite literally built us, pun intended, shaping our personalities through Lego from an early 1:51:06 1 saat 51 dakika 6 saniye age. [music] Those memories became a foundation we've kept building on over time. 1:51:13 1 saat 51 dakika 13 saniye [music] 1:51:13 1 saat 51 dakika 13 saniye That's why exhibitions like this bring us straight back to childhood. The audience here is very diverse, but once people walk in, they all become the boy or girl they once were. 1:51:24 1 saat 51 dakika 24 saniye But it's not all gold that glitters. 1:51:27 1 saat 51 dakika 27 saniye Under the surface, something dangerous was creeping in. The toy market was changing fast. Children were spending 1:51:35 1 saat 51 dakika 35 saniye more [music] and more time with video games and early computer entertainment. 1:51:39 1 saat 51 dakika 39 saniye Sony's PlayStation, Nintendo, and Hasbro's electronic toys [music] were capturing attention. And LEGO, 1:51:46 1 saat 51 dakika 46 saniye determined not to fall behind, expanded too far, too fast. 1:51:51 1 saat 51 dakika 51 saniye Throughout the 1990s, LEGO began introducing thousands of completely new pieces. Specialized parts [music] that 1:51:58 1 saat 51 dakika 58 saniye not only worked in one set, a single year could bring more than 350 new designs. Each of them costing tens of 1:52:07 1 saat 52 dakika 7 saniye thousands of dollars in steel machining and precision engineering. 1:52:13 1 saat 52 dakika 13 saniye In 2002, Lego had more than 12,000 active elements. The system of play, once 1:52:20 1 saat 52 dakika 20 saniye simple and universal, was becoming chaotic and difficult to follow. LEGO also tried [music] becoming a lifestyle brand. New ventures appeared everywhere. 1:52:31 1 saat 52 dakika 31 saniye Clothing lines, theme parks, homegoods, cartoon series, even watches and sneakers. 1:52:38 1 saat 52 dakika 38 saniye But these projects drained resources without reinforcing the core product. 1:52:42 1 saat 52 dakika 42 saniye the brick. And between 1999 [music] and 2003, LEGO sales collapsed. 1:52:50 1 saat 52 dakika 50 saniye During these years, the company went from doubledigit growth to [music] struggling. And by 2003, the company was 1:52:58 1 saat 52 dakika 58 saniye losing the equivalent of $1 million [music] a day. In a global toy market still worth more than $70 billion US 1:53:05 1 saat 53 dakika 5 saniye [music] 1:53:06 1 saat 53 dakika 6 saniye at the time, Lego, once the king of the toy box, was only a few steps [music] away from bankruptcy. 1:53:13 1 saat 53 dakika 13 saniye Times were dark, but a spark of genius appeared. In 1999, LEGO signed its first 1:53:20 1 saat 53 dakika 20 saniye ever licensing deal with no other than Lucasfilm. 1:53:25 1 saat 53 dakika 25 saniye The timing was perfect. Star Wars Episode 1 was about to hit theaters. 1:53:31 1 saat 53 dakika 31 saniye Hype was global and the first Lego Star Wars sets were instant hits. Not just with children, with adults. Collectors 1:53:40 1 saat 53 dakika 40 saniye lined up to buy the X-wing, the Snowspeeder, or the first Millennium Falcon. For the first time in LEGO's 1:53:47 1 saat 53 dakika 47 saniye history, adults, including those in their 30s and 40s, were buying sets for themselves. 1:53:54 1 saat 53 dakika 54 saniye The adult fan of Lego community is getting bigger. This is because Lego is not the same as it was 20 or 30 years ago. 1:54:03 1 saat 54 dakika 3 saniye Before, Lego was only seen as a toy to play with when it was cold and you were indoors. 1:54:11 1 saat 54 dakika 11 saniye Today, Lego is much more than a toy. 1:54:13 1 saat 54 dakika 13 saniye It's used to create logos to design dynamic group activities. And it also represents a shift in how we see it. 1:54:21 1 saat 54 dakika 21 saniye years ago, if you said you played with Lego or built Lego, you almost had to explain yourself that you were at home playing with little figures making up battles. What we do today is different. 1:54:32 1 saat 54 dakika 32 saniye We come together as a community of adults and Lego has recognized that. 1:54:38 1 saat 54 dakika 38 saniye That's why more and more products are now designed specifically for adults, more complex to build, and also more expensive. 1:54:49 1 saat 54 dakika 49 saniye This kid [music] demographic would later become one of LEGO's most profitable segments. More licenses followed Harry 1:54:57 1 saat 54 dakika 57 saniye Potter, [music] Spider-Man, Batman, Indiana Jones, and later the newest Marvel Cinematic Universe. 1:55:05 1 saat 55 dakika 5 saniye Even though LEGO learned that [music] storytelling sells, in 2004, losses were mounting and survival was uncertain. 1:55:13 1 saat 55 dakika 13 saniye And then the company made [music] a radical decision. 1:55:17 1 saat 55 dakika 17 saniye For the first time in its history, the company appointed [music] a CEO from outside the Christensen family, Jurgen Victor, 1:55:25 1 saat 55 dakika 25 saniye a 35-year-old [music] former McKenzie consultant. He was calm, precise, analytical, 1:55:33 1 saat 55 dakika 33 saniye and brutally honest. His diagnosis was simple. Lego had forgotten what [music] made it Lego. 1:55:42 1 saat 55 dakika 42 saniye Kutto cut the number of unique elements by nearly 50%. He sold off the theme parks. He shut down unprofitable 1:55:51 1 saat 55 dakika 51 saniye production facilities. [music] He centralized supply chains, standardized materials, and brought back discipline 1:55:58 1 saat 55 dakika 58 saniye to the system. But more important, he put the brick back at the center of the company. 1:56:08 1 saat 56 dakika 8 saniye This turnaround didn't happen in isolation. The global toy industry was undergoing a seismic change. China was 1:56:16 1 saat 56 dakika 16 saniye producing nearly 75% of the world's toys, being the largest manufacturing consolidation in toy history. 1:56:24 1 saat 56 dakika 24 saniye Meanwhile, the United States had become the single largest consumer, responsible for nearly onethird of the global toy spending. 1:56:34 1 saat 56 dakika 34 saniye By 2005, the toy market was worth close to 80 billion US. But it was brutally competitive as well. 1:56:44 1 saat 56 dakika 44 saniye Seasonality [music] was extreme. Nearly half of the annual toy sales occurred in just 3 months [music] from October to December. 1:56:53 1 saat 56 dakika 53 saniye Companies lived or died by Christmas. 1:56:56 1 saat 56 dakika 56 saniye Mattel was battling declining Barbie sales. Hasbro was betting its future on Transformers and board game reinventions. 1:57:04 1 saat 57 dakika 4 saniye Electronics were eating market share across every age group. In this scenario, LEGO rebuilt and refocused and 1:57:13 1 saat 57 dakika 13 saniye then began rising above all of them. 1:57:22 1 saat 57 dakika 22 saniye Between 2008 and 2015, LEGO entered a new era, a renaissance driven by design, 1:57:29 1 saat 57 dakika 29 saniye [music] storytelling, digital engagement, and adult passion. 1:57:35 1 saat 57 dakika 35 saniye The company launched the ultimate collector series, producing the largest, most [music] detailed models in toy history. 1:57:43 1 saat 57 dakika 43 saniye Lego architecture brought landmarks to coffee tables. [music] Modular buildings turned living rooms into miniature cities, and adults were 1:57:52 1 saat 57 dakika 52 saniye no longer hiding their Lego hobby, but embracing it. My story with Lego began in the early 90s when I was a small child. 1:58:01 1 saat 58 dakika 1 saniye I started playing but then I stopped for a while. This is what most of us want to do when we are teenagers to do other 1:58:08 1 saat 58 dakika 8 saniye hobbies and spend less time playing with Lego. 1:58:14 1 saat 58 dakika 14 saniye After that, when I was in my early 20s, I started collecting Lego. I met people from the Valencian community and founded Valre. 1:58:24 1 saat 58 dakika 24 saniye That eventually led me to a television show where I took part and won. From there, companies began approaching me to develop projects. 1:58:35 1 saat 58 dakika 35 saniye At first, this hadn't even [music] occurred to me. 1:58:39 1 saat 58 dakika 39 saniye But I started to see a growing demand, whether it was building a corporate kit, like a transport company's truck [music] or even a company's logistics headquarters. 1:58:49 1 saat 58 dakika 49 saniye This market opened up a professional path for me. 1:58:53 1 saat 58 dakika 53 saniye It supports me financially, but more importantly, it's deeply rewarding. 1:58:58 1 saat 58 dakika 58 saniye Many of these projects challenge me to build things I would never choose on my own. 1:59:04 1 saat 59 dakika 4 saniye But once a challenge is set, build this, my mind immediately starts collecting ideas, figuring out how to shape them 1:59:11 1 saat 59 dakika 11 saniye and bring the project to life in the best possible way. 1:59:18 1 saat 59 dakika 18 saniye The adult [music] fans of Lego skyrocketed. forums, conventions, fan events, engineering clubs. A global 1:59:26 1 saat 59 dakika 26 saniye movement emerged. By 2014, adults accounted for nearly 1/3 [music] of LEGO sales. 1:59:34 1 saat 59 dakika 34 saniye To anyone who thinks Lego is only for children, I'd say come and see the exhibition. 1:59:40 1 saat 59 dakika 40 saniye See what we're capable of creating with Lego pieces and how imagination develops in both children and adults. 1:59:49 1 saat 59 dakika 49 saniye Children work within certain limits and see things differently, but adults with a wider range of colors, shapes, and 1:59:57 1 saat 59 dakika 57 saniye ways to use the pieces can explore just how much is possible. 2:00:02 2 saat 2 saniye It was a radical shift in the economics of play. [music] And then came the cultural explosion. 2:00:09 2 saat 9 saniye In 2014, The Lego Movie shattered expectations, earning nearly $500 million US [music] at the box office. 2:00:19 2 saat 19 saniye What started as a toy was now pop culture. By the mid 2010s, Lego was the world's most valuable toy 2:00:27 2 saat 27 saniye company, even surpassing [music] Mattel, Hasbro, and every other competitor. 2:00:33 2 saat 33 saniye The brick [music] that started it all was no longer just a product. It was a global icon. 2:00:44 2 saat 44 saniye The LEGO Group stands today as one of the most efficient, [music] profitable, and culturally influential toy companies on Earth. Its factories run with near perfect precision. 2:00:55 2 saat 55 saniye Its design teams develop thousands of prototypes each year. Its supply chain delivers billions of bricks that must 2:01:02 2 saat 1 dakika 2 saniye all fit together flawlessly across decades. 2:01:07 2 saat 1 dakika 7 saniye In a global toy market worth roughly $120 billion a year, Lego commands 2:01:14 2 saat 1 dakika 14 saniye nearly 9% of all worldwide toy sales. No other toy brand, not Barbie, not Marvel 2:01:21 2 saat 1 dakika 21 saniye figures, not Nintendo merchandise, maintains such consistency across continents, genders, and generations. 2:01:30 2 saat 1 dakika 30 saniye And unlike most toy companies that outsource manufacturing, LEGO controls a significant portion of its own 2:01:36 2 saat 1 dakika 36 saniye production with major hubs in Denmark, Hungary, Mexico, China, and the Czech Republic. 2:01:44 2 saat 1 dakika 44 saniye This vertical integration reduces risk, stabilizes quality, and protects one of the most important values in the company's DNA, precision. 2:01:54 2 saat 1 dakika 54 saniye Every Lego brick must be manufactured with tolerances thinner than a strand of hair. If the clutch is too tight, the 2:02:02 2 saat 2 dakika 2 saniye model breaks. If it's too loose, towers collapse. Across billions of pieces, perfection is not an [music] ambition. 2:02:12 2 saat 2 dakika 12 saniye It is an engineering reality for LEGO. 2:02:16 2 saat 2 dakika 16 saniye This level of detail gives the company one of the highest brand trust ratings in the world. Parents know the bricks will last. 2:02:24 2 saat 2 dakika 24 saniye Adults know the sets will impress. 2:02:26 2 saat 2 dakika 26 saniye Collectors know the investment will hold value. 2:02:30 2 saat 2 dakika 30 saniye The modern toy market is a machine of impulse, tradition, celebration, and nostalgia. 2:02:37 2 saat 2 dakika 37 saniye In 2025, global spending on toys approaches $120 billion, nearly double what it was two 2:02:45 2 saat 2 dakika 45 saniye decades earlier. The United States remains the world's [music] largest consumer, accounting for roughly onethird of global sales. A typical 2:02:55 2 saat 2 dakika 55 saniye American household with children may [music] spend $300 to $400 per child per year on toys. This is more than five times the global [music] average. 2:03:06 2 saat 3 dakika 6 saniye Europe forms the second largest block with strong purchasing [music] power in Germany, the United Kingdom, and France. 2:03:14 2 saat 3 dakika 14 saniye Asia-Pacific is rapidly growing, especially in [music] China, South Korea, and Japan, driven by rising middle classes and urban lifestyles. 2:03:24 2 saat 3 dakika 24 saniye But the most important shift of the last decade is not geographic, it is demographic. [laughter] 2:03:37 2 saat 3 dakika 37 saniye Adults, once considered irrelevant to [music] the toy industry, are now one of the most powerful forces. This growing 2:03:45 2 saat 3 dakika 45 saniye segment, commonly called the kid market, now represents between 25 and 30% of all toy purchases worldwide. 2:03:54 2 saat 3 dakika 54 saniye Adults buy toys for nostalgia, [music] for stress relief, for display, for identity. 2:04:01 2 saat 4 dakika 1 saniye Lego is the undisputed champion of this movement. 2:04:05 2 saat 4 dakika 5 saniye Unlike other hobbies, Lego gives me a sense of calm. 2:04:12 2 saat 4 dakika 12 saniye It lets me take ideas from my mind, bring them to life, think them through, and simply enjoy the process. Right now, 2:04:20 2 saat 4 dakika 20 saniye I'm trying to instill that in my son to enjoy himself, to learn to see colors and shapes, and to understand that with imagination, anything is possible. 2:04:30 2 saat 4 dakika 30 saniye Its premium sets, Technic Hypercars, [music] Star Wars Ultimate Collector Series, iconic landmarks, regularly 2:04:38 2 saat 4 dakika 38 saniye exceed prices of $30,500, even $800. 2:04:43 2 saat 4 dakika 43 saniye They sell out within hours. They hold aftermarket values like fine collectibles. This adult segment has 2:04:51 2 saat 4 dakika 51 saniye reshaped the entire financial landscape of the company. It provides stability when children's trends shift. It creates 2:04:59 2 saat 4 dakika 59 saniye recurring revenue from loyal fans, and it strengthens LEGO's position as a crossgenerational brand, something few toy companies have ever achieved. 2:05:11 2 saat 5 dakika 11 saniye Seasonality still dictates much of the global toy market. Every year, nearly half of all toy sales occur between 2:05:18 2 saat 5 dakika 18 saniye October and December. Companies live or die by holiday forecasting, inventory strategy, and shipment timing. But LEGO 2:05:28 2 saat 5 dakika 28 saniye has become the exception. Adult collectors buy year round. Digital experiences drive sales outside the 2:05:36 2 saat 5 dakika 36 saniye holiday season. Licensed launches create anticipation even in slow quarters. 2:05:42 2 saat 5 dakika 42 saniye LEGO has effectively freed itself or at least partially from the seasonal dependency that has defined the toy industry for over a century. 2:05:51 2 saat 5 dakika 51 saniye The brick is physical, tangible, mechanical. But LEGO's success in the 21st century extends into digital 2:06:00 2 saat 6 dakika worlds. Star Wars, Batman, Marvel. These games defined an entire generation of 2:06:07 2 saat 6 dakika 7 saniye familyfriendly titles. They sold tens of millions of copies. They introduced humor, storytelling, and simplicity to a medium often dominated by complexity. 2:06:20 2 saat 6 dakika 20 saniye For many children born after the year 2000, Lego was not discovered in a toy box, but on a screen. The cinematic leap 2:06:29 2 saat 6 dakika 29 saniye came in 2014 when the Lego movie premiered to global acclaim. It earned nearly half a billion dollars. Most 2:06:37 2 saat 6 dakika 37 saniye importantly, it reframed Lego as a cultural idea, not a product. The film taught a global audience that creativity 2:06:45 2 saat 6 dakika 45 saniye matters, that imperfection is beautiful, that building and rebuilding are not failures, they are the process of play. 2:06:54 2 saat 6 dakika 54 saniye Lego Batman expanded the concept. Lego Ninjago created an entirely new generation of fans and Lego Masters on 2:07:03 2 saat 7 dakika 3 saniye television turned building into a competitive art form. 2:07:07 2 saat 7 dakika 7 saniye The brand had moved beyond toys, [music] beyond stories, beyond bricks. It had become part of the cultural grammar of the 21st century. 2:07:23 2 saat 7 dakika 23 saniye Long before STEM became a global movement, Lego was already teaching children how to think like engineers. In 2:07:30 2 saat 7 dakika 30 saniye the 1990s, LEGO Mindstorms [music] introduced programmable robotics to students around the world. Later sets, 2:07:39 2 saat 7 dakika 39 saniye we do Spike Prime, Boost, brought coding, sensors, and motors into classrooms and homes. Today, LEGO 2:07:47 2 saat 7 dakika 47 saniye Education works with governments, schools, and universities to bring hands-on learning to millions [music] of students. The philosophy is simple. 2:07:57 2 saat 7 dakika 57 saniye Children learn best through play. This approach shapes future engineers, designers, and problem solvers. It helps 2:08:05 2 saat 8 dakika 5 saniye [music] children experiment in ways that textbooks cannot. And it continues Olirk's belief that play is not a 2:08:12 2 saat 8 dakika 12 saniye distraction [music] from learning, but the foundation of it. 2:08:17 2 saat 8 dakika 17 saniye In a world increasingly focused on sustainability, [music] from my experience, what makes Lego different from other construction toys is its growing commitment to inclusion. 2:08:27 2 saat 8 dakika 27 saniye In recent years, LEGO has actively embraced people with different abilities. For example, by including figures in wheelchairs and releasing 2:08:35 2 saat 8 dakika 35 saniye sets in Braille. These are things most other brands simply don't offer, but LEGO does. 2:08:41 2 saat 8 dakika 41 saniye In addition, LEGO is strongly committed to the environment. 2:08:45 2 saat 8 dakika 45 saniye They're producing more and more pieces using recycled plastic and replacing plastic packaging [music] with paper to reduce waste, something other brands simply don't do. 2:08:57 2 saat 8 dakika 57 saniye Lego faces a unique challenge. Its bricks are made to last forever. A blessing for creativity, but a concern 2:09:05 2 saat 9 dakika 5 saniye in an era of plastic waste. In response, LEGO has invested hundreds of millions of dollars into developing more sustainable materials. 2:09:14 2 saat 9 dakika 14 saniye Plant-based polyethylene is already used for leaves and trees. Recycled [music] PT prototypes continue to advance. 2:09:23 2 saat 9 dakika 23 saniye Recycled PET prototypes continue to advance. 2:09:27 2 saat 9 dakika 27 saniye New polymer engineering aims to create bricks [music] as durable as ABS without the environmental cost. 2:09:36 2 saat 9 dakika 36 saniye This transition [music] is not simple. A Lego brick must interlock with perfect precision. A fraction of a millimeter can make the 2:09:44 2 saat 9 dakika 44 saniye [music] difference between wonder and frustration. 2:09:48 2 saat 9 dakika 48 saniye But the mission is clear. A toy that lasts [music] forever should also protect the world it is played in. Play 2:09:55 2 saat 9 dakika 55 saniye is not a luxury. [music] Play is exploration. Play is curiosity. 2:10:01 2 saat 10 dakika 1 saniye Play is the earliest form of human creativity. 2:10:05 2 saat 10 dakika 5 saniye From wooden ducks in a small Danish workshop to interlocking bricks that span generations 2:10:12 2 saat 10 dakika 12 saniye to movies, video games, robotics, and global fan communities. LEGO has remained loyal to a simple truth. When 2:10:21 2 saat 10 dakika 21 saniye we build, we grow. When we imagine, we expand. When we play, we become more human. 2:10:35 2 saat 10 dakika 35 saniye More than a century ago, a carpenter rebuilt his workshop after a fire. He rebuilt [music] it again after another. 2:10:44 2 saat 10 dakika 44 saniye Not because it was easy, but because he believed in the power of making things and in the power [music] of play. Today, 2:10:52 2 saat 10 dakika 52 saniye billions of creations have risen from that belief. Cities, castles, spaceships, 2:11:00 2 saat 11 dakika dreams that exist nowhere else but in the minds of the people who build them. 2:11:05 2 saat 11 dakika 5 saniye Lego is not perfect. It has faced crises, challenges, [screaming] and impossible decisions. But it endures 2:11:14 2 saat 11 dakika 14 saniye through war, through technological revolutions, through economic storms. Because imagination always endures. 2:11:23 2 saat 11 dakika 23 saniye And as long as there are hands reaching for bricks, as long as there are minds ready to create, the legacy of Ole Ker Christensen will continue. 2:11:34 2 saat 11 dakika 34 saniye Every [music] dream starts with a single piece. 2:13:06 2 saat 13 dakika 6 saniye Jensen Hang the Software Moat. June 18th, 2024. 2:13:14 2 saat 13 dakika 14 saniye For a brief historic moment, the world had a new king. 2:13:19 2 saat 13 dakika 19 saniye [music] Jensen Huang, the co-founder and CEO of Nvidia, stood at the peak of a $3.4 trillion mountain. 2:13:29 2 saat 13 dakika 29 saniye Analysts whispered that he wasn't just leading a company. He was leading the first entity [music] destined for a $4 trillion valuation. 2:13:41 2 saat 13 dakika 41 saniye But to understand the man in the leather jacket, you cannot look at the triumph. You must look at the fear. 2:13:49 2 saat 13 dakika 49 saniye Behind the 250% revenue jumps and the soldout age 100 backlogs lies a leader obsessed with the cyclical trap. 2:14:01 2 saat 14 dakika 1 saniye In the 60-year history of semiconductors, [music] giants like Texas Instruments, Intel, and Samsung 2:14:08 2 saat 14 dakika 8 saniye have all held the crown only to see it slip away. 2:14:14 2 saat 14 dakika 14 saniye Jensen's mission is simple. Break the cycle before it breaks him. 2:14:22 2 saat 14 dakika 22 saniye Flashback to September 1996. 2:14:25 2 saat 14 dakika 25 saniye The golden era of the internet is dawning for everyone else but for Nvidia. It is a death nail. 2:14:34 2 saat 14 dakika 34 saniye Their first chip, the NV1, is a technical ghost rejected by Microsoft's DirectX. 2:14:42 2 saat 14 dakika 42 saniye Jensen stands before a dwindling team and delivers the most famous mantra in Silicon Valley history. 2:14:50 2 saat 14 dakika 50 saniye We have exactly 30 days of oxygen left. We are 30 days from bankruptcy. 2:14:58 2 saat 14 dakika 58 saniye How does a man go from cleaning toilets in a Kentucky reform school to controlling the foundational layer of the global AI economy? 2:15:08 2 saat 15 dakika 8 saniye From a red leather booth at a Denny's to a legal showdown in the US Supreme Court over the very intellectual honesty of his empire. 2:15:18 2 saat 15 dakika 18 saniye This is not just a story of silicon and software. 2:15:22 2 saat 15 dakika 22 saniye This is the chronicle of the man who decided to manufacture intelligence itself. 2:15:28 2 saat 15 dakika 28 saniye This is Jensen Hang, the architect of the digital brain. 2:15:35 2 saat 15 dakika 35 saniye Chapter 1. Forged in the chaos, Nvidia was not born from abundance. Its 2:15:44 2 saat 15 dakika 44 saniye DNA was forged in the raw fires of survival. 2:15:49 2 saat 15 dakika 49 saniye Jen's son Huang arrived in the United States as a young migrant, but his destination wasn't an elite prep school. 2:15:58 2 saat 15 dakika 58 saniye Due to a clerical misunderstanding by his parents, [music] he was sent to Onida Baptist Institute in rural Kentucky, a place that at the 2:16:07 2 saat 16 dakika 7 saniye time functioned more as a reform school for troubled youths than a traditional academy. 2:16:14 2 saat 16 dakika 14 saniye At 9 years old, the future CEO of one of the world's most valuable companies wasn't coding. He was cleaning the 2:16:22 2 saat 16 dakika 22 saniye toilets of [music] 150 teenagers every single afternoon. 2:16:27 2 saat 16 dakika 27 saniye In his personal transcripts, Jensen reflects on this with a chilling stoicism. I didn't complain. I just learned to work hard. 2:16:37 2 saat 16 dakika 37 saniye Bad boy learned the first law of accelerated computing decades before it existed. For a system to be efficient, 2:16:45 2 saat 16 dakika 45 saniye it must be able to process chaos under extreme pressure. 2:16:51 2 saat 16 dakika 51 saniye By 15, Jensen was the most efficient dishwasher and waiter at a Denny's in Portland. I was incredibly shy, [music] 2:16:59 2 saat 16 dakika 59 saniye he admits. But the chaos of the kitchen forced me out of my shell. 2:17:05 2 saat 17 dakika 5 saniye It is no coincidence that Nvidia was founded in 1993 inside a booth at that very same restaurant chain. 2:17:14 2 saat 17 dakika 14 saniye While the [music] world saw the dawn of the PC as an office tool for spreadsheets, Jensen, Chris Mahovski, and Curtis Pium saw a fatal weakness. 2:17:26 2 saat 17 dakika 26 saniye In 1993, [music] Intel's generalpurpose CPU was hitting a physical wall. If the 2:17:34 2 saat 17 dakika 34 saniye future of computing was visual and immersive, the traditional serial architecture would become the bottleneck of human progress. 2:17:43 2 saat 17 dakika 43 saniye With only $40,000 in startup capital, they founded Nvidia to chase a ghost, accelerated computing. 2:17:52 2 saat 17 dakika 52 saniye They bet on a market the rest of the industry dismissed as a niche for toys, video games. Before Jensen, [music] 2:18:00 2 saat 18 dakika video games were the ultimate technological flywheel. 2:18:04 2 saat 18 dakika 4 saniye He knew that if you could master the massive realtime [music] rendering of pixels, you could eventually simulate reality itself. 2:18:13 2 saat 18 dakika 13 saniye But before they could reach that glory, they had to survive their first massive technical abyss, the NV1. 2:18:30 2 saat 18 dakika 30 saniye By 1995, Nvidia's first massive bet, the NV1 chip, was ready to conquer the 2:18:37 2 saat 18 dakika 37 saniye market. But Jensen Huang had made a catastrophic technical gamble. 2:18:43 2 saat 18 dakika 43 saniye At a time when the industry was undecided, he bet on quadratic texture mapping, a method that used curved surfaces to create 3D images. 2:18:53 2 saat 18 dakika 53 saniye It was mathematically intelligent, [music] but it was a lonely path. 2:18:58 2 saat 18 dakika 58 saniye The industry hammer dropped when Microsoft released its first DirectX 2:19:02 2 saat 19 dakika 2 saniye [music] 2:19:02 2 saat 19 dakika 2 saniye API. Microsoft chose triangles, not quads, as the universal language for PC gaming. 2:19:10 2 saat 19 dakika 10 saniye This decision rendered Nvidia's technology instantly [music] obsolete. 2:19:16 2 saat 19 dakika 16 saniye The NV1 wasn't just a failure, it was a dead end. The company was bleeding cash, 2:19:22 2 saat 19 dakika 22 saniye and as Jensen famously put it, they were staring at exactly 30 days of oxygen. 2:19:31 2 saat 19 dakika 31 saniye Nvidia's only lifeline was a strategic contract with the Japanese giant Sega to build the graphics engine for the Sega 2:19:38 2 saat 19 dakika 38 saniye Saturn. But Jensen was trapped in a moral and business dilemma. 2:19:44 2 saat 19 dakika 44 saniye He knew that if they continued building the chip for Sega using Nvidia's flawed quad technology, Sega would lose the 2:19:52 2 saat 19 dakika 52 saniye console war to Sony's PlayStation and Nvidia would eventually perish anyway. 2:19:58 2 saat 19 dakika 58 saniye In an act of intellectual honesty, 2:19:59 2 saat 19 dakika 59 saniye [music] 2:20:00 2 saat 20 dakika or as many at the time called corporate suicide, Jensen flew to Japan. He sat across from Shy Chiro Inimiri, the CEO of Sega, and told him the brutal truth. 2:20:14 2 saat 20 dakika 14 saniye Our technology is on the wrong path. If we finish this project, you will produce an inferior product. 2:20:22 2 saat 20 dakika 22 saniye Jensen asked for the impossible. He asked Sega to terminate the contract, but to pay the remaining $5 million 2:20:30 2 saat 20 dakika 30 saniye anyway. If you don't [music] pay us, Jensen pleaded. Nvidia will cease to exist tomorrow. 2:20:37 2 saat 20 dakika 37 saniye To the astonishment of the tech world, Idlimiri son agreed. He didn't pay for a working chip. He paid for Jensen's integrity. 2:20:48 2 saat 20 dakika 48 saniye That $5 million was the most expensive oxygen in history. 2:20:53 2 saat 20 dakika 53 saniye To make it last, Jensen had to fire half of his workforce. These weren't just employees. [music] They were friends who 2:21:00 2 saat 21 dakika had shared the Denny's dream. This trauma institutionalized a permanent state of emergency at Nvidia. 2:21:09 2 saat 21 dakika 9 saniye With the remaining team, Jensen funneled every cent into the Reval 128. They 2:21:15 2 saat 21 dakika 15 saniye abandoned quads and embraced Microsoft's triangles with a vengeance. When it 2:21:21 2 saat 21 dakika 21 saniye launched in 1997, the Revo 128 was 400% faster than anything [music] else on the market. 2:21:30 2 saat 21 dakika 30 saniye It was a dive catch of epic proportions. 2:21:32 2 saat 21 dakika 32 saniye [music] Nvidia was no longer just a survivor. It had become a hunter. 2:21:39 2 saat 21 dakika 39 saniye But as Jensen looked at the horizon, he saw 70 rivals waiting to kill him. The war was only beginning. 2:21:54 2 saat 21 dakika 54 saniye The success of the Reva 128 was a dive catch, but it placed Nvidia in the middle of a slaughter house. By 1997, 2:22:04 2 saat 22 dakika 4 saniye there were over 70 companies fighting for the soul of the 3D graphics market. 2:22:10 2 saat 22 dakika 10 saniye It was a commodity war where price cutting was the only weapon for most. 2:22:15 2 saat 22 dakika 15 saniye Jensen Hang realized that if Nvidia played by the industry's rules, they would eventually be ground into dust. 2:22:23 2 saat 22 dakika 23 saniye He decided to break the laws of time. 2:22:27 2 saat 22 dakika 27 saniye The industry standard for developing a new chip was 18 to 24 months. Following the steady beat of Moore's law, Jensen 2:22:35 2 saat 22 dakika 35 saniye gathered [music] his engineers and imposed a suicidal mandate. Nvidia would release a brand new groundbreaking architecture every 6 months. 2:22:47 2 saat 22 dakika 47 saniye It was a strategy of relentless execution. 2:22:50 2 saat 22 dakika 50 saniye By the time a competitor like 3dfx or S3 could react to one Nvidia chip, Jensen 2:22:57 2 saat 22 dakika 57 saniye had already launched two more. This forced the competition into a permanent state of obsolescence. 2:23:04 2 saat 23 dakika 4 saniye To achieve this, Nvidia had to reinvent its internal engineering, [music] running multiple design teams in 2:23:11 2 saat 23 dakika 11 saniye parallel. A massive financial risk that pushed the company to the edge of its operational capacity. In 1999, the war 2:23:20 2 saat 23 dakika 20 saniye reached its climax. Nvidia released the GeForce 256. 2:23:27 2 saat 23 dakika 27 saniye Jensen didn't just market it as a faster card. He coined a term that would redefine computing history, the GPU, 2:23:36 2 saat 23 dakika 36 saniye graphics processing unit. This wasn't just [music] branding. Technically, the GeForce 256 2:23:43 2 saat 23 dakika 43 saniye moved the transform and lighting calculations, the most heavy mathematical lifting of 3D off the CPU 2:23:51 2 saat 23 dakika 51 saniye and onto the chip itself. It was the birth of a new era. 2:23:56 2 saat 23 dakika 56 saniye This performance leap was so massive that Nvidia secured the prestigious contract for the original Microsoft 2:24:03 2 saat 24 dakika 3 saniye Xbox, receiving a crucial $200 million advance. 2:24:09 2 saat 24 dakika 9 saniye The 6-month cycle worked. By the early 2000s, the 70 competitors had been reduced to just [music] two, Nvidia and ATI. 2:24:19 2 saat 24 dakika 19 saniye In a final act of dominance, Nvidia acquired the assets of its former idol and arch rival 3dfx in 2000. 2:24:29 2 saat 24 dakika 29 saniye Jensen had cleared the board. He was the undisputed king of gaming. But at the 2:24:36 2 saat 24 dakika 36 saniye very moment of his greatest triumph, he began to look at the higherformance computing market. He realized that the 2:24:43 2 saat 24 dakika 43 saniye GPU's massive parallel math could do more than just draw pixels. It could solve the world's most complex problems. 2:24:51 2 saat 24 dakika 51 saniye The seeds of CUDA and the $10 billion gamble were being planted. 2:25:04 2 saat 25 dakika 4 saniye By 2006, Nvidia was the undisputed king of [music] the gaming world. But Jensen Huang was restless. He realized that the 2:25:13 2 saat 25 dakika 13 saniye same parallel [music] processing power that rendered pixels for World of Warcraft could be used to solve the world's most complex mathematical problems. 2:25:23 2 saat 25 dakika 23 saniye He launched [music] CUDA, compute unified device architecture. It was a declaration of war against the CPUcentric [music] world. 2:25:32 2 saat 25 dakika 32 saniye The goal was simple yet insane. 2:25:35 2 saat 25 dakika 35 saniye Transform every [music] NVIDIA GPU into a generalpurpose supercomput. 2:25:41 2 saat 25 dakika 41 saniye But this decision came [music] with a staggering cost. Jensen mandated that every single GPU Nvidia manufactured 2:25:49 2 saat 25 dakika 49 saniye from the high-end [music] workstation cards to the cheapest laptop chips must include the extra transistors [music] and hardware logic to support CUDA. 2:25:59 2 saat 25 dakika 59 saniye Wall Street was horrified. 2:26:03 2 saat 26 dakika 3 saniye For nearly a decade, Nvidia spent billions, [music] estimated at over $10 billion in cumulative R&D on a software platform 2:26:12 2 saat 26 dakika 12 saniye that almost no one was using. Profit margins, [music] which once sat comfortably high, were sacrificed at the altar of this vision. 2:26:22 2 saat 26 dakika 22 saniye Analysts mocked the strategy, [music] calling it the bridge to nowhere. During the 2008 financial crisis, [music] 2:26:30 2 saat 26 dakika 30 saniye Nvidia's market cap plummeted and the company was once again staring into the abyss. 2:26:37 2 saat 26 dakika 37 saniye But Jensen wasn't just building hardware. [music] He was building a software moat. He sent Nvidia engineers 2:26:44 2 saat 26 dakika 44 saniye to universities around the world, helping professors [music] teach parallel programming using CUDA. 2:26:51 2 saat 26 dakika 51 saniye He was seeding [music] the ground. While competitors like Intel and AMD focused on making faster chips, Jensen [music] was building an entire language. 2:27:02 2 saat 27 dakika 2 saniye By the time a developer learned CUDA, they were locked in. Switching to a competitor wouldn't [music] just mean buying a new chip. It would mean rewriting millions of lines of code. 2:27:15 2 saat 27 dakika 15 saniye Year after year, Jensen defended CUDA in boardrooms and earning calls. He practiced [music] what he calls 2:27:22 2 saat 27 dakika 22 saniye long-term commitment to a vision, even when the data didn't yet support it. He was waiting for a killer app for accelerated computing. 2:27:32 2 saat 27 dakika 32 saniye He didn't know what it would be. [music] But he knew that as data grew exponentially, the serial processing of the CPU would eventually [music] fail. 2:27:41 2 saat 27 dakika 41 saniye The silence of the Cuda winter was about to be broken. 2:27:45 2 saat 27 dakika 45 saniye In a lab at the University of Toronto, a PhD student named Alex Kepski was about to feed a neural network called Alexet into those Nvidia GPUs. 2:27:57 2 saat 27 dakika 57 saniye The big bang of artificial intelligence was seconds away, and Jensen Huang was the only person on Earth who had already built the engine to power it. 2:28:15 2 saat 28 dakika 15 saniye The year was 2012. 2:28:17 2 saat 28 dakika 17 saniye While the world saw just another academic competition, Jensen Huang saw the spark that would ignite a global revolution. 2:28:26 2 saat 28 dakika 26 saniye A neural network called AlexNet, powered by NVIDIA GPUs, crushed the competition 2:28:32 2 saat 28 dakika 32 saniye in image recognition. It was the big bang of deep learning. 2:28:38 2 saat 28 dakika 38 saniye Jensen didn't just celebrate, he pivoted the entire company. He realized that the $10 billion gamble on CUDA had finally 2:28:47 2 saat 28 dakika 47 saniye found its soul, artificial [music] intelligence. 2:28:51 2 saat 28 dakika 51 saniye This pivot transformed Nvidia from a graphics card company into the foundational engine of the world's most powerful data centers. 2:29:01 2 saat 29 dakika 1 saniye Jensen's vision was no longer about drawing pixels. It was about generative [music] AI. 2:29:07 2 saat 29 dakika 7 saniye By the time Chat GPT launched in late 2022, Nvidia [music] didn't just have a head start. They were the only ones at the starting line. 2:29:19 2 saat 29 dakika 19 saniye Jensen acted with a speed that [music] terrified his competitors. He didn't just wait for orders. He re-engineered Nvidia's entire road map. 2:29:29 2 saat 29 dakika 29 saniye In 2016, he personally delivered the first Nvidia [music] DGX1, the world's first AI supercomputer in a 2:29:37 2 saat 29 dakika 37 saniye box to a then small nonprofit called Open AAI. He was very clear [music] this will change the world. 2:29:48 2 saat 29 dakika 48 saniye Technically, this period was about specialization. 2:29:52 2 saat 29 dakika 52 saniye Nvidia began adding tensor cores to its chips. These weren't for graphics. 2:29:57 2 saat 29 dakika 57 saniye [music] 2:29:57 2 saat 29 dakika 57 saniye They were designed specifically for the deep learning math that powers neural networks. 2:30:02 2 saat 30 dakika 2 saniye Nvidia was no longer just making [music] a faster graphics card. It was building a specialized brain. 2:30:09 2 saat 30 dakika 9 saniye By 2017, [music] the momentum was unstoppable. 2:30:13 2 saat 30 dakika 13 saniye Every major tech giant was building AI labs and they all had one thing in common. They were built on [music] Nvidia's stack. 2:30:21 2 saat 30 dakika 21 saniye This was the era when the software mode became a fortress. Thousands of researchers [music] were now writing their doctoral thesis on CUDA. 2:30:31 2 saat 30 dakika 31 saniye If a competitor wanted to challenge Nvidia, they wouldn't just need a [music] better chip. They would have to convince the world's brightest minds to forget everything they had learned. 2:30:43 2 saat 30 dakika 43 saniye But as the AI revolution took hold, an unexpected shadow emerged. [music] A new craze called Bitcoin and Ethereum began to consume Nvidia's supply. 2:30:54 2 saat 30 dakika 54 saniye To the world, Nvidia looked invincible, but internally Jensen [music] was wary. 2:31:01 2 saat 31 dakika 1 saniye Jensen knew that every bubble eventually bursts. 2:31:04 2 saat 31 dakika 4 saniye This period of explosive accidental growth from crypto miners was creating a shadow over the company's true mission, 2:31:12 2 saat 31 dakika 12 saniye setting the stage for a highstakes legal battle over corporate transparency and a financial storm that would test [music] the very foundations of his leadership. 2:31:27 2 saat 31 dakika 27 saniye In 2018, Nvidia was [music] riding a wave that looked like a miracle, but felt like a mirage. The explosion of 2:31:35 2 saat 31 dakika 35 saniye cryptocurrency mining had created an insatiable hunger for GeForce cards. 2:31:41 2 saat 31 dakika 41 saniye To the outside world, Nvidia's revenue was reaching historic [music] heights. 2:31:46 2 saat 31 dakika 46 saniye However, beneath the surface, a dangerous ambiguity was growing. [music] Jensen Huang insisted that the growth was driven by a gaming renaissance, 2:31:55 2 saat 31 dakika 55 saniye [music] but the reality was more volatile. The mirage evaporated in late 2018. 2:32:02 2 saat 32 dakika 2 saniye The crypto winter arrived and the demand for mining chips vanished overnight. 2:32:08 2 saat 32 dakika 8 saniye Nvidia was left with a massive surplus of inventory and the market's reaction [music] was brutal. The company's stock price plummeted by 28% in a single day. 2:32:20 2 saat 32 dakika 20 saniye The invincible architect of AI was suddenly facing a crisis of [music] credibility. 2:32:26 2 saat 32 dakika 26 saniye This financial collapse ignited a highstakes legal battle that would eventually reach the steps of the US Supreme Court. 2:32:33 2 saat 32 dakika 33 saniye A group of institutional investors filed a class action lawsuit alleging that Jensen Hang had deliberately [music] misled the market. The core of the case 2:32:43 2 saat 32 dakika 43 saniye rested on a single devastating word, ci. The intent [music] to deceive. 2:32:50 2 saat 32 dakika 50 saniye The accusation was sharp. Investors claimed [music] that internal Nvidia reports clearly showed over a billion dollars in revenue attributed to gamers 2:32:59 2 saat 32 dakika 59 saniye was actually coming from crypto [music] miners. 2:33:02 2 saat 33 dakika 2 saniye Jensen fought back, defending his intellectual honesty and arguing that the expert opinions used against him were nothing [music] more than speculation. 2:33:12 2 saat 33 dakika 12 saniye This battle known as petition number 23-970 became a landmark moment for Silicon 2:33:19 2 saat 33 dakika 19 saniye Valley, questioning how much a CEO must disclose when their technology accidentally [music] conquers a market they didn't intend to lead. 2:33:28 2 saat 33 dakika 28 saniye While lawyers argued in Washington, Jensen was already looking past the wreckage. He didn't let the legal storm [music] or the inventory crisis slowed 2:33:37 2 saat 33 dakika 37 saniye down his ultimate plan. He doubled down on the data center, acquiring Melanox 2:33:42 2 saat 33 dakika 42 saniye [music] 2:33:43 2 saat 33 dakika 43 saniye for $7 billion to control the highways between his chips. 2:33:47 2 saat 33 dakika 47 saniye He was preparing [music] for a world where AI wouldn't just be a research project, but the operating system of the entire planet. 2:33:56 2 saat 33 dakika 56 saniye The storm of 2018 had been a warning. 2:33:58 2 saat 33 dakika 58 saniye The era of generative AI was about to provide [music] the answer. 2:34:08 2 saat 34 dakika 8 saniye By 2022, the world had changed. The launch of Chat GPT signaled the arrival of the 2:34:15 2 saat 34 dakika 15 saniye generative AI era, and Nvidia was the only company prepared to power it. 2:34:22 2 saat 34 dakika 22 saniye But as Jensen Huang stood on the brink of total market dominance, a new wall was built, not by a competitor, but by 2:34:30 2 saat 34 dakika 30 saniye the [music] US government. Washington imposed strict export controls on high-end AI chips. For Nvidia, the stakes [music] were astronomical. 2:34:40 2 saat 34 dakika 40 saniye According to the geographical revenue data, [music] China accounted for approximately 20% to 25% of the company's total business. 2:34:50 2 saat 34 dakika 50 saniye Overnight, [music] Jensen had to navigate a geopolitical minefield, redesigning chips specifically to comply with regulations [music] 2:34:58 2 saat 34 dakika 58 saniye while trying to keep his most important market from slipping away. 2:35:03 2 saat 35 dakika 3 saniye Jensen's answer to the geopolitical and technical pressure was the Blackwall architecture. If the H100 was a spark, 2:35:12 2 saat 35 dakika 12 saniye Blackwell was a sun. Packing an incredible 208 billion transistors, [music] it delivered up to 30 times the 2:35:20 2 saat 35 dakika 20 saniye performance of its predecessor for certain AI tasks. 2:35:24 2 saat 35 dakika 24 saniye But Blackwell represented a deeper strategic shift. Nvidia was no longer just [music] a chipmaker. 2:35:32 2 saat 35 dakika 32 saniye Jensen was now building entire AI factories. 2:35:36 2 saat 35 dakika 36 saniye By integrating Melanox networking [music] technology, he controlled the highways that allowed thousands of chips to talk to each other as [music] if they were a single giant brain. 2:35:47 2 saat 35 dakika 47 saniye This system on a cluster approach meant that even if a competitor produced a faster individual chip, they couldn't compete with the sheer efficiency of the Nvidia ecosystem. 2:35:58 2 saat 35 dakika 58 saniye The financial results [music] were staggering. By early 2024, Nvidia's data center revenue had surged to over 47 2:36:07 2 saat 36 dakika 7 saniye [music] billion, a 217% increase in a single year. The company was [music] operating with 78.4% 2:36:16 2 saat 36 dakika 16 saniye gross margins, profit levels usually reserved for software giants, not hardware manufacturers. 2:36:23 2 saat 36 dakika 23 saniye On June 18th, 2024, Nvidia became the most valuable company on the planet. 2:36:30 2 saat 36 dakika 30 saniye Yet, even as he stood at the summit, Jensen refused to relax. He looked the 60-year history of [music] 2:36:38 2 saat 36 dakika 38 saniye semiconductors, the rise and fall of Intel, the cycles of Samsung and TI, and he knew that being on top was the most 2:36:46 2 saat 36 dakika 46 saniye dangerous place to be. His next challenge wouldn't just be about chips. 2:36:52 2 saat 36 dakika 52 saniye It would be about giving AI a physical body. 2:37:01 2 saat 37 dakika 1 saniye In 2024, Jensen Huang had already conquered the digital world, but his eyes were fixed on a new frontier, the 2:37:08 2 saat 37 dakika 8 saniye physical one. He declared that the next wave of AI would be physical AI. 2:37:14 2 saat 37 dakika 14 saniye Intelligence that doesn't just process text [music] or images, but understands the laws of physics. 2:37:21 2 saat 37 dakika 21 saniye Everything that moves from autonomous cars [music] to humanoid robots would eventually be powered by an Nvidia brain. 2:37:29 2 saat 37 dakika 29 saniye This identifies it as the third pillar of Nvidia's future. To win this race, Jensen isn't just building chips. 2:37:38 2 saat 37 dakika 38 saniye [music] He is building the omniverse. 2:37:40 2 saat 37 dakika 40 saniye This is a digital world where robots are trained millions of times in a virtual simulation [music] before they ever step into a real factory. 2:37:50 2 saat 37 dakika 50 saniye By the time a robot starts its job, it has already lived a thousand lifetimes of experience. [music] Jensen's strategy is a total vertical 2:37:59 2 saat 37 dakika 59 saniye integration. He is transforming Nvidia into a provider of AI factories. 2:38:05 2 saat 38 dakika 5 saniye He believes that in the future, every company will have two factories, one that produces physical goods and a digital one that produces intelligence. 2:38:13 2 saat 38 dakika 13 saniye [music] 2:38:15 2 saat 38 dakika 15 saniye With the Melanox networking, high-speed highways, and the CUDA software fortress, Jensen has ensured that the entire infrastructure of this new 2:38:23 2 saat 38 dakika 23 saniye [music] industrial revolution runs on Nvidia. When asked about his legacy, Jensen doesn't talk about stock prices 2:38:31 2 saat 38 dakika 31 saniye or trillions of dollars. He talks about material sciences [music] and scientific discovery. 2:38:38 2 saat 38 dakika 38 saniye He believes AI will give humans superpowers, helping us solve [music] climate change, cure diseases, and handle the dangerous and mundane tasks 2:38:47 2 saat 38 dakika 47 saniye so we can focus on what truly makes us human, curiosity. 2:38:56 2 saat 38 dakika 56 saniye By 2025, the world had entered a state of compute geopolitics. 2:39:02 2 saat 39 dakika 2 saniye Nvidia was no longer just a company. It had become a strategic resource similar to oil or grain. The launch of the Blackwell B200 hadn't just met demand. 2:39:15 2 saat 39 dakika 15 saniye It had ignited a global scramble. 2:39:18 2 saat 39 dakika 18 saniye Nations like Japan, France, and the UAE began building sovereign AI clouds. 2:39:24 2 saat 39 dakika 24 saniye [music] Realizing that depending on a few Silicon Valley giants for intelligence was a national security risk. 2:39:31 2 saat 39 dakika 31 saniye But as 2025 progressed, a new whisper began to haunt the industry. The wall. 2:39:38 2 saat 39 dakika 38 saniye For years, AI progress relied on scaling laws. The idea that more data and more GPUs would inevitably lead to more 2:39:46 2 saat 39 dakika 46 saniye intelligence. However, in 2026, the returns are starting to diminish. Data centers are becoming so massive, they 2:39:56 2 saat 39 dakika 56 saniye require their own dedicated nuclear power plants. and the lowhanging fruit of internet data has been exhausted. 2:40:02 2 saat 40 dakika 2 saniye [music] 2:40:03 2 saat 40 dakika 3 saniye Jensen's response to the wall is typically defiant. He pivoted the industry towards synthetic data and 2:40:10 2 saat 40 dakika 10 saniye reasoning models. In 2026, Nvidia's focus has shifted from simply training 2:40:16 2 saat 40 dakika 16 saniye [music] AI to inference at scale. The goal is no longer just to build a model that knows everything, but to build a 2:40:25 2 saat 40 dakika 25 saniye system that thinks [music] through a problem for days, if necessary, using massive clusters of GPUs to reach a breakthrough. 2:40:34 2 saat 40 dakika 34 saniye The competition in 2026 has never been fiercer. Nvidia's biggest customers, Amazon, Google, and Microsoft, have 2:40:43 2 saat 40 dakika 43 saniye become its most dangerous rivals, pouring billions into their own custom AI chips to escape the NVIDIA tax. Yet, the software mode remains unreached. 2:40:55 2 saat 40 dakika 55 saniye While others build chips, Jensen is building the entire ecosystem, the networking, the libraries, and [music] the pre-trained models that make a 2:41:03 2 saat 41 dakika 3 saniye competitor's hardware feel like a relic before it even leaves the factory. 2:41:10 2 saat 41 dakika 10 saniye In this 2:41:10 2 saat 41 dakika 10 saniye [music] 2:41:10 2 saat 41 dakika 10 saniye era, Jensen Hang has become one of the world's most influential diplomat. He navigates a world where the power grid 2:41:17 2 saat 41 dakika 17 saniye is the new bottleneck and where a single shipment of chips can determine the economic future of a country. 2:41:24 2 saat 41 dakika 24 saniye The trillion dollar question of 2026 is no longer if AI will change the world, but who will own the infrastructure of that change. 2:41:39 2 saat 41 dakika 39 saniye The story of Nvidia is often told as a series of lucky breaks or inevitable triumphs. But as we look at the empire 2:41:47 2 saat 41 dakika 47 saniye Jensen [music] Huang has built, the reality is far more deliberate and far more precarious. 2:41:54 2 saat 41 dakika 54 saniye In 2026, [music] the company stands at the center of the greatest industrial shift in human history. 2:42:01 2 saat 42 dakika 1 saniye Yet for Jensen, the valuation of three, four, or 5 trillion is a lagging indicator. The true metric is [music] the oxygen. 2:42:11 2 saat 42 dakika 11 saniye Throughout his journey, from the dish pits of Denny's to the halls of the Supreme Court, Jensen has maintained a [music] philosophy of intellectual honesty. 2:42:21 2 saat 42 dakika 21 saniye He admits when the technology is wrong. 2:42:23 2 saat 42 dakika 23 saniye He pivots when the market shifts. And he invests billions when the world calls him a fall. He [music] has turned a 2:42:31 2 saat 42 dakika 31 saniye semiconductor company into a geopolitical superpower, a software fortress, and the primary architect of a 2:42:38 2 saat 42 dakika 38 saniye new form of life. [music] Critics ask if Nvidia is a bubble waiting to burst, or if the scaling laws of AI will 2:42:46 2 saat 42 dakika 46 saniye eventually hit a dead end. But Jensen doesn't operate on [music] the timeline of a stock market cycle. He operates on the timeline of human evolution. 2:42:56 2 saat 42 dakika 56 saniye He isn't just selling chips. He is selling the marginal cost of intelligence, making the most valuable 2:43:03 2 saat 43 dakika 3 saniye resource in the universe so abundant that it changes the very definition 2:43:08 2 saat 43 dakika 8 saniye [music] 2:43:09 2 saat 43 dakika 9 saniye of what is possible. 2:43:11 2 saat 43 dakika 11 saniye Jensen often says that he wakes up every morning with the same feeling he had in 1993. 2:43:17 2 saat 43 dakika 17 saniye the feeling that [music] the company is going out of business. 2:43:21 2 saat 43 dakika 21 saniye It is this productive paranoia that prevents the cyclical trap [music] that claim the giants of the past. He doesn't 2:43:28 2 saat 43 dakika 28 saniye want to be the king of a legacy. He wants to be the architect of [music] a future that hasn't even been imagined yet. 2:43:38 2 saat 43 dakika 38 saniye Run, don't walk. Either you are running for food or you are running from being food. In the era of the digital [music] 2:43:47 2 saat 43 dakika 47 saniye brain, the race has only just begun. 2:45:19 2 saat 45 dakika 19 saniye At the edge of the world, in a country with more sheep than people, one of the most powerful men in Silicon Valley 2:45:27 2 saat 45 dakika 27 saniye built an escape hatch. Not a vacation home, not a tax shelter, a contingency plan. 2:45:37 2 saat 45 dakika 37 saniye In 2011, a billionaire quietly secured citizenship in New Zealand after spending just [music] days in the 2:45:44 2 saat 45 dakika 44 saniye country. A legal backdoor, a geopolitical lifeboat deep in the rugged terrain of New 2:45:52 2 saat 45 dakika 52 saniye Zealand's South Island, Peter Teal owns a vast private estate, remote, secluded, and far from the centers of power. 2:46:02 2 saat 46 dakika 2 saniye While most billionaires buy yachts [music] or private islands feel secured something more strategic, New Zealand 2:46:10 2 saat 46 dakika 10 saniye citizenship and a vast estate in one of the [music] most remote democracies on earth. The 2:46:17 2 saat 46 dakika 17 saniye purchase price for this geopolitical insurance policy. 2:46:22 2 saat 46 dakika 22 saniye In 2011, Theel obtained New Zealand citizenship after spending just 12 days in the country over the previous 2 2:46:30 2 saat 46 dakika 30 saniye years. a process that normally requires years of residency. 2:46:37 2 saat 46 dakika 37 saniye The investment that secured this exceptional pathway, approximately $7 million in local assets [music] and business investments. 2:46:47 2 saat 46 dakika 47 saniye The centerpiece, a 477 acre estate near Lake Wanaka, purchased 2:46:54 2 saat 46 dakika 54 saniye for 13.5 million New Zealand, about $10 million. 2:47:01 2 saat 47 dakika 1 saniye When New Zealand media exposed the deal in 2017, it sparked [music] a national scandal. Hi Benedict, nice to talk to you again. 2:47:10 2 saat 47 dakika 10 saniye So when we last spoke, you told us that Peter Teal was granted citizenship after having only visited New Zealand four times for an unknown number of days 2:47:19 2 saat 47 dakika 19 saniye because the documents had that information redacted. Right. 2:47:24 2 saat 47 dakika 24 saniye Politicians called it citizenship for sale. Opposition leaders demanded investigations, 2:47:31 2 saat 47 dakika 31 saniye but Theel had already achieved his objective, a legal escape hatch in the world's most politically stable 2:47:38 2 saat 47 dakika 38 saniye democracy, [music] a geopolitical insurance policy that money can buy. 2:47:46 2 saat 47 dakika 46 saniye Why would a man who helped [music] build the digital future prepare for the collapse of the physical one? What does 2:47:53 2 saat 47 dakika 53 saniye he [music] see that others don't? Yes, it's the uh 1 Thessalonians 5:3, the uh 2:48:00 2 saat 48 dakika the the slogan of the Antichrist is peace and safety. And so, which is nothing wrong with peace and safety, but 2:48:08 2 saat 48 dakika 8 saniye uh you have to sort of imagine that it resonates very differently in a world [music] where the stakes are so absolute, where the stakes are so extreme, where the you know the 2:48:16 2 saat 48 dakika 16 saniye alternative to peace and safety is, you know, Armageddon and the destruction of all things. 2:48:25 2 saat 48 dakika 25 saniye He is one of the most polarizing [music] figures in Silicon Valley. To some, a visionary genius who saw the future 2:48:32 2 saat 48 dakika 32 saniye early. To others, the shadow financier of movements and candidates who challenged [music] liberal democratic norms. 2:48:41 2 saat 48 dakika 41 saniye This is not fear. This is strategy. 2:48:45 2 saat 48 dakika 45 saniye For decades, Peter Theel has made the same bet over and over again. Bet against consensus. bet against the 2:48:54 2 saat 48 dakika 54 saniye crowd, [music] bet against the system itself. 2:48:59 2 saat 48 dakika 59 saniye To understand why he built a fortress at the end of the earth, we have to go back to a childhood of constant displacement. 2:49:07 2 saat 49 dakika 7 saniye To a chessboard where consensus meant [music] nothing, to a company that tried to replace money and another that learned to see [music] everything. 2:49:19 2 saat 49 dakika 19 saniye But the estate is more than a [music] luxury retreat. It is a fortress designed for civilizational uncertainty. 2:49:27 2 saat 49 dakika 27 saniye Off-grid power systems, advanced security infrastructure, multiple evacuation routes [music] through the 2:49:34 2 saat 49 dakika 34 saniye mountains. Not built for comfort, built for continuity. 2:49:40 2 saat 49 dakika 40 saniye While the world debates progress, Peter Theel is preparing for a different possibility. 2:49:46 2 saat 49 dakika 46 saniye Not how to build the future, how to survive it. 2:49:54 2 saat 49 dakika 54 saniye The architect of dissident total estimated value of [music] Theo's contingency infrastructure 20 to $30 million. 2:50:05 2 saat 50 dakika 5 saniye Not for lifestyle, not for prestige, but for the day the system he helped build no longer holds. 2:50:13 2 saat 50 dakika 13 saniye He didn't build this because he panics [music] easily. He built it because he has always believed that the crowd is 2:50:19 2 saat 50 dakika 19 saniye wrong and the future belongs to those willing to stand apart from it. Every fortress begins as an idea and Peter 2:50:29 2 saat 50 dakika 29 saniye Theel has been building intellectual fortresses since he was a child. 2:50:40 2 saat 50 dakika 40 saniye Before he was a billionaire, before he funded political outsiders, before he built machines that could see 2:50:46 2 saat 50 dakika 46 saniye everything, he was a boy who never stayed in one place long enough to believe the world made sense. 2:50:54 2 saat 50 dakika 54 saniye So, he searched for a world where the rules didn't change. He found it on a chessboard. 2:51:01 2 saat 51 dakika 1 saniye To understand Peter Theel, you must understand what it means to be a permanent outsider. 2:51:08 2 saat 51 dakika 8 saniye Born in Frankfurt, West Germany, Peter Theel spent part of his early childhood in southwest Africa, now Namibia, 2:51:16 2 saat 51 dakika 16 saniye [music] 2:51:17 2 saat 51 dakika 17 saniye before growing up mainly in the United States between Ohio and California. 2:51:21 2 saat 51 dakika 21 saniye [music] 2:51:23 2 saat 51 dakika 23 saniye Before he was a teenager, he had already experienced life on multiple continents, never staying long enough to feel fully at home. 2:51:33 2 saat 51 dakika 33 saniye He didn't have a hometown. He didn't have a tribe. He only had his own mind. 2:51:39 2 saat 51 dakika 39 saniye And in that isolation, he found a language that didn't require a passport. Chess. 2:51:49 2 saat 51 dakika 49 saniye For a child who changed continents [music] before he could even make friends, the outside world was unpredictable noise. But the board, the 2:51:58 2 saat 51 dakika 58 saniye board was the only place where the rules didn't change [music] depending on the country. 2:52:05 2 saat 52 dakika 5 saniye His father, an engineer trained in a culture of precision and systems thinking, 2:52:12 2 saat 52 dakika 12 saniye passed on a belief that reality could be understood and optimized. 2:52:18 2 saat 52 dakika 18 saniye While other children sought to fit in, Peter sought the edge. He learned that the consensus of the crowd is usually a distraction. 2:52:28 2 saat 52 dakika 28 saniye If everyone is running toward the ball, you run toward where the ball is going to be. 2:52:35 2 saat 52 dakika 35 saniye Chess is the ultimate antidote to consensus. 2:52:39 2 saat 52 dakika 39 saniye In a crowd, you can hide behind a popular opinion. In chess, you are either [music] right or you are dead. 2:52:46 2 saat 52 dakika 46 saniye There is no middle ground. There is no social construction of the board. 2:52:52 2 saat 52 dakika 52 saniye He became a serious tournament chess player [music] drawn to a world where rules were fixed, outcomes were earned, and consensus [music] meant nothing. 2:53:03 2 saat 53 dakika 3 saniye Mid1 1980s Stanford University. 2:53:07 2 saat 53 dakika 7 saniye To the world this was the peak of American meritocracy. To Theel it was a factory of conformity. 2:53:16 2 saat 53 dakika 16 saniye While his classmates were debating how to change the world through activism, Theel was wondering why they all sounded exactly the same. He saw the 2:53:25 2 saat 53 dakika 25 saniye multiculturalism movement not as progress but as a new form of fundamentalism. 2:53:32 2 saat 53 dakika 32 saniye Stanford in the late 1980s was ground zero for America's culture wars, battles over multiculturalism, speech, and the purpose of higher education. 2:53:43 2 saat 53 dakika 43 saniye Field believed the university was drifting toward ideological conformity, that certain views were becoming socially, if not formally, offlimits. 2:53:54 2 saat 53 dakika 54 saniye Here his investment methodology was born. Identify what the crowd considers sacred and question it. 2:54:04 2 saat 54 dakika 4 saniye If everyone says identity diversity is the most important thing, you argue that intellectual diversity is the only thing that matters. 2:54:16 2 saat 54 dakika 16 saniye He wasn't looking for friends. He was looking to recruit others who like him did not fear being hated. 2:54:24 2 saat 54 dakika 24 saniye He founded the Stanford Review. The paper quickly became one of the most controversial publications on campus, 2:54:33 2 saat 54 dakika 33 saniye attacking what field saw as intellectual 2:54:35 2 saat 54 dakika 35 saniye [music] 2:54:36 2 saat 54 dakika 36 saniye monoculture and political group think. 2:54:39 2 saat 54 dakika 39 saniye He saw that the smartest people in the country were all competing for the same narrow prizes, thinking the same narrow thoughts. 2:54:49 2 saat 54 dakika 49 saniye He did what every top student does. He followed the track. 2:54:54 2 saat 54 dakika 54 saniye After Stanford Law, he secured a prestigious federal appalate clerkship, the kind of credential that opens every elite door in America. 2:55:05 2 saat 55 dakika 5 saniye After his clerkship, he joined Sullivan and Cromwell in [music] New York, one of the most elite law firms in the world. 2:55:12 2 saat 55 dakika 12 saniye On paper, he had reached the summit. 2:55:15 2 saat 55 dakika 15 saniye Wall Street was his great negative epiphany. 2:55:20 2 saat 55 dakika 20 saniye But from his perspective, the brightest [music] graduates in America were locked in brutal competition for careers they didn't even seem to want. 2:55:29 2 saat 55 dakika 29 saniye It looked like Renee Gerard's theory made flesh, a system where everyone desired the same prize simply because 2:55:37 2 saat 55 dakika 37 saniye everyone else did. Wall Street looked at Theo like a laboratory of mimemetic rivalry. He realized that if he won that 2:55:46 2 saat 55 dakika 46 saniye race, his prize would be becoming the man in the office next door. A copy of a copy. The day he lost the opportunity to 2:55:55 2 saat 55 dakika 55 saniye clerk for the US Supreme Court wasn't a defeat. It was his liberation. 2:56:01 2 saat 56 dakika 1 saniye He lasted less than a year. But Theo's first venture after leaving law was a humbling lesson in failure. A lesson 2:56:10 2 saat 56 dakika 10 saniye that would shape everything that came after. 2:56:15 2 saat 56 dakika 15 saniye In 1996, he launched Theel [music] Capital Management, a hedge fund focused on currency trading and macroeconomic derivatives. 2:56:27 2 saat 56 dakika 27 saniye The strategy was to make big directional bets on [music] interest rates, inflation expectations, and foreign 2:56:34 2 saat 56 dakika 34 saniye exchange movements. Initial capital raised $1 million mostly from Stanford 2:56:41 2 saat 56 dakika 41 saniye connections who believed in the chess prodigy turned lawyer turned financia. 2:56:49 2 saat 56 dakika 49 saniye The result was spectacular failure. 2:56:52 2 saat 56 dakika 52 saniye Within the first year, the fund had lost significant capital. Industry estimates suggest losses between 30 and 40% [music] of the initial investment pool. 2:57:03 2 saat 57 dakika 3 saniye Investors fled. Some demanded their remaining money back immediately. 2:57:10 2 saat 57 dakika 10 saniye The reputation among finance professionals, the people he [music] had walked away from at Sullivan and Cromwell, took a serious hit. 2:57:19 2 saat 57 dakika 19 saniye He was no longer the Stanford genius. He was just another failed trader. 2:57:26 2 saat 57 dakika 26 saniye But this failure taught him the most important lesson of his career. Competition is for losers. 2:57:34 2 saat 57 dakika 34 saniye Do not compete in crowded markets where everyone is making the same trades with [music] the same information and the same tools. 2:57:42 2 saat 57 dakika 42 saniye Wall Street was full of extremely smart people doing the same macro trades, [music] reading the same economic 2:57:50 2 saat 57 dakika 50 saniye reports, betting on the same currency movements. It was a zero someum game played by thousands of nearly identical players. 2:58:01 2 saat 58 dakika 1 saniye He needed to find a space where the rules were still being written, where being first mattered more than being 2:58:08 2 saat 58 dakika 8 saniye best, where a [music] monopoly position was still available. He needed technology. 2:58:16 2 saat 58 dakika 16 saniye And from the ashes of the capital management, a new philosophy was born. 2:58:22 2 saat 58 dakika 22 saniye If you want to create lasting value, you have to build a monopoly. This became his investing mantra and it would make him billions. 2:58:36 2 saat 58 dakika 36 saniye The [music] walked away from the firm and went back to California not to start a tech empire but to try trading then to 2:58:43 2 saat 58 dakika 43 saniye launch a hedge fund. It failed. The system he had rejected did not welcome him back as a prodigy. It treated him like a nobody. 2:58:54 2 saat 58 dakika 54 saniye That failure would become the last lesson before his real beginning. But he learned something. If you play the 2:59:02 2 saat 59 dakika 2 saniye system game as everyone else, you've already lost. 2:59:06 2 saat 59 dakika 6 saniye The chess master was [music] done with the board. He was ready to build his own. 2:59:19 2 saat 59 dakika 19 saniye So this is an ATM. What we're going to do is transform the traditional banking industry. I do not fit the picture of a banker. 2:59:28 2 saat 59 dakika 28 saniye X.com. This is Julie. 2:59:30 2 saat 59 dakika 30 saniye Raising $50 million is a matter of making a series of phone calls and the money is there. 2:59:37 2 saat 59 dakika 37 saniye I've sunk the great majority of of my net worth into [music] X.com, which is the new banking and mutual funds company on the internet that I've started. 2:59:46 2 saat 59 dakika 46 saniye December 1998, Peter Theel co-founds a company called Conffinity with Max Levchin, a brilliant 2:59:54 2 saat 59 dakika 54 saniye Ukrainian born programmer, and Luke Nosk, a fellow Stanford review illuminous. 3:00:01 3 saat 1 saniye Initial funding, $300,000 scraped together from friends, family, and fellow libertarian true believers from the Stamford days. 3:00:10 3 saat 10 saniye The original product idea, digital wallets on Palm Pilot handheld devices. 3:00:17 3 saat 17 saniye The vision was that people would beam money to each [music] other using infrared ports on the Palm Pilots 3:00:24 3 saat 24 saniye in coffee shops, at restaurants, persontoerson, bypassing banks entirely. 3:00:33 3 saat 33 saniye Total users [music] after 6 months of operation, 12 people. literally 12. 3:00:41 3 saat 41 saniye Most of them were employees and their friends testing the system. It was a complete and utter flop. The technology 3:00:50 3 saat 50 saniye worked, but nobody cared. Nobody wanted it. March 2000, Conffinity pivots hard 3:00:58 3 saat 58 saniye and launches a new feature, email-based money transfers. 3:01:03 3 saat 1 dakika 3 saniye You send money to any email address. The recipient gets a notification, [music] creates an account, and the money is there. Simple, instant, revolutionary. 3:01:14 3 saat 1 dakika 14 saniye The name of this new service, PayPal. 3:01:18 3 saat 1 dakika 18 saniye Within weeks, user growth exploded at a rate nobody had ever seen in financial services. 3:01:25 3 saat 1 dakika 25 saniye Month one, 10,000 [music] users. Month three, 100,000 users. Month 3:01:32 3 saat 1 dakika 32 saniye 6, 1 million users. Month 12, 5 million [music] users. 3:01:40 3 saat 1 dakika 40 saniye This was the fastest user adoption rate in the entire history of financial services. Faster than credit cards, 3:01:48 3 saat 1 dakika 48 saniye faster than checking accounts, faster than anything. 3:01:52 3 saat 1 dakika 52 saniye But here is what most people do not know about PayPal's growth. Here is the secret that the mythology leaves out. 3:02:01 3 saat 2 dakika 1 saniye PayPal's explosive user acquisition was not organic. It was not word of mouth. 3:02:08 3 saat 2 dakika 8 saniye It was not viral in the natural sense. 3:02:13 3 saat 2 dakika 13 saniye They literally bought their users with cash. The strategy was elegantly simple and brutally expensive. 3:02:22 3 saat 2 dakika 22 saniye Sign up for a PayPal account, get $10 deposited instantly. Refer a friend who 3:02:29 3 saat 2 dakika 29 saniye signs up gets another $10. Your friend also gets $10. Cost per acquisition 3:02:35 3 saat 2 dakika 35 saniye [music] 3:02:36 3 saat 2 dakika 36 saniye 20 to $40 per user depending on how many referrals each user [music] generated. 3:02:43 3 saat 2 dakika 43 saniye Monthly cash burn rate of peak growth 10 to 12 million [music] just vanishing into user acquisition. By 3:02:53 3 saat 2 dakika 53 saniye late 2000, PayPal was [music] spending 60 to 70 million annually just to buy users with cash incentives. 3:03:02 3 saat 3 dakika 2 saniye They were hemorrhaging money at a terrifying rate. Investors were panicking. Board members were demanding answers. 3:03:12 3 saat 3 dakika 12 saniye How long can you sustain spending $10 million a month buying users? 3:03:18 3 saat 3 dakika 18 saniye But Theo had done the mathematics. He had run the numbers obsessively. 3:03:25 3 saat 3 dakika 25 saniye Each acquired user was worth $100 to $200 in lifetime transaction fee revenue [music] through the PayPal network. They 3:03:34 3 saat 3 dakika 34 saniye were buying $100 bills for $20 [music] bills. It was either genius or insanity 3:03:41 3 saat 3 dakika 41 saniye depending on whether the math actually worked. The believed it would work. He bet everything on it. But there was a 3:03:50 3 saat 3 dakika 50 saniye problem. a major problem. Another company was doing [music] the exact same thing. X.com, a finance company founded 3:03:59 3 saat 3 dakika 59 saniye by Elon Musk with money from his Zip 2 exit and a vision for online banking that was nearly identical to PayPal's. 3:04:10 3 saat 4 dakika 10 saniye Two companies, same idea, same market, both burning massive amounts of cash at [music] completely unsustainable rates. 3:04:19 3 saat 4 dakika 19 saniye Total funding raised between both companies over $100 million. 3:04:26 3 saat 4 dakika 26 saniye Combined monthly cash burn rate over $20 million [music] time until both companies simultaneously ran out of money less than 6 months. 3:04:38 3 saat 4 dakika 38 saniye The merger was inevitable. 3:04:41 3 saat 4 dakika 41 saniye X.com [music] and Confinity merged into a single entity. The combined company kept the PayPal name because users 3:04:49 3 saat 4 dakika 49 saniye [music] had already adopted it. The brand had momentum. Elon Musk became chief executive [music] officer of the merged company for 5 months. 3:05:03 3 saat 5 dakika 3 saniye October 2000, while Elon Musk was on his honeymoon, the board of directors led by Peter Theel and other Confinity founders 3:05:12 3 saat 5 dakika 12 saniye held an emergency meeting and voted Musk out as CEO. 3:05:17 3 saat 5 dakika 17 saniye The official reason cited strategic disagreements [music] over technology platform. Musk wanted to 3:05:24 3 saat 5 dakika 24 saniye use Microsoft software. The Confinity engineers believed in Unixbased systems. 3:05:31 3 saat 5 dakika 31 saniye The actual reason Theel wanted control, full control. This was his company now. 3:05:40 3 saat 5 dakika 40 saniye Peter Theel became chief executive officer of PayPal. Elon Musk remained [music] a major shareholder, but his operational control was finished. 3:05:52 3 saat 5 dakika 52 saniye The two men, both future billionaires, both future power brokers, had their first battle. feel one. At its core, 3:06:02 3 saat 6 dakika 2 saniye PayPal ran on a simple idea that turned into a powerful engine. 3:06:07 3 saat 6 dakika 7 saniye Every time money moved, PayPal took a small cut, 2.9% plus 30 cents per transaction. If that money crossed 3:06:16 3 saat 6 dakika 16 saniye borders, [music] the fee climbed to between 2 1/2 and 4%. 3:06:21 3 saat 6 dakika 21 saniye Then there was the float, [music] the cash sitting in PayPal's accounts between payments, quietly earning interest for the company. Tiny slices repeated millions of times. 3:06:33 3 saat 6 dakika 33 saniye By 2001, the numbers told the story of a system coming to life. Every single day, 3:06:40 3 saat 6 dakika 40 saniye 5 to8 million flowed through PayPal's network. Each month, that translated into 10 to$15 million in revenue. 3:06:51 3 saat 6 dakika 51 saniye But growth at this speed came at a cost. 3:06:54 3 saat 6 dakika 54 saniye Running the system, fighting fraud, scaling infrastructure, acquiring users, was burning 20 to30 million every month. 3:07:05 3 saat 7 dakika 5 saniye The machine worked, it just wasn't profitable yet. 3:07:09 3 saat 7 dakika 9 saniye Late 2000, PayPal's data scientists discovered something crucial. 70% of all PayPal 3:07:18 3 saat 7 dakika 18 saniye transactions were happening on eBay auctions. 3:07:22 3 saat 7 dakika 22 saniye People buying and selling random items on the internet's largest marketplace were using PayPal to move money. The 3:07:30 3 saat 7 dakika 30 saniye strategic insight became immediately clear. Make PayPal the only payment method that eBay users trust completely. 3:07:40 3 saat 7 dakika 40 saniye Own that market, become indispensable. 3:07:44 3 saat 7 dakika 44 saniye The execution buyer protection guarantees that eBay's own payment system did not offer 3:07:52 3 saat 7 dakika 52 saniye instant payment transfers with no 7-day check clearing period. 3:07:59 3 saat 7 dakika 59 saniye Fraud detection algorithms that were better than credit card companies. Email notifications for every transaction. 3:08:07 3 saat 8 dakika 7 saniye Simple, clean user interface. 3:08:11 3 saat 8 dakika 11 saniye By mid 2001, the strategy was working beyond all projections. 50% of all eBay 3:08:18 3 saat 8 dakika 18 saniye auctions accepted PayPal as a payment method. PayPal was processing [music] $50 million daily in eBay related 3:08:27 3 saat 8 dakika 27 saniye transactions alone. And then eBay noticed and eBay was not happy. 3:08:35 3 saat 8 dakika 35 saniye eBay launched their own competing service called Billpoint and attempted to kill PayPal through the marketplace. 3:08:42 3 saat 8 dakika 42 saniye They promoted Billoint in search rankings. They penalized sellers who only accepted PayPal. They made it 3:08:50 3 saat 8 dakika 50 saniye harder to display the PayPal logo. It was war. PayPal's response was total war. 3:08:58 3 saat 8 dakika 58 saniye Temporarily lower transaction fees to undercut Billoint. 3:09:03 3 saat 9 dakika 3 saniye Guarantee faster money transfers than eBay could offer. Invest heavily in superior $30 million deployed in 2001 3:09:12 3 saat 9 dakika 12 saniye fraud protection. Massive marketing spending alone. 3:09:18 3 saat 9 dakika 18 saniye By early 2002, the war was over. PayPal controlled 65% of eBay's payment market. 3:09:26 3 saat 9 dakika 26 saniye Bill point [music] at barely 10%. 3:09:30 3 saat 9 dakika 30 saniye eBay executives looked at the numbers and reached a conclusion, if you cannot beat them, buy them. July 2002, 3:09:40 3 saat 9 dakika 40 saniye eBay acquires PayPal for $1.5 billion in eBay stock. 3:09:46 3 saat 9 dakika 46 saniye Peter Theal owned approximately $3.7% of PayPal at the time of the acquisition. 3:09:53 3 saat 9 dakika 53 saniye His equity stake was worth $55 million in eBay stock. After taxes, he walked away with approximately $40 million in 3:10:02 3 saat 10 dakika 2 saniye liquid wealth. At age 34, he had won his first billion dollar game. 3:10:10 3 saat 10 dakika 10 saniye But the money was not the most valuable thing he extracted from PayPal. The real value was the network, the PayPal mafia, the name they [music] gave themselves. 3:10:21 3 saat 10 dakika 21 saniye And it was not ironic. It was descriptive. The core team that Theel assembled at PayPal would go on to 3:10:29 3 saat 10 dakika 29 saniye create some of the most valuable companies in human history. Elon Musk Tesla market cap [music] $650 billion. 3:10:40 3 saat 10 dakika 40 saniye SpaceX estimated value $150 billion. 3:10:44 3 saat 10 dakika 44 saniye Reed Hoffman LinkedIn sold to Microsoft for $26 billion. 3:10:50 3 saat 10 dakika 50 saniye Steve Chen, Chad Hurley, Jawed Kareem. 3:10:54 3 saat 10 dakika 54 saniye YouTube sold to Google for $1.65 billion, now worth over 100 billion. 3:11:04 3 saat 11 dakika 4 saniye Jeremy Stoppleman and Russell Simmons, Yelp, peaked at $3 billion market cap. 3:11:11 3 saat 11 dakika 11 saniye David Saxs, Yammer, sold to Microsoft for $1.2 billion. 3:11:17 3 saat 11 dakika 17 saniye later founded Craft Ventures. Max Levchin, a firm $12 billion company, 3:11:24 3 saat 11 dakika 24 saniye also co-founded Yelp. Keith Rabo, COO of Square, partner at Founders Fund, investor in dozens of unicorns. 3:11:37 3 saat 11 dakika 37 saniye Roloff Bofer, partner at Seoia Capital, led investments in Instagram, YouTube, Tumblr, MongoDB, Eventbrite. 3:11:48 3 saat 11 dakika 48 saniye Total value created by the PayPal mafia across all their companies, conservatively estimated at over $200 3:11:57 3 saat 11 dakika 57 saniye billion in combined market capitalization. 3:12:02 3 saat 12 dakika 2 saniye Field's ownership stakes across this extended network through direct investments and fund positions estimated at 2 to4 billion. 3:12:12 3 saat 12 dakika 12 saniye This was not just a company that got acquired. [music] This was the creation of the most powerful business cartel in Silicon Valley history. 3:12:24 3 saat 12 dakika 24 saniye But what made PayPal different was not the technology. Not really. The technology was impressive but not miraculous. 3:12:33 3 saat 12 dakika 33 saniye What made PayPal different was the culture, the religion of extreme meritocracy. 3:12:40 3 saat 12 dakika 40 saniye Theo's hiring criteria were brutally specific. 3:12:45 3 saat 12 dakika 45 saniye One raw intelligence, high test scores, ability to solve complex puzzles, proof 3:12:52 3 saat 12 dakika 52 saniye you could think better than everyone else. [music] Two, intensity. Are you willing to work 100hour weeks? 3:13:01 3 saat 13 dakika 1 saniye Are you willing to sacrifice everything else in your life for the mission? 3:13:05 3 saat 13 dakika 5 saniye Three, [music] missionary zeal. Do you actually believe we are changing the world or are you here for a paycheck? 3:13:14 3 saat 13 dakika 14 saniye Four, loyalty to the tribe. Will you protect the other members? Will you put the group above yourself? 3:13:23 3 saat 13 dakika 23 saniye Average employee age at PayPal 25 years old. Average work week [music] 80 to 100 hours. 3:13:32 3 saat 13 dakika 32 saniye Office culture libertarian, anti-regulation, contrarian, anti-establishment. 3:13:39 3 saat 13 dakika 39 saniye They called themselves the mafia specifically because loyalty mattered more than credentials, 3:13:48 3 saat 13 dakika 48 saniye more than degrees, more than previous experience. Theel's operating principle stated explicitly and repeatedly, 3:13:57 3 saat 13 dakika 57 saniye talented people do not want to work with people who are less talented [music] than they are. So every new hire must be 3:14:04 3 saat 14 dakika 4 saniye more talented than the average current employee. Otherwise, we [music] are diluting the talent pool. This created a 3:14:13 3 saat 14 dakika 13 saniye self-reinforcing escalation, [music] an arms race of hiring. Every new person raised the bar. The standards became 3:14:22 3 saat 14 dakika 22 saniye higher and higher. Only the absolute best could get in. And once you were in, 3:14:28 3 saat 14 dakika 28 saniye you were family. But here is what most people [music] forget about PayPal. Here is the original vision that got erased 3:14:36 3 saat 14 dakika 36 saniye from the mythology. PayPal [music] was supposed to destroy the Federal Reserve. 3:14:42 3 saat 14 dakika 42 saniye It was supposed to undermine state control of currency. That was the actual mission. That was why Peter Theal, the 3:14:50 3 saat 14 dakika 50 saniye libertarian ideologue, cared so [music] much. 3:14:55 3 saat 14 dakika 55 saniye The original vision laid out in Theo's founding documents create a new digital currency outside government control. 3:15:04 3 saat 15 dakika 4 saniye Enable [music] true peer-to-peer transactions globally without state intermediaries. 3:15:09 3 saat 15 dakika 9 saniye Undermine the state monopoly [music] on money creation and management. 3:15:15 3 saat 15 dakika 15 saniye build the financial infrastructure for a stateless society. 3:15:19 3 saat 15 dakika 19 saniye What actually happened? To become mainstream, to [music] actually scale, PayPal had to compromise every single 3:15:27 3 saat 15 dakika 27 saniye founding principle. [music] They had to integrate with the traditional banking system. The enemy, they had to comply 3:15:35 3 saat 15 dakika 35 saniye with know your [music] customer and anti-moneyaundering regulations, government control. 3:15:41 3 saat 15 dakika 41 saniye They had to partner with credit card companies, the old system [music] they wanted to destroy. They had to get licensed in every single state. 3:15:50 3 saat 15 dakika 50 saniye Regulatory [music] capture. They had to report suspicious transactions to federal authorities. Surveillance. By 3:15:59 3 saat 15 dakika 59 saniye 2002, PayPal was regulated exactly like a bank. Partnered with banks, [music] dependent on banks for all core 3:16:08 3 saat 16 dakika 8 saniye functionalities. The libertarian revolution had become just another fintech company [music] playing by the government's rules. 3:16:17 3 saat 16 dakika 17 saniye The learned the most important lesson of his career from PayPal's failure to achieve its revolutionary mission. You 3:16:24 3 saat 16 dakika 24 saniye cannot disrupt the system from inside the system. If you want to change the rules, you cannot ask permission from 3:16:32 3 saat 16 dakika 32 saniye the people who wrote them. [music] This lesson would shape everything he did next. Palanteer, Facebook, his political investments, everything. 3:16:45 3 saat 16 dakika 45 saniye [music] The PayPal acquisition was not an ending. It was a beginning, the start of something much larger. The pattern that emerged over the next 20 years. 3:16:55 3 saat 16 dakika 55 saniye [music] 3:16:56 3 saat 16 dakika 56 saniye PayPal veterans leave and start new companies in different sectors. 3:17:01 3 saat 17 dakika 1 saniye Theel invests early as angel investor or through founders fund. PayPal mafia members join each other's [music] boards 3:17:09 3 saat 17 dakika 9 saniye of directors. Cross investment between all their venture funds creates alignment. Preferential access to deal flow because of network relationships. 3:17:20 3 saat 17 dakika 20 saniye Shared [music] intelligence about markets, technology, and opportunities. 3:17:25 3 saat 17 dakika 25 saniye Real examples of how the network compounds. Reed Hoffman introduces Theel to Mark Zuckerberg in 2004. 3:17:34 3 saat 17 dakika 34 saniye Theel invests $500,000 in Facebook, eventually makes over $1 billion. 3:17:41 3 saat 17 dakika 41 saniye Roloff Botha joins Sequoia Capital and invests in multiple Theelbacked companies, creating reciprocal deal flows. 3:17:51 3 saat 17 dakika 51 saniye David Saxs hosts high [music] dollar fundraisers for Theo's political candidates, mixing business and politics seamlessly. 3:18:01 3 saat 18 dakika 1 saniye Max Levchim provides seed capital for Palanteer [music] and serves as advisor lending credibility. 3:18:09 3 saat 18 dakika 9 saniye This network effect multiplier is precisely how Theel turned $55 million 3:18:14 3 saat 18 dakika 14 saniye [music] 3:18:15 3 saat 18 dakika 15 saniye from PayPal into over $5 billion in net worth today. The PayPal mafia is not a cute nickname. 3:18:24 3 saat 18 dakika 24 saniye It is not a metaphor. It is the most successful organized business cartel [music] in Silicon Valley history. 3:18:31 3 saat 18 dakika 31 saniye A self-reinforcing [music] network of wealth, power, and influence that has shaped the entire technology industry for two decades. [music] 3:18:40 3 saat 18 dakika 40 saniye And Peter Theal sits at the center of it all. The Godfather. 3:18:52 3 saat 18 dakika 52 saniye After PayPal, Peter Theel was a man with a billion [music] dollars and a dangerous secret. While other investors 3:19:00 3 saat 19 dakika were looking at spreadsheets and profit margins, Theel was looking [music] at the human soul through the eyes of his mentor, Renee Gerard. 3:19:09 3 saat 19 dakika 9 saniye Gerard taught him a terrifying truth. Human beings don't know what they want. 3:19:16 3 saat 19 dakika 16 saniye We are mimemetic creatures. We don't desire things for themselves. We desire them because other people desire them. 3:19:25 3 saat 19 dakika 25 saniye We are copy machines disguised [music] as individuals. August 2004. 3:19:33 3 saat 19 dakika 33 saniye Facebook has been online for exactly 6 months. It started as a Harvard dorm project and has now expanded to several college campuses. 3:19:44 3 saat 19 dakika 44 saniye The metrics that Zuckerberg shows Theel total registered users 200,000 3:19:51 3 saat 19 dakika 51 saniye almost entirely college students daily active user rate 70 to [music] 80% engagement 3:20:00 3 saat 20 dakika unprecedented in web services revenue $0 no business model yet valuation 3:20:07 3 saat 20 dakika 7 saniye Zuckerberg is asking for $5 million every single professional venture capitalist in Silicon Valley has passed 3:20:16 3 saat 20 dakika 16 saniye on Facebook. Every major firm has looked into it and said no. The reasons they gave it is just a college directory. 3:20:25 3 saat 20 dakika 25 saniye Limited market. Fster has already 5 million users and is the leader in social networking. MySpace is dominant with 8 million users and growing fast. 3:20:37 3 saat 20 dakika 37 saniye There is no obvious business model or revenue stream. Mark Zuckerberg is too young, too inexperienced, too risky [music] as a founder. 3:20:49 3 saat 20 dakika 49 saniye Peter Theel saw something completely different, something that had nothing to do with technology. 3:20:56 3 saat 20 dakika 56 saniye Theel had spent years studying Renee Gerard's mimemetic theory, the philosophical framework that would shape 3:21:03 3 saat 21 dakika 3 saniye his entire investment approach. The core idea, [music] humans do not have original desires. 3:21:11 3 saat 21 dakika 11 saniye We desire what other people desire. We learn what to want by watching other 3:21:17 3 saat 21 dakika 17 saniye people want. Desire is imitative. Desire is social. Desire is mimemetic. 3:21:26 3 saat 21 dakika 26 saniye When Theel looked at Facebook, he did not see a technology platform for connecting friends. He saw something far 3:21:33 3 saat 21 dakika 33 saniye more powerful. He saw the perfect mimemetic desire machine. The insight that made Theel invest. Social networks 3:21:41 3 saat 21 dakika 41 saniye do not create [music] value by connecting people. That is not where the money is. The money is in comparison. 3:21:49 3 saat 21 dakika 49 saniye The money is in making people compare themselves to each other constantly. 3:21:54 3 saat 21 dakika 54 saniye You see [music] your friend's vacation photos, you want a better vacation. You see someone's job promotion announcement, you want higher status. 3:22:04 3 saat 22 dakika 4 saniye You see someone's relationship photos, you want [music] romance. 3:22:10 3 saat 22 dakika 10 saniye You see someone getting likes and comments, you want validation. 3:22:15 3 saat 22 dakika 15 saniye You see someone's perfect life, you feel your own life is inadequate. Facebook was not selling connections. 3:22:23 3 saat 22 dakika 23 saniye [music] 3:22:24 3 saat 22 dakika 24 saniye Facebook was selling envy. And envy, the understood from Gerard is the most powerful [music] economic force in human history. 3:22:34 3 saat 22 dakika 34 saniye The desire for what others have. They need to keep up. The fear of being left behind. Infinite envy creates infinite 3:22:43 3 saat 22 dakika 43 saniye demand. Infinite demand creates infinite value. September 2004. 3:22:51 3 saat 22 dakika 51 saniye Peter Theal wires $500,000 to Facebook incororated. 3:22:57 3 saat 22 dakika 57 saniye The deal terms 10.2% equity ownership in the company. A board seat giving him governance rights and inside information. 3:23:08 3 saat 23 dakika 8 saniye Right of first refusal on all future funding rounds. Post money valuation of exactly $5 million. 3:23:17 3 saat 23 dakika 17 saniye Mark Zuckerberg's reaction after the deal closed. This guy actually gets it. He understands what we are building. 3:23:25 3 saat 23 dakika 25 saniye Silicon Valley's reaction. Peter Theal just threw away half a million dollars on a college kid's website. This will be his biggest failure. 3:23:36 3 saat 23 dakika 36 saniye What happened next rewrote the history of venture capital. 3:23:40 3 saat 23 dakika 40 saniye 2004 end of year. 200,000 users grew to 1 million users. 3:23:48 3 saat 23 dakika 48 saniye Five times growth in 4 months. 2005 1 million users becomes 5.5 million 3:23:55 3 saat 23 dakika 55 saniye users. 2006 5.5 million users becomes 12 million users. 2007 12 million users 3:24:06 3 saat 24 dakika 6 saniye exploded to 50 million users. 2008 50 million users doubles to 100 million users. 3:24:15 3 saat 24 dakika 15 saniye 2009 100 million users becomes 350 million users. growth rate. The user base was 3:24:24 3 saat 24 dakika 24 saniye doubling every 6 to9 months for five consecutive years. 3:24:29 3 saat 24 dakika 29 saniye This growth curve had never been seen before in business history. Not even close. As Facebook grew, its valuation 3:24:38 3 saat 24 dakika 38 saniye grew and Peter Theel's stake grew with it. 3:24:43 3 saat 24 dakika 43 saniye May 2005, Axel Partners invests $12.7 million at $100 million valuation. 3:24:52 3 saat 24 dakika 52 saniye Field's 10.2% stake is now worth $10.2 million. He has achieved 20 times return in 9 months. 3:25:02 3 saat 25 dakika 2 saniye April 2006, Greylock Partners and Meritech Capital invest $27.5 million at $500 million valuation. 3:25:12 3 saat 25 dakika 12 saniye Theel stake is now worth $51 million, 100 times return on his original investment. 3:25:20 3 saat 25 dakika 20 saniye October 2007, Microsoft invests $240 million, valuing Facebook at $15 billion. 3:25:30 3 saat 25 dakika 30 saniye The stake is now worth $1.5 billion, a 300,000 times return in 3 years. 3:25:39 3 saat 25 dakika 39 saniye 2009 through 2011. 3:25:42 3 saat 25 dakika 42 saniye Multiple private sales and secondary transactions value Facebook at $50 billion. 3:25:50 3 saat 25 dakika 50 saniye The stake, if he had held everything, would be worth $5 billion. 3:25:56 3 saat 25 dakika 56 saniye May 18th, 2012, Facebook goes public at a market capitalization of $14 billion. 3:26:07 3 saat 26 dakika 7 saniye But the does not hold everything. He is strategic. He is tactical. He takes profits. At the initial public offering, 3:26:16 3 saat 26 dakika 16 saniye Theel sells $640 million worth of shares immediately. 3:26:22 3 saat 26 dakika 22 saniye Over the following 6 months, he sells the remainder of his stake in carefully timed transactions. 3:26:28 3 saat 26 dakika 28 saniye Total cash realized from the Facebook investment approximately $1 billion. 3:26:35 3 saat 26 dakika 35 saniye Initial investment in August 2004, $500,000. 3:26:41 3 saat 26 dakika 41 saniye Total cash realized by end of 2012, $1 billion. 3:26:46 3 saat 26 dakika 46 saniye Total return, 2,000 times in 8 years. 3:26:51 3 saat 26 dakika 51 saniye This is the single greatest venture capital return in recorded history. 3:26:56 3 saat 26 dakika 56 saniye Nothing else [music] comes close. But here is the twist. The haunting decision that Theel [music] himself admits keeps 3:27:04 3 saat 27 dakika 4 saniye him awake at night. Selling was a mistake. 3:27:09 3 saat 27 dakika 9 saniye If Peter Theal had held his original 10.2% stake and had never sold a single [music] share, that stake at Facebook's 3:27:17 3 saat 27 dakika 17 saniye peak market capitalization in 2021 would have been worth 102 billion. 3:27:25 3 saat 27 dakika 25 saniye $12 billion. 3:27:28 3 saat 27 dakika 28 saniye He left $100 billion on the table by selling early. 3:27:33 3 saat 27 dakika 33 saniye The himself admitted [music] this publicly saying, "The mistake was not investing in Facebook. The mistake was 3:27:40 3 saat 27 dakika 40 saniye selling Facebook. [music] I should have held longer. I should have believed more. It is the single most 3:27:48 3 saat 27 dakika 48 saniye expensive decision of his life." Years later in [music] a Stanford lecture, Theel explained his actual investment 3:27:57 3 saat 27 dakika 57 saniye thesis, the real reason he invested. I did not [music] invest in Facebook because I thought social networks were 3:28:04 3 saat 28 dakika 4 saniye going to be big. I invested because I understood that humans will [music] always want to be more like their peers. 3:28:12 3 saat 28 dakika 12 saniye That desire is infinite. It never stops. It only intensifies. 3:28:18 3 saat 28 dakika 18 saniye An infinite desire creates infinite 3:28:20 3 saat 28 dakika 20 saniye [music] 3:28:20 3 saat 28 dakika 20 saniye value. The mimemetic theory made him a billionaire. 3:28:25 3 saat 28 dakika 25 saniye The mimemetic theory also made him terrified [music] of what he had helped create. 3:28:31 3 saat 28 dakika 31 saniye A machine that weaponizes human envy. A system that profits from [music] making people feel inadequate. 3:28:39 3 saat 28 dakika 39 saniye An algorithm that amplifies the worst aspects of human nature. 3:28:44 3 saat 28 dakika 44 saniye Peter Theal helped build the most powerful behavior modification system in human history. And then he cashed out for a billion dollars. 3:29:03 3 saat 29 dakika 3 saniye 2003 [music] Peter Theel has a problem. It is the CIA's problem, but they think [music] 3:29:11 3 saat 29 dakika 11 saniye the can solve it. His PayPal anti-fraud algorithms have become so sophisticated at detecting patterns in financial 3:29:19 3 saat 29 dakika 19 saniye transactions at finding terrorists trying to move money through banking 3:29:23 3 saat 29 dakika 23 saniye [music] 3:29:24 3 saat 29 dakika 24 saniye systems that the CIA venture capital arm in QEL requested a meeting. The pitch 3:29:31 3 saat 29 dakika 31 saniye from the CIA, can you build what you built for PayPal but for national security? Can you find terrorists the way you found fraudsters? 3:29:43 3 saat 29 dakika 43 saniye May 2003. 3:29:45 3 saat 29 dakika 45 saniye Peter Theel co-founds Palunteer Technologies with an unusual group of co-founders. 3:29:51 3 saat 29 dakika 51 saniye The founding team, Alex Karp, chief executive officer. Stanford law degree philosophy PhD from Frankfurt University 3:30:00 3 saat 30 dakika in Germany. Former human rights lawyer who once worked on refugee cases. 3:30:07 3 saat 30 dakika 7 saniye an extremely odd choice to run a company that will become the most powerful surveillance technology provider on Earth. 3:30:15 3 saat 30 dakika 15 saniye Nathan Gettings, chief technology officer. PayPal's lead security engineer. Brilliant programmer. Joe 3:30:24 3 saat 30 dakika 24 saniye Lndale, a Stanford undergraduate student, barely 20 years old, one of the first Theel fellows. Steven Cohen, 3:30:33 3 saat 30 dakika 33 saniye PayPal's chief security architect. the person who actually built the fraud detection algorithms. Initial funding, 3:30:41 3 saat 30 dakika 41 saniye $2 million, entirely from Peter Theel's personal capital. No outside investors yet. This is his project. 3:30:51 3 saat 30 dakika 51 saniye The mission statement, build software that can find patterns in massive data sets from disperate, incompatible sources. 3:31:00 3 saat 31 dakika The kind of data that if intelligency agencies had been able to analyze it properly could have prevented September 11th, 2001. 3:31:12 3 saat 31 dakika 12 saniye The company name Palunteer named after the seeing stones in Lord of the Rings, the magical orbs that allow 3:31:19 3 saat 31 dakika 19 saniye their possessors to see anything happening anywhere in Middle Earth. Even the name revealed the ambition total information awareness. 3:31:30 3 saat 31 dakika 30 saniye the ability to see everything. 3:31:35 3 saat 31 dakika 35 saniye 2005, the CIA's venture capital arm in CQEL invest [music] $2 million in Palanteer's 3:31:42 3 saat 31 dakika 42 saniye series A funding round. This was not just money. This was validation from the intelligence community, a stamp of 3:31:51 3 saat 31 dakika 51 saniye approval from the most secretive, most paranoid organization in the US government. 3:31:58 3 saat 31 dakika 58 saniye Initial contract value undisclosed. 3:32:02 3 saat 32 dakika 2 saniye Government intelligence contracts are classified by law, but industry analysts estimate the first CIA contracts were 3:32:10 3 saat 32 dakika 10 saniye worth 5 to 10 million annually. The product was called Palunteer Gotham. The 3:32:17 3 saat 32 dakika 17 saniye name itself was significant. Gotham, the dark city that needs Batman. The city that needs surveillance to fight crime. 3:32:26 3 saat 32 dakika 26 saniye Core technical capabilities. 3:32:28 3 saat 32 dakika 28 saniye Integrate data from dozens of incompatible government databases that were never designed to communicate with 3:32:35 3 saat 32 dakika 35 saniye each other. From hidden connections between people, places, financial transactions, communications metadata, 3:32:44 3 saat 32 dakika 44 saniye visualize networks of relationships in ways human analysts could understand intuitively. 3:32:51 3 saat 32 dakika 51 saniye Predict future behavior and likely attack patterns based on historical data. Specific use cases for 3:32:59 3 saat 32 dakika 59 saniye intelligence agencies. Track terrorist cells across multiple countries. Map drug trafficking routes from production to distribution. 3:33:09 3 saat 33 dakika 9 saniye Identify money laundering networks moving funds for organized crime. 3:33:14 3 saat 33 dakika 14 saniye Predict [music] insurgent attacks in Iraq and Afghanistan based on pattern recognition. It worked. The software 3:33:22 3 saat 33 dakika 22 saniye actually worked. By 2006, Palanteer software was being actively used in Iraq 3:33:29 3 saat 33 dakika 29 saniye for [music] counterinsurgency operations and in IED attack prediction. 3:33:36 3 saat 33 dakika 36 saniye Afghanistan for predicting Taliban leadership networks. Langley, Virginia at CIA headquarters for threat analysis. 3:33:45 3 saat 33 dakika 45 saniye FBI field officers nationwide for domestic terrorism investigation. 3:33:52 3 saat 33 dakika 52 saniye Early revenue growth told the story of Palunteers expanding reach. 2005 $3 billion in revenue. Government 3:34:01 3 saat 34 dakika 1 saniye contracts only. 2006 $10 million. 2007 3:34:07 3 saat 34 dakika 7 saniye $25 million. 2008 $50 million. First commercial clients added 2010 $150 3:34:17 3 saat 34 dakika 17 saniye million. 2012 $400 million. By 2012, Palanteer had achieved something 3:34:25 3 saat 34 dakika 25 saniye extremely rare for a high- growth technology company. Profitability. 3:34:31 3 saat 34 dakika 31 saniye They were actually making money, not just burning venture capital. Customer revenue breakdown in 2012. 3:34:39 3 saat 34 dakika 39 saniye Government contracts, 60% of revenue, $240 million. 3:34:46 3 saat 34 dakika 46 saniye Commercial clients, 40% of revenue, $160 million. 3:34:53 3 saat 34 dakika 53 saniye May the 1st, 2011. Palanteer Software plays a role in the operation that kills Osama bin Laden. A role that remains 3:35:03 3 saat 35 dakika 3 saniye partially classified, but has been confirmed by multiple [music] sources. 3:35:08 3 saat 35 dakika 8 saniye How Palanteer contributed. Palanteer Gotham integrated dozens of different intelligence sources. 3:35:16 3 saat 35 dakika 16 saniye CIA human intelligence on career networks. NSA signal intelligence including [music] phone metadata and email communications patterns. 3:35:27 3 saat 35 dakika 27 saniye National Geospatial Intelligence Agency satellite imagery of potential compound locations. 3:35:34 3 saat 35 dakika 34 saniye historical pattern analysis of previous highv value target operations in Pakistan. 3:35:41 3 saat 35 dakika 41 saniye The system identified patterns and connections that human analysts working with separate databases that did not 3:35:48 3 saat 35 dakika 48 saniye communicate had missed. It narrowed the search area and helped confirm the identity of the Abotabad compound. 3:35:58 3 saat 35 dakika 58 saniye When asked about Palanteer's role in the bin Laden operation, Theo gave carefully worded response. I cannot comment on 3:36:07 3 saat 36 dakika 7 saniye specific operations or specific clients due to classification requirements, but I will say this. Tools that help protect 3:36:16 3 saat 36 dakika 16 saniye American lives and help intelligence professionals do their jobs better. That is our mission. 3:36:25 3 saat 36 dakika 25 saniye This single operation, this single success legitimized Palanteer's [music] entire value proposition to the national security establishment. 3:36:34 3 saat 36 dakika 34 saniye After bin Laden, the contracts poured in. 3:36:40 3 saat 36 dakika 40 saniye After the bin Laden success, Palanteer's government business exploded. Revenue growth from 2012 to 2015. 3:36:50 3 saat 36 dakika 50 saniye 2012, $400 million in revenue. 2013, $600 million. 2014, 3:36:59 3 saat 36 dakika 59 saniye $900 million. 2015, $1.5 billion in revenue. Major new contracts announced publicly. 3:37:12 3 saat 37 dakika 12 saniye US Department of Defense, $222 million for a 3-year data integration platform contract. 3:37:21 3 saat 37 dakika 21 saniye US Army, $800 million for comprehensive data platform modernization across [music] all Army systems, 3:37:30 3 saat 37 dakika 30 saniye US Special Operations Command, $444 million for targeting and intelligence fusion, 3:37:39 3 saat 37 dakika 39 saniye Department of Homeland Security, $240 million for border security and immigration enforcement systems. 3:37:48 3 saat 37 dakika 48 saniye Palanteer had become the single most important software company in the entire US defense and intelligence establishment, 3:37:56 3 saat 37 dakika 56 saniye more important than traditional defense contractors, more embedded in classified operations. 3:38:04 3 saat 38 dakika 4 saniye Simultaneously, Palanteer launched a commercial product called Palunteer [music] Foundry for private sector clients. The sales pitch to corporate 3:38:13 3 saat 38 dakika 13 saniye America. Your company has exactly the same problem as the CIA. Too much data, 3:38:20 3 saat 38 dakika 20 saniye too many incompatible systems, not enough insight. We can help you find the patterns you are missing. Major 3:38:28 3 saat 38 dakika 28 saniye commercial clients and estimated contract values. 3:38:34 3 saat 38 dakika 34 saniye JP Morgan Chase over $100 million fraud detection and financial crime 3:38:40 3 saat 38 dakika 40 saniye prevention. Morgan Stanley over $50 million risk management and regulatory 3:38:47 3 saat 38 dakika 47 saniye compliance. Airbus over $75 million supply chain optimization and manufacturing analytics. 3:38:56 3 saat 38 dakika 56 saniye Merc Pharmaceuticals over $60 million drug discovery analytics and clinical trial data integration. 3:39:06 3 saat 39 dakika 6 saniye BP over $80 million oil field production optimization and predictive maintenance. 3:39:14 3 saat 39 dakika 14 saniye Commercial revenue growth from 2015 to 2020. [music] In 2015, they got $600 million 3:39:23 3 saat 39 dakika 23 saniye commercial [music] revenue. By 2016, the number was around $800 billion. 3:39:29 3 saat 39 dakika 29 saniye In 2017, they reached $1.1 billion in commercial revenue, and it became their 3:39:35 3 saat 39 dakika 35 saniye peak year. 2018 made them hit the $750 million mark, a temporary decline due to customer churn. 3:39:47 3 saat 39 dakika 47 saniye In 2019, revenue was around $745 million, and by 2020, they reached $1.1 billion. 3:39:57 3 saat 39 dakika 57 saniye Again, this recovery was driven by COVID analytics contracts. Palanteer had 3:40:04 3 saat 40 dakika 4 saniye created a business model with two enormous locked in customer bases, the US government and the largest corporations in the world. 3:40:17 3 saat 40 dakika 17 saniye But Palanteer's work, especially for government agencies, attracted intense controversy and moral criticism. 3:40:25 3 saat 40 dakika 25 saniye In 2019, they secured a contract with ICE for $49 million. The purpose of the 3:40:32 3 saat 40 dakika 32 saniye contract was enforcement and removal operations systems, meaning a software used to identify, 3:40:40 3 saat 40 dakika 40 saniye track, and process undocumented immigrants for deportation. 3:40:46 3 saat 40 dakika 46 saniye This project came with a controversy attached. The software was used during [music] the family separation policy at 3:40:52 3 saat 40 dakika 52 saniye the southern border. Children separated from their parents, families torn apart. 3:40:59 3 saat 40 dakika 59 saniye Palanteer Software helped make it operationally possible. Hundreds of Palunteer employees signed an [music] 3:41:06 3 saat 41 dakika 6 saniye internal letter demanding the company cancel the ICE contract. 3:41:12 3 saat 41 dakika 12 saniye They argued the company was enabling human rights abuses. The Karp's response, absolute refusal. The contract would continue. 3:41:23 3 saat 41 dakika 23 saniye Alex Cart gave a public statement saying that they had chosen sides and that the company supported American institutions. 3:41:31 3 saat 41 dakika 31 saniye But this was not the only controversy Palunteer has faced. Palanteer worked alongside [music] the NYPD with a 3:41:40 3 saat 41 dakika 40 saniye contract estimated between 50 and $100 billion. The mission predictive policy. 3:41:47 3 saat 41 dakika 47 saniye They were asked to use historical crime data to predict where future crimes will occur and who is likely to commit them. 3:41:55 3 saat 41 dakika 55 saniye The controversy civil rights groups argued that system perpetuated racial bias. Minority neighborhoods were 3:42:04 3 saat 42 dakika 4 saniye flagged as high risk. Innocent people were put under surveillance based on algorithmic predictions. 3:42:12 3 saat 42 dakika 12 saniye Joe Londale, Palunteer co-founder, had made a personal investment in Cambridge Analytica. 3:42:20 3 saat 42 dakika 20 saniye Multiple Palanteer employees on their own time helped Cambridge Analytica build data integration models. 3:42:29 3 saat 42 dakika 29 saniye Both companies use similar approaches to data harvesting and psychological profiling. 3:42:36 3 saat 42 dakika 36 saniye When the connection was exposed by journalists, Palanteer claimed there was no institutional relationship, just coincidental personal connections. 3:42:47 3 saat 42 dakika 47 saniye But the damage [music] to Palanteer's reputation was done. The had built the panopticon. 3:42:53 3 saat 42 dakika 53 saniye The allseeing eye of corporate and government surveillance. September the 30th, 2020. 3:43:02 3 saat 43 dakika 2 saniye After 17 years as a private company, one of the longest periods of private operation for any major tech company, 3:43:09 3 saat 43 dakika 9 saniye Palanteer finally goes public through a direct listing. 3:43:15 3 saat 43 dakika 15 saniye They went public at $10 per share and their market capitalization at market open was $16 billion. 3:43:25 3 saat 43 dakika 25 saniye By the first day, shares were down 5%. 3:43:28 3 saat 43 dakika 28 saniye The stock was initially a disappointment. 3:43:32 3 saat 43 dakika 32 saniye Investors were skeptical of the business model, worried about customer concentration, concerned about the controversy. 3:43:40 3 saat 43 dakika 40 saniye But then COVID 19 created massive new demand for Palanteer's capabilities. 3:43:47 3 saat 43 dakika 47 saniye 2020 to 2021, Palanteer wins enormous pandemic related government contracts with governments across the world. The 3:43:56 3 saat 43 dakika 56 saniye pandemic proved that governments needed Palanteer and the market responded. 3:44:01 3 saat 44 dakika 1 saniye By late 2021, Palanteer stock had exploded. $29 per share at 190% gain 3:44:10 3 saat 44 dakika 10 saniye from the direct listing price. Market capitalization $60 billion. 3:44:19 3 saat 44 dakika 19 saniye Peter Theal stake approximately 7% ownership worth 4.2 2 billion at the 3:44:26 3 saat 44 dakika 26 saniye peak. 2022, the tech crash hits Palanteer brutally hard. Stock prices 3:44:33 3 saat 44 dakika 33 saniye crash to $6 per share, down 8% from the peak. Market cap collapses to $13 billion. 3:44:43 3 saat 44 dakika 43 saniye The paper wealth from Palanteer evaporates. Billions gone. 2023 to 2024, the AI boom creates new opportunity. 3:44:54 3 saat 44 dakika 54 saniye Palanteer markets itself as the AI platform for governments and enterprises and they get major new contract wins. 3:45:02 3 saat 45 dakika 2 saniye The US Army invested $463 million for AI powered battlefield analytics [music] and decision support systems. 3:45:12 3 saat 45 dakika 12 saniye Palanteer stock recovered 25 to 30 per share by 2024. 3:45:19 3 saat 45 dakika 19 saniye As of 2024, Peter Theel's current Palanteer holdings are approximately 7% of all shares with a current value 3:45:27 3 saat 45 dakika 27 saniye ranging from 3.8 to $4.5 billion depending on daily stock price. 3:45:38 3 saat 45 dakika 38 saniye This makes Palunteer Field's single largest source of personal wealth. In 3:45:44 3 saat 45 dakika 44 saniye 2024, Palanteer's financial performance was divided between government and commercial revenue. The company's net 3:45:52 3 saat 45 dakika 52 saniye income was $2.5 billion annually. And as big as the number is, this might represent a future problem for the 3:46:01 3 saat 46 dakika 1 saniye company. If government budget cuts happen, Palanteer is extremely vulnerable. 3:46:07 3 saat 46 dakika 7 saniye Their entire business model depends on continued government spending. Here is Peter Theel's fundamental contradiction. 3:46:16 3 saat 46 dakika 16 saniye The paradox at the [music] heart of everything he has built. He claims to be a libertarian who values individual freedom above all else. A man who 3:46:26 3 saat 46 dakika 26 saniye believes government power should be minimal. A man who wrote that freedom and democracy are incompatible. 3:46:33 3 saat 46 dakika 33 saniye Yet, he built the most powerful private surveillance technology company in human history. A company that gives [music] 3:46:41 3 saat 46 dakika 41 saniye governments and corporations unprecedented ability to monitor, track, predict, and control human behavior. 3:46:48 3 saat 46 dakika 48 saniye [music] 3:46:49 3 saat 46 dakika 49 saniye Palunteers technical capabilities include realtime tracking of individuals across multiple data sources and databases. 3:47:01 3 saat 47 dakika 1 saniye Predictive behavioral modeling that forecasts what people will do before they do it. Network analysis that maps 3:47:09 3 saat 47 dakika 9 saniye every [music] person you have ever contacted through any medium. Complete integration of financial [music] 3:47:15 3 saat 47 dakika 15 saniye records, communication metadata, location history, and social relationship data into a single unified 3:47:24 3 saat 47 dakika 24 saniye profile. [music] Field's defense of this contradiction was explaining that the alternative to [music] Palanteer is not no surveillance. 3:47:35 3 saat 47 dakika 35 saniye The alternative is worse surveillance performed by incompetent government bureaucrats using decades old technology that does not work properly. 3:47:48 3 saat 47 dakika 48 saniye The critics's response was obvious. They told Theo he had built the panopticon, the architecture of total surveillance. 3:47:59 3 saat 47 dakika 59 saniye A system allowing governments around the world to use their citizens information to control them, not a system to protect them, said the critics. 3:48:09 3 saat 48 dakika 9 saniye Palanteer now operates in dozens of countries worldwide. The United States, the United Kingdom, Germany, France, Australia, and [music] even Japan. 3:48:20 3 saat 48 dakika 20 saniye The company has some controversial international clients, some confirmed, some alleged, but the total estimated 3:48:28 3 saat 48 dakika 28 saniye value of all global contracts lifetime, over $10 billion in contract value. 3:48:36 3 saat 48 dakika 36 saniye Palanteer is Peter Theel's most important company. Not because of its valuation, though that is substantial. 3:48:45 3 saat 48 dakika 45 saniye Not because of its revenue, though that is significant. Palanteer is important because it reveals the truth about 3:48:53 3 saat 48 dakika 53 saniye Theo's worldview. It is the bridge between his libertarian philosophy and his authoritarian reality. He claims to want freedom from government control. 3:49:04 3 saat 49 dakika 4 saniye [music] 3:49:06 3 saat 49 dakika 6 saniye But Palanteer gives governments unprecedented control over their citizens. The resolution of this 3:49:13 3 saat 49 dakika 13 saniye apparent contradiction. Peter the believes in freedom for the elite and surveillance for everyone else. 3:49:24 3 saat 49 dakika 24 saniye In his vision of the world, there are rulers and there are the ruled. There are the people who make the decisions and the [music] people who are managed. 3:49:34 3 saat 49 dakika 34 saniye Palanteer is the enforcement mechanism for that hierarchy. The technology that ensures the rulers can see everything. 3:49:43 3 saat 49 dakika 43 saniye the system that makes resistance impossible because privacy no longer exists. And Peter Theal sits at the 3:49:52 3 saat 49 dakika 52 saniye center of that eye, watching the world, seeing everything. The architect of the surveillance state. 3:50:04 3 saat 50 dakika 4 saniye In 2016, Peter Theal made an investment that every other major technology investor avoided. [music] 3:50:13 3 saat 50 dakika 13 saniye While his peers in Silicon Valley were contributing millions to the opposing campaign, Theel wrote a check for $1.25 3:50:22 3 saat 50 dakika 22 saniye million to Donald Trump's presidential campaign. 3:50:26 3 saat 50 dakika 26 saniye This was not ideology. This was portfolio diversification. 3:50:32 3 saat 50 dakika 32 saniye Feel [music] has always invested in contrarian positions. When everyone zigs, he zags. When consensus forms in 3:50:42 3 saat 50 dakika 42 saniye one direction, he looks for asymmetric opportunities in the other. The 2006 donation gave him something money 3:50:51 3 saat 50 dakika 51 saniye usually cannot buy in Silicon [music] Valley. Direct access to executive power. The return on that $1.25 $25 3:51:00 3 saat 51 dakika million investment, a seat on the presidential transition team, input on federal technology 3:51:08 3 saat 51 dakika 8 saniye policy, direct communication channels to the White [music] House, credibility as a Washington power broker, 3:51:18 3 saat 51 dakika 18 saniye and most measurably, Palanteer's government contracts increased substantially during this period. 3:51:26 3 saat 51 dakika 26 saniye But the's most significant political investments came in the 2022 midterm elections. 3:51:33 3 saat 51 dakika 33 saniye Two candidates, both former employees, both running for United States Senate. 3:51:40 3 saat 51 dakika 40 saniye The financial commitment was unprecedented in scale. 3:51:45 3 saat 51 dakika 45 saniye Vance had worked at Theel's venture capital firm before writing his [music] best-selling memoir. Fields total 3:51:53 3 saat 51 dakika 53 saniye financial commitment direct campaign contribution $15 million 3:52:00 3 saat 52 dakika super PAC [music] expenditures $5 million combined investment $20 million. 3:52:07 3 saat 52 dakika 7 saniye This set a [music] record as the largest single donor contribution to an individual Senate campaign in American 3:52:15 3 saat 52 dakika 15 saniye history. The outcome Vance won by six percentage points. 3:52:21 3 saat 52 dakika 21 saniye Masters had worked directly for Theel as chief operating officer at Theel Capital. 3:52:28 3 saat 52 dakika 28 saniye Theel's financial commitment to his campaign was a combined investment of $20 million. But unlike Vance, Masters lost by 5 percentage points. 3:52:39 3 saat 52 dakika 39 saniye The total 2022 midterm investment was over $40 million in two Senate races. 3:52:47 3 saat 52 dakika 47 saniye two different candidates that would have allowed him to be in direct touch with power at different chambers [music] and stages. For context, the average 3:52:56 3 saat 52 dakika 56 saniye competitive Senate race costs approximately $10 million total. Peter Theal invested four times that amount on [music] two races. 3:53:08 3 saat 53 dakika 8 saniye It's July 2024. JD Vance is selected as the Republican vice presidential 3:53:15 3 saat 53 dakika 15 saniye candidate. From a pure investment analysis perspective, this transforms the return profile and Theo's $20 3:53:23 3 saat 53 dakika 23 saniye million commitment. He has considered the potential financial implications if this ticket wins and he gets access to 3:53:32 3 saat 53 dakika 32 saniye executive branch decisionmaking for 8 years. influence over federal contract allocation across multiple agencies. 3:53:41 3 saat 53 dakika 41 saniye Input on technology regulation affecting the portfolio [music] companies. 3:53:48 3 saat 53 dakika 48 saniye If we consider what's the estimated return on investment for Palanteer's government business, what we see is 3:53:56 3 saat 53 dakika 56 saniye current annual government revenue of $1.5 billion. 3:54:01 3 saat 54 dakika 1 saniye potential additional contract value over eight years conservatively 5 to10 billion [music] 3:54:10 3 saat 54 dakika 10 saniye and other defense companies in the network potential 3 to5 billion in contracts 3:54:19 3 saat 54 dakika 19 saniye regulatory [music] treatment of cryptocurrency holdings value potentially in tens of billions. 3:54:29 3 saat 54 dakika 29 saniye The theoretical return of those 20 million invested is potentially 15 to 20 billion captured across the portfolio. 3:54:39 3 saat 54 dakika 39 saniye That represents a potential of 750 to 1,000 times return. By comparison, 3:54:46 3 saat 54 dakika 46 saniye Theel's Facebook investment returned 2,000 times. 3:54:51 3 saat 54 dakika 51 saniye To sum it up, the complete political spending of the from 2016 to 2022 is 70 to $80 million. 3:55:01 3 saat 55 dakika 1 saniye For context, Amazon spends 20 [music] million annually on lobbying. Meta spends 20 million annual on lobbying. 3:55:10 3 saat 55 dakika 10 saniye Google spends 12 million annually on lobbying. Field's approach is different. 3:55:16 3 saat 55 dakika 16 saniye Rather than ongoing lobbying expenditures, he makes concentrated 3:55:20 3 saat 55 dakika 20 saniye [music] 3:55:21 3 saat 55 dakika 21 saniye investments in individual candidates who potentially provide access for years or decades. 3:55:30 3 saat 55 dakika 30 saniye It is the venture capital model applied to politics. Make early stage investments in promising candidates. 3:55:38 3 saat 55 dakika 38 saniye Provide sufficient capital to help them win. Capture value through long-term relationships and access. 3:55:46 3 saat 55 dakika 46 saniye The candidates Theel has supported now serve on key committees. 3:55:52 3 saat 55 dakika 52 saniye Technology regulation, defense appropriations, intelligence oversight, banking and financial services. 3:56:01 3 saat 56 dakika 1 saniye Precisely the committees that oversee industries where the has billions invested and where he can use some 3:56:08 3 saat 56 dakika 8 saniye privileged information. [music] Is political investment a good use of capital? The mathematics suggest [music] 3:56:17 3 saat 56 dakika 17 saniye yes 70 to 80 million represents less than 1% of the's net worth. The potential return 3:56:25 3 saat 56 dakika 25 saniye if facets translate to favorable treatment for portfolio companies could be worth billions. Even with a 50% 3:56:34 3 saat 56 dakika 34 saniye success rate, the expected value is positive by orders of magnitude. 3:56:39 3 saat 56 dakika 39 saniye Investment 70 to 80 million over 8 years. Potential value captured 15 to 30 3:56:46 3 saat 56 dakika 46 saniye billion across portfolio. Expected return 200 to 400 times invested capital 3:56:56 3 saat 56 dakika 56 saniye that rivals the best venture capital returns in history. Peter Theel is not playing politics. He is optimizing his portfolio. 3:57:10 3 saat 57 dakika 10 saniye Chapter 7. The final exit. 3:57:13 3 saat 57 dakika 13 saniye Peter Theal has spent his life betting on the future, building it, funding it, accelerating it. But there is one frontier he refuses to accept as fixed. 3:57:25 3 saat 57 dakika 25 saniye Death. To him, mortality is not destiny. 3:57:30 3 saat 57 dakika 30 saniye It is an engineering problem waiting for a breakthrough. Unlike every other system he has challenged, he believes this one too can be redesigned. 3:57:40 3 saat 57 dakika 40 saniye While others plan for retirement, Theel funds longevity [music] labs. While governments plan for decades, he thinks 3:57:48 3 saat 57 dakika 48 saniye in centuries. If time is the ultimate [music] constraint on power, then extending life is the ultimate leverage. 3:57:56 3 saat 57 dakika 56 saniye At the edge of the world, he built a refuge. Far from political centers, far from social unrest, close only to time. 3:58:07 3 saat 58 dakika 7 saniye In Silicon Valley, there is a dark joke shared quietly [music] among founders and investors. 3:58:14 3 saat 58 dakika 14 saniye How many billionaires does it take to buy a country? 3:58:18 3 saat 58 dakika 18 saniye Just one, if he is smart enough to get there first. 3:58:25 3 saat 58 dakika 25 saniye He invested in digital currencies that governments cannot print. In surveillance systems that see [music] what others cannot. In political 3:58:34 3 saat 58 dakika 34 saniye candidates who might shape the rules. In technologies that might outlive biology itself. Not to save the world, to outlast it. 3:58:49 3 saat 58 dakika 49 saniye What began as a contingency plan for a few has become an unspoken strategy among the ultra wealthy. 3:58:57 3 saat 58 dakika 57 saniye When the New Zealand citizenship story became public, one of Theo's closest peers, Samman, put it bluntly. 3:59:06 3 saat 59 dakika 6 saniye If things go really wrong, I'm flying to Peter's place. 3:59:12 3 saat 59 dakika 12 saniye Some men try to make history. Peter Theel is trying to escape it. 3:59:18 3 saat 59 dakika 18 saniye And if the future breaks, he intends to be standing somewhere it cannot reach. 4:00:52 4 saat 52 saniye Most people see this and think culture. 4:00:55 4 saat 55 saniye They see a charming eco-friendly tradition. 4:00:59 4 saat 59 saniye But look closer. This isn't just people liking to pedal. What you were watching is a highfrequency, low friction economic machine. 4:01:09 4 saat 1 dakika 9 saniye Ultimately, private car ownership is going to become [music] obsolete. Cities are building for pedestrians. They're building for cycling. They're building for livability, not for cars. 4:01:20 4 saat 1 dakika 20 saniye The bike economy, the multi-billion dollar system of Amsterdam. 4:01:27 4 saat 1 dakika 27 saniye In Amsterdam, the bicycle isn't a toy. It is a critical urban infrastructure. 4:01:34 4 saat 1 dakika 34 saniye If this system failed today, the city's economy would collapse tomorrow. 4:01:42 4 saat 1 dakika 42 saniye For decades, the world has viewed Amsterdam through a romantic lens. But cities don't run on vibes. They run on 4:01:50 4 saat 1 dakika 50 saniye systems. And when a system moves hundreds of thousands of people every single day, it stops being a choice and 4:01:57 4 saat 1 dakika 57 saniye starts demanding three things. space, rules, and capital. 4:02:03 4 saat 2 dakika 3 saniye Research shows that the cycling system contributes benefits equivalent to roughly 3% of the Netherlands [music] GDP. 4:02:11 4 saat 2 dakika 11 saniye This isn't just green energy. It's hard cash saved in public health, reduced absenteeism at work, and most 4:02:20 4 saat 2 dakika 20 saniye importantly, [music] unlocked productivity. Every person on a bike is a person who isn't taking up 12 [music] square meters of public space 4:02:28 4 saat 2 dakika 28 saniye with a car. That freed up space allows for high value real estate, commerce, and tourism. In economics, we call this optimization of land use. 4:02:44 4 saat 2 dakika 44 saniye But success created a [music] crisis. By the 2010s, Amsterdam had a clutter problem. Thousands of bikes were choking 4:02:52 4 saat 2 dakika 52 saniye [music] the streets. The solution, one of the most expensive and daring engineering projects [music] in the 4:02:59 4 saat 2 dakika 59 saniye city. They built a cathedral for 7,000 bicycles under the water. 4:03:06 4 saat 3 dakika 6 saniye It cost millions. [music] From a traditional linear perspective, spending that much on free parking seems insane. But from a circular economy 4:03:16 4 saat 3 dakika 16 saniye perspective, a model where Amsterdam is a global leader with 30.6% [music] circularity rate, it was a mandatory 4:03:23 4 saat 3 dakika 23 saniye investment. As we see in the latest urban governance reports, [music] planning isn't an option here. It's the only way to exist. 4:03:33 4 saat 3 dakika 33 saniye In this documentary, [music] we are going beyond the postcard. We will travel back to 1965 to see why [music] 4:03:41 4 saat 3 dakika 41 saniye the first sharing economy experiment failed. We will use scientific GPS [music] data to track the shadow economy of the 80,000 bikes stolen every year. 4:03:52 4 saat 3 dakika 52 saniye And we will explore [music] how Amsterdam is using the bicycle to become the world's first 100% circular city by 4:04:00 4 saat 4 dakika 2050. This is the story of how a humble machine with two wheels became the backbone of a multi-billion dollar urban miracle. 4:04:14 4 saat 4 dakika 14 saniye To understand why Amsterdam spends €85 million on underwater parking today, we have to go back to a time when the city 4:04:22 4 saat 4 dakika 22 saniye almost lost its soul to the car, the 1960s. 4:04:33 4 saat 4 dakika 33 saniye As post-war prosperity grew, Amsterdam was being choked by motor vehicles. 4:04:39 4 saat 4 dakika 39 saniye In response, a counterculture group called the Provos launched what would become the first bike sharing program in 4:04:46 4 saat 4 dakika 46 saniye history, the Vita Fieten Plan, or the White Bike Plan. 4:04:52 4 saat 4 dakika 52 saniye Their proposal was radical and purely idealistic. Paint 20,000 [music] bicycles white, leave them unlocked 4:04:59 4 saat 4 dakika 59 saniye across the city and let anyone use them for free. No keys, no coins, [music] no owners. They viewed mobility as a 4:05:08 4 saat 5 dakika 8 saniye public good, as essential and free as the air we breathe. On paper, it was a circular economy, [music] 4:05:16 4 saat 5 dakika 16 saniye avant letra. In practice, it was a disaster. [music] Within days, the system collapsed. Why? Because the 4:05:24 4 saat 5 dakika 24 saniye provos ignored a fundamental principle of economics, the tragedy [music] of the commons. 4:06:08 4 saat 6 dakika 8 saniye Without ownership or registration, public property quickly [music] became nobody's property. In an unregulated 4:06:15 4 saat 6 dakika 15 saniye system with zero entry cost, the incentive to maintain the asset disappears. Without locks or registration, public property quickly 4:06:24 4 saat 6 dakika 24 saniye became nobody's property. [music] The police confiscated the bikes because they invited theft and the citizens 4:06:31 4 saat 6 dakika 31 saniye driven by individual rationalism either took them home or threw them into [music] the canals. 4:06:38 4 saat 6 dakika 38 saniye The lesson was harsh. You cannot have a massive urban transit system [music] based solely on romanticism. 4:06:46 4 saat 6 dakika 46 saniye You need governance. However, the white bikes planted a seed. 4:06:54 4 saat 6 dakika 54 saniye It shifted the economic debate. The city realized that if they didn't want to spend billions on highways like Los 4:07:01 4 saat 7 dakika 1 saniye Angeles or London, they had to invest in a [music] different kind of capital. 4:07:06 4 saat 7 dakika 6 saniye Transition requires not just technology but a change in urban metabolism. 4:07:12 4 saat 7 dakika 12 saniye The failure of the white bikes taught Amsterdam that the bicycle had to be integrated into the formal economy of the city, not as a rebel symbol, [music] 4:07:21 4 saat 7 dakika 21 saniye but as a regulated, taxed and planned asset. 4:07:25 4 saat 7 dakika 25 saniye Today, the free spirit of the white bikes only survives in one [music] place, the Hoga Valu National Park. But 4:07:33 4 saat 7 dakika 33 saniye in the city, the white bike has been replaced by a sophisticated capital incentive model. We no longer trust in 4:07:40 4 saat 7 dakika 40 saniye the goodness of the user. We trust [music] in incentives. We move the tragedy of the commons to a system of 4:07:47 4 saat 7 dakika 47 saniye managed common pool resources. In economics, success can be as disruptive as failure. By the late 2010s, Amsterdam 4:07:56 4 saat 7 dakika 56 saniye was a victim of its own efficiency. With nearly 1 million bicycles in the city, the urban surface had reached a breaking 4:08:04 4 saat 8 dakika 4 saniye point. Every bridge, railing, and sidewalk was occupied by idle metal. 4:08:11 4 saat 8 dakika 11 saniye This wasn't just an aesthetic grievance. 4:08:14 4 saat 8 dakika 14 saniye It was an economic [music] bottleneck. Thousands of parked bikes were clogging the city's arteries, slowing down 200,000 daily commuters at 4:08:23 4 saat 8 dakika 23 saniye [music] Central Station. In one of the world's most expensive real estate markets, free surface parking [music] is 4:08:30 4 saat 8 dakika 30 saniye a luxury that a functional city cannot afford. The opportunity cost of that space [music] was becoming too high. To 4:08:38 4 saat 8 dakika 38 saniye solve this, Amsterdam launched the entre, [music] a massive urban reconfiguration project. 4:08:45 4 saat 8 dakika 45 saniye The crown jewel, the open haven underwater parking. 4:08:50 4 saat 8 dakika 50 saniye Consider that figure. Spending €60 million just to store 7,000 bicycles underwater. 4:08:57 4 saat 8 dakika 57 saniye To a traditional accountant, this looks like a massive sunk cost. But to an urban economist, it's a master stroke of 4:09:06 4 saat 9 dakika 6 saniye asset management. By moving 7,000 bikes beneath the water, the city performed open heart surgery on its central hub. 4:09:15 4 saat 9 dakika 15 saniye They reclaimed the surface, restoring the landscape to its 1900's aesthetic. 4:09:20 4 saat 9 dakika 20 saniye This isn't just about beauty. It's about maximizing pedestrian flow. A station that breathes and flows is a station 4:09:28 4 saat 9 dakika 28 saniye that generates higher economic value for the surrounding businesses. However, an 85 million euro asset must be managed 4:09:36 4 saat 9 dakika 36 saniye like a high performance logistics center. You cannot allow zombie bikes to occupy these slots indefinitely. 4:09:44 4 saat 9 dakika 44 saniye This is where the incentive structure comes into play. The primary goal isn't profit, it's turnover. By offering the 4:09:53 4 saat 9 dakika 53 saniye first 24 hours for free, the city subsidizes the daily [music] workforce. 4:09:58 4 saat 9 dakika 58 saniye But by charging a daily fee thereafter, they penalize long-term storage and abandonment. Using advanced optical 4:10:06 4 saat 10 dakika 6 saniye sensors, [music] the city monitors idle inventory in real time, ensuring that these [music] 7,000 slots remain a liquid asset for those who keep the economy moving. 4:10:19 4 saat 10 dakika 19 saniye Finally, we must consider the cost of friction. 4:10:29 4 saat 10 dakika 29 saniye Transport. 4:11:00 4 saat 11 dakika In transport economics, every second lost in a transfer is a loss in human capital and productivity. 4:11:07 4 saat 11 dakika 7 saniye This underwater facility connects directly to the metro and [music] train platforms. A commuter can transition 4:11:14 4 saat 11 dakika 14 saniye from their bicycle to their train seat in [music] less than 2 minutes, shielded from the elements. This level of intermodel [music] 4:11:22 4 saat 11 dakika 22 saniye synergy is exactly what makes Amsterdam's circular economy currently at a record 30.6 6% circularity rate, a 4:11:30 4 saat 11 dakika 30 saniye functional reality rather than just a policy goal. 4:11:59 4 saat 11 dakika 59 saniye But this transition to a highly regulated system created its own set of problems. [music] Because when you turn a bicycle into a valuable economic 4:12:08 4 saat 12 dakika 8 saniye asset, you create something else. A black market. [music] In Amsterdam, data doesn't tell the whole story. While 4:12:17 4 saat 12 dakika 17 saniye police record 11,000 thefts a year, the reality is closer to 80,000. 4:12:23 4 saat 12 dakika 23 saniye Most citizens don't report it. [music] Cost of time is higher than the bike's value. This creates a massive shadow 4:12:30 4 saat 12 dakika 30 saniye market operating entirely outside the official GDP. Forget the myth of international bike smuggling rings. 4:12:39 4 saat 12 dakika 39 saniye A 2023 study tracking 100 bikes proved that stolen assets rarely leave the city. Instead, they feed a shadow 4:12:48 4 saat 12 dakika 48 saniye circular economy. Your stolen bike is sold to [music] a street dealer and then bought by your neighbor. It's a localized, untaxed, and 4:12:57 4 saat 12 dakika 57 saniye [music] 4:12:57 4 saat 12 dakika 57 saniye illegal closed loop. 4:13:00 4 saat 13 dakika High theft risk creates a market distortion. If you expect your bike to be stolen within months, you don't 4:13:07 4 saat 13 dakika 7 saniye [music] buy quality, you buy junk. This beta bike equilibrium keeps the city's transport fleet low quality and forces 4:13:16 4 saat 13 dakika 16 saniye owners to spend more on locks than [music] the bikes themselves. 4:13:20 4 saat 13 dakika 20 saniye These aren't victimless crimes. They are negative externalities that drain city resources. [music] Amsterdam's answer, the Fiat depot. 4:13:31 4 saat 13 dakika 31 saniye Since the city [music] couldn't stop the theft, it decided to manage the orphaned assets. Because in a circular [music] city, even a stolen bike is a resource 4:13:40 4 saat 13 dakika 40 saniye that must be managed to maintain the urban metabolism. 4:13:46 4 saat 13 dakika 46 saniye In a city with more bicycles than people, orphaned assets are an inevitability. 4:13:52 4 saat 13 dakika 52 saniye Every year, thousands of bikes are simply left behind. In economic terms, this is dead capital. They occupy 4:13:59 4 saat 13 dakika 59 saniye valuable public space, provide zero utility, and degrade the urban landscape. 4:14:05 4 saat 14 dakika 5 saniye According to official Amsterdam regulations, the city must intervene when private property interferes with public efficiency. 4:14:14 4 saat 14 dakika 14 saniye Whether is an improperly parked bike blocking an emergency exit or a wreck that is no longer functional, the 4:14:22 4 saat 14 dakika 22 saniye municipality acts as the ultimate enforcer of spatial order. 4:14:28 4 saat 14 dakika 28 saniye All seized bicycles are transported to a central facility, the Fiat's depot. This is a logistical powerhouse that manages 4:14:37 4 saat 14 dakika 37 saniye the city's lost capital. This isn't just a pound. It's a sorting facility for the city's metal metabolism, the retrieval. 4:14:46 4 saat 14 dakika 46 saniye Owners have around 6 weeks to claim their bike for a fee, approximately €25. 4:14:52 4 saat 14 dakika 52 saniye This fee doesn't cover the full operational cost, but it serves as a user pays tax to discourage abandonment. 4:15:00 4 saat 15 dakika If your bicycle was removed from a city parking facility, you will also pay €33.75 4:15:07 4 saat 15 dakika 7 saniye parking cost. The sorting only about 25% of bikes are ever reclaimed. The rest they are classified as waste or asset. 4:15:17 4 saat 15 dakika 17 saniye Here [music] is where the circular economy strategy 2020 to 2025 becomes tangible. Amsterdam aims to reduce the 4:15:26 4 saat 15 dakika 26 saniye use of new raw materials by 50% [music] by 2030. The Fiat's depot doesn't just scrap everything. 4:15:35 4 saat 15 dakika 35 saniye Refurbishment. 4:15:37 4 saat 15 dakika 37 saniye Bikes in decent condition are sold to social enterprises or secondhand shops. 4:15:42 4 saat 15 dakika 42 saniye They are recirculated into the economy at a low price point, providing affordable mobility for lowincome residents. 4:15:51 4 saat 15 dakika 51 saniye Education. 4:15:52 4 saat 15 dakika 52 saniye Many are used in vocational training programs, turning junk, into a teaching tool for future mechanics. Raw 4:16:00 4 saat 16 dakika materials, the unsalvageable ones, are sold as highquality scrap metal, feeding back into the industrial cycle. 4:16:09 4 saat 16 dakika 9 saniye What we see here is a complete life cycle management of a transport mode. 4:16:14 4 saat 16 dakika 14 saniye The biggest challenge [music] for circular cities is the lack of effective governance mechanisms. Amsterdam succeeds because it treats the bicycle 4:16:23 4 saat 16 dakika 23 saniye as a public utility. From the multi-million euro investment under the water to the scrap metal in the harbor, 4:16:30 4 saat 16 dakika 30 saniye the city manages the entire cradletograve cycle of the bicycle. 4:16:39 4 saat 16 dakika 39 saniye Amsterdam is no longer just building bike lanes. It is building a new economic DNA. The city has set a target 4:16:47 4 saat 16 dakika 47 saniye that many economists call impossible to be 100% circular by 2050. 4:16:57 4 saat 16 dakika 57 saniye This means that by midentury, every gram of steel in a bicycle and every stone in a bridge must stay within the economic loop. 4:17:06 4 saat 17 dakika 6 saniye The take, make, waste model will be extinct. For Amsterdam, the bicycle is the alpha product. The test case for how 4:17:15 4 saat 17 dakika 15 saniye a city can move, consume, and recycle without depleting the planet's capital. 4:17:21 4 saat 17 dakika 21 saniye To reach 100% circularity, the concept of private ownership is being challenged by a more efficient model, product as a 4:17:30 4 saat 17 dakika 30 saniye service. You don't buy the bike, you rent the mobility. 4:17:35 4 saat 17 dakika 35 saniye So we talk a lot about ownership as a service, but it's this idea of, you know, something as a service. So in our case, bike as a service. It's all of the 4:17:43 4 saat 17 dakika 43 saniye benefits of ownership, but none of the drawbacks. So none of having to deal with the maintenance or or any of the things that come with actually owning something. 4:17:52 4 saat 17 dakika 52 saniye Economically, this aligns the incentives of the producer and the consumer. If the bike breaks, it's the company's problem, 4:18:00 4 saat 18 dakika not yours. by centralizing all of that maintenance obviously we cut cost significantly we cut [music] waste significantly um but for the individual 4:18:08 4 saat 18 dakika 8 saniye user um they have nothing to worry about you know as a subscriber you get all of your maintenance so we come and do preventative maintenance so first of all 4:18:17 4 saat 18 dakika 17 saniye that obviously reduced the cost um overall not so much to the end user but the cost of the business um that prevents breakdowns and things like that 4:18:25 4 saat 18 dakika 25 saniye but in the end if you think about um the cost of time the cost of effort um maybe you you don't even know how to maintain 4:18:32 4 saat 18 dakika 32 saniye your own bike. Um, having a service that does all of that for you is just a a matter of convenience. 4:18:37 4 saat 18 dakika 37 saniye This forces manufacturers to design for durability and modularity, the core pillars of this circular economy. When 4:18:46 4 saat 18 dakika 46 saniye the city manages the flow and private companies manage the maintenance, the shadow economy of theft we saw in act 4:18:53 4 saat 18 dakika 53 saniye three begins to shrink. So, if you subscribe to a bike from Clover and your bike gets stolen, first of all, we actually probably will notice that it 4:19:00 4 saat 19 dakika got stolen, maybe even before you did, because we have GPS on all the bikes. 4:19:05 4 saat 19 dakika 5 saniye Um, but if it does get stolen, you use our WhatsApp chat. You basically send us a message and we come and bring you a new bike immediately. Why steal a bike 4:19:13 4 saat 19 dakika 13 saniye that is tracked, branded, and has no resale value in a subscription-based market? 4:19:20 4 saat 19 dakika 20 saniye So, what is the final return on investment? [music] Let's look at the triple bottom line. Public health. By 4:19:28 4 saat 19 dakika 28 saniye avoiding 11,000 deaths annually through active transport, [music] the Dutch economy saves 19 billion in healthcare costs. 4:19:37 4 saat 19 dakika 37 saniye Urban density. By utilizing underwater parking and vertical depots, Amsterdam maintains a population density that 4:19:45 4 saat 19 dakika 45 saniye would be impossible with cars, keeping real estate productivity at peak levels. 4:19:51 4 saat 19 dakika 51 saniye Resource independence. By reclaiming metal from the Fiats depot, the city insulates itself from [music] global 4:19:59 4 saat 19 dakika 59 saniye commodity price shocks. This is a sustainable urban metabolism. The city isn't just a place where people live. 4:20:07 4 saat 20 dakika 7 saniye It's a living organism that processes resources with maximum efficiency. 4:20:12 4 saat 20 dakika 12 saniye Amsterdam's success has sent a clear message to the rest of the continent. 4:20:17 4 saat 20 dakika 17 saniye Spatial efficiency is the only way forward for the modern metropolis. 4:20:22 4 saat 20 dakika 22 saniye Across Europe, the bicycle has moved from being a leisure tool to a cornerstone of urban recovery and economic resilience. 4:20:31 4 saat 20 dakika 31 saniye In Paris, a city once defined by its congestion, the plan is investing hundreds of millions to become 100% 4:20:39 4 saat 20 dakika 39 saniye cyclable. In Barcelona, the super blocks are reclaiming entire intersections from cars to create human centric lungs. 4:20:49 4 saat 20 dakika 49 saniye These aren't just environmental projects. They are market corrections. 4:20:55 4 saat 20 dakika 55 saniye The cities are betting that a quieter, cleaner, and more agile urban center will attract more talent, more tourism, and higher property values. 4:21:05 4 saat 21 dakika 5 saniye From the cycle superighways of London to the industrial hubs of Germany, the economic logic is consistent. Replacing 4:21:13 4 saat 21 dakika 13 saniye a 1 and 1/2 ton vehicle with a 15 kg machine reduces the cost of maintenance for the city and increases the productivity of the citizen. 4:21:24 4 saat 21 dakika 24 saniye But while northern capitals have the advantage of decades of infrastructure, the real test is happening in the south. 4:21:31 4 saat 21 dakika 31 saniye In the Mediterranean, where the street is a social space and the sun is a constant resource, a new leader is emerging. A city that has used the 4:21:40 4 saat 21 dakika 40 saniye Amsterdam blueprint to transform itself at record speed. 4:21:51 4 saat 21 dakika 51 saniye [music] 4:21:52 4 saat 21 dakika 52 saniye Fore 4:22:13 4 saat 22 dakika 13 saniye speech. 4:22:19 4 saat 22 dakika 19 saniye [music] 4:22:49 4 saat 22 dakika 49 saniye If Amsterdam is the blueprint, [music] Valencia is the laboratory. 4:22:57 4 saat 22 dakika 57 saniye is not the fact. 4:23:39 4 saat 23 dakika 39 saniye In less than a decade, this Mediterranean city has transitioned from a car ccentric capital to a [music] global reference in urban metabolism. 4:24:12 4 saat 24 dakika 12 saniye Valencia's transformation wasn't a matter of vibes or romanticism. It was a calculated investment in spatial efficiency. 4:24:21 4 saat 24 dakika 21 saniye I think attracting top global talent means that you need to have a vibrant, livable city. And I think most young people um particularly who are coming 4:24:29 4 saat 24 dakika 29 saniye into the workforce now are looking for ways to get around a city that doesn't rely on public transit. They don't want to own a car um because car ownership is 4:24:38 4 saat 24 dakika 38 saniye a total burden. Having to find parking, [music] insurance, cost of the car, all of that. So having this accessible infrastructure, cycling infrastructure 4:24:46 4 saat 24 dakika 46 saniye specifically, [music] and in a city like Valencia that, you know, already has a lot of reasons to attract top talent just makes it that 4:24:52 4 saat 24 dakika 52 saniye much better. Um, cycling is a preferred way to get around in Valencia, we're number seven in the world for cycling to work, for example. So adding a layer of 4:25:01 4 saat 25 dakika 1 saniye an easy subscription ebike service to that just [music] again attracts even more um top talent to the city. 4:25:08 4 saat 25 dakika 8 saniye By implementing the Anilo Crista, the city has reclaimed high value public space to boost local commerce and reduce the toxic liability of the car. 4:25:18 4 saat 25 dakika 18 saniye It's important to remember that um often times with cars, although they can fit multiple people, most of the time it's one person per one car. So when we're 4:25:26 4 saat 25 dakika 26 saniye asking about, you know, 10 bikes versus one car, we're essentially saying 10 people versus one person. So we have a 10x multiplier on essentially everything 4:25:34 4 saat 25 dakika 34 saniye that's happening on that street. Whether that be visits to the businesses, whether that be transactions and purchases, everything gets that 10x multiplier and increases revenue for the whole street. 4:25:42 4 saat 25 dakika 42 saniye In economics, this is the optimization of land use. The same principle that drove Amsterdam to build under its canals. 4:25:49 4 saat 25 dakika 49 saniye If I'm cycling and I pass by, for example, a bakery, go I smell that bakery, I go, "Oh, you know what? Maybe I'm going to stop in try something 4:25:57 4 saat 25 dakika 57 saniye [music] one of those products." Um, you know, essentially become a patron of that business. Whereas if I'm passing by in a car, there's no chance of that happening. And the other benefit [music] 4:26:04 4 saat 26 dakika 4 saniye is um car parking also has this sort of psychological effect on the streets and the people that live there. Car parking makes the space feel a lot more closed 4:26:12 4 saat 26 dakika 12 saniye in and a lot more cramped than bike parking, [music] which keeps the space very nice and open. 4:26:17 4 saat 26 dakika 17 saniye Emerging businesses are shifting the market from ownership to usership. 4:26:22 4 saat 26 dakika 22 saniye You know, our customers, [music] they depend on their bikes as a reliable way to get around. And so we use an ownership as a service model. So [music] 4:26:29 4 saat 26 dakika 29 saniye instead of owning the asset yourself um you subscribe to it from us and we think that's what customers need in terms of reliable day-to-day transportation. If 4:26:38 4 saat 26 dakika 38 saniye you look at something like Lime or Valen BC they will have that idle asset problem. Um and certainly ownership 4:26:45 4 saat 26 dakika 45 saniye obviously the same thing but with us you know handling maintenance, battery swapping, theft protection, insurance, all of that. Um [music] and yet still 4:26:53 4 saat 26 dakika 53 saniye having access to the bike anytime you want. It's your bike. Subscription models like Swap Fiats, which already dominate the Dutch market, are landing 4:27:02 4 saat 27 dakika 2 saniye in Valencia. These companies treat the bike as a service, covering all maintenance and repairs for a monthly fee. 4:27:09 4 saat 27 dakika 9 saniye You ownership isn't necessarily a bad investment, but I think um most consumers are moving away from owning things. You know, people are leasing 4:27:16 4 saat 27 dakika 16 saniye their cars, people are, you know, more and more renting their homes. Um so for us, a subscription model made sense that and affordability. This eliminates the 4:27:25 4 saat 27 dakika 25 saniye fear of theft and long-term depreciation, turning the bicycle into a predictable, low- friction utility for 4:27:32 4 saat 27 dakika 32 saniye the modern worker. The impact extends to logistics. In Valencia's historic center, where large trucks are 4:27:41 4 saat 27 dakika 41 saniye increasingly restricted, last mile delivery by cargo [music] bike is becoming the gold standard for efficiency. We are witnessing the birth 4:27:49 4 saat 27 dakika 49 saniye of microhubs, small urban distribution centers that allow for zero emission high-speed delivery in highdensity 4:27:57 4 saat 27 dakika 57 saniye zones. From the massive underwater investments in Amsterdam to the emerging subscription models in Valencia, the 4:28:05 4 saat 28 dakika 5 saniye message is clear. The bicycle is no longer just a hobby. It is a financial instrument and a spatial optimizer. 4:28:14 4 saat 28 dakika 14 saniye You know, when we were speaking to consumers about how we could get them to switch from a car to an ebike, it was all about convenience. So, it was about 4:28:21 4 saat 28 dakika 21 saniye this idea that, you know, with a car, you can go point A to point B whenever you want. You're not relying on public transit or any of those things. [music] 4:28:29 4 saat 28 dakika 29 saniye But if you need gas, you go to a gas station, it takes 5 minutes, and you're back on your way. People perceived ebikes as inconvenient because, oh, what 4:28:37 4 saat 28 dakika 37 saniye if I forget to charge the battery? Then it's just kind of a very heavy paper weight. Um, but if we eliminate that need for charging and people can just 4:28:44 4 saat 28 dakika 44 saniye come and collect a charge battery anytime, um, it helps break that barrier to entry for getting out of a car. By 4:28:52 4 saat 28 dakika 52 saniye integrating these new business models with public planning, Valencia is securing its place in the 21st century 4:28:58 4 saat 28 dakika 58 saniye economy. Proving that a dense functional city isn't just a choice, it's a competitive necessity. 4:29:06 4 saat 29 dakika 6 saniye Ultimately, private car ownership is going to become obsolete. Cities are building for pedestrians. They're building for cycling. They're building for livability, not for cars. 4:29:16 4 saat 29 dakika 16 saniye Throughout this documentary, we have seen the gears of a massive economic machine. But there is a final myth we 4:29:23 4 saat 29 dakika 23 saniye must dismantle. The idea that cities like Amsterdam or Valencia look like this because their citizens are simply 4:29:30 4 saat 29 dakika 30 saniye different. History tells a different story. In the 1970s, Amsterdam was on the verge of becoming another car ccentric congested metropolis. 4:29:41 4 saat 29 dakika 41 saniye The transition we see today wasn't a natural evolution of culture. [music] It was a hostile takeover of urban space by 4:29:49 4 saat 29 dakika 49 saniye a policy and planning. When a city reaches a certain density, [music] freedom of choice in transport becomes a mathematical impossibility. 4:29:58 4 saat 29 dakika 58 saniye If everyone chooses a car, no one moves. 4:30:02 4 saat 30 dakika 2 saniye In this highstakes environment, planning is not an option. It is the only way to survive. What is the ultimate harvest of 4:30:10 4 saat 30 dakika 10 saniye this planning? It is the [music] 3% GDP boost we mentioned at the start. But it's also found in the margins, 4:30:19 4 saat 30 dakika 19 saniye the fiscal savings by avoiding the need for multi-billion [music] euro highway expansions and massive health care costs related to sedentary lifestyles. 4:30:29 4 saat 30 dakika 29 saniye The resilience factor by creating a circular metropolis that can process its own waste at the Kruu depot and turn it back into capital. 4:30:40 4 saat 30 dakika 40 saniye The talent magnet in the global war for talent. Highly skilled workers choose cities based on livability. [music] 4:30:47 4 saat 30 dakika 47 saniye Amsterdam's bicycle infrastructure is its most effective recruitment [music] tool. We started this journey looking at 4:30:54 4 saat 30 dakika 54 saniye a simple machine, two wheels and a frame. [music] But as we've seen, the bicycle in Amsterdam is much more than a 4:31:02 4 saat 31 dakika 2 saniye transport mode. It is a financial instrument. It is a spatial optimizer. 4:31:08 4 saat 31 dakika 8 saniye It is the invisible engine that allows a medieval city to function as a 21st century economic powerhouse. 4:31:16 4 saat 31 dakika 16 saniye The €85 million spent on underwater tunnels, the complex logistics of the Kruquest Depo, or the new Mediterranean 4:31:25 4 saat 31 dakika 25 saniye bike lanes are not costs. They are investments in resilience. 4:31:31 4 saat 31 dakika 31 saniye In a world of rising energy prices and shrinking urban space, the Amsterdam model offers a glimpse into the future. 4:31:39 4 saat 31 dakika 39 saniye It proves that the most sophisticated technology isn't always a new gadget. 4:31:44 4 saat 31 dakika 44 saniye Sometimes it's the perfect integration of an old idea into a new circular world. 4:32:53 4 saat 32 dakika 53 saniye Imagine 4:33:09 4 saat 33 dakika 9 saniye for a moment, what if your Bitcoin holdings could purchase more than just everyday items like coffee or the latest gadgets? What if that digital currency 4:33:17 4 saat 33 dakika 17 saniye sitting in your wallet could actually buy you a house or perhaps even an entire commercial building? real estate. 4:33:27 4 saat 33 dakika 27 saniye [music] 4:33:36 4 saat 33 dakika 36 saniye Welcome to the fascinating and rapidly evolving world of crypto real [music] estate where digital assets are being transformed into tangible property. 4:33:50 4 saat 33 dakika 50 saniye Today, we're taking a deep dive into the revolutionary intersection of cryptocurrency and property ownership, examining in detail how [music] Bitcoin 4:33:58 4 saat 33 dakika 58 saniye is successfully transforming what were once purely digital coins into tangible physical real estate investments. 4:34:04 4 saat 34 dakika 4 saniye Whether you're an experienced crypto investor looking to diversify your portfolio or simply someone who's curious about emerging trends in 4:34:11 4 saat 34 dakika 11 saniye property markets, this is an in-depth look at how the landscape and future of real estate transactions is fundamentally evolving and changing before our eyes. 4:34:22 4 saat 34 dakika 22 saniye The financial world is in [music] constant transformation, but in this decade, digitalization has accelerated that change faster than anyone [music] imagined. 4:34:31 4 saat 34 dakika 31 saniye Today, money, investments, and assets flow through codes silent, transparent, and borderless. Cryptocurrencies led by Bitcoin mark the beginning of a new era. 4:34:42 4 saat 34 dakika 42 saniye They shook the foundations of the global financial system, sparking [music] both excitement and skepticism. Yet, behind that phenomenon emerged something even deeper. Tokenization. 4:34:57 4 saat 34 dakika 57 saniye Contraos 4:35:16 4 saat 35 dakika 16 saniye real world assets. 4:35:40 4 saat 35 dakika 40 saniye Moment. 4:35:48 4 saat 35 dakika 48 saniye [music] 4:35:52 4 saat 35 dakika 52 saniye tokenization brings. So it's the most suitable, most modern ledger technology uh ideal for modernizing capital markets. The idea is simple, the impact enormous. 4:36:01 4 saat 36 dakika 1 saniye [music] Each token represents a fraction of an asset, a share, a bond, a property, or even a work of art. All recorded on a blockchain, a global 4:36:10 4 saat 36 dakika 10 saniye tamper proof ledger. [music] 4:36:17 4 saat 36 dakika 17 saniye [music] 4:36:30 4 saat 36 dakika 30 saniye Smart contracts. 4:36:48 4 saat 36 dakika 48 saniye We believe the next step going forward will be the [music] tokenization of financial assets. And that means every 4:36:55 4 saat 36 dakika 55 saniye stock, every bond will have its own basically QIP. It'll be on one general ledger. [music] In other words, a token isn't just an 4:37:03 4 saat 37 dakika 3 saniye asset. It's a digital entry in a new kind of ledger that is rewriting how capital markets keep their books. 4:37:10 4 saat 37 dakika 10 saniye Investment in tokenized real estates represents one of the most recent advancements in the property industry. 4:37:16 4 saat 37 dakika 16 saniye Tokenization [music] enables houses and apartments to be divided and sold and numerous smaller units. 4:37:34 4 saat 37 dakika 34 saniye Fraction. 4:37:46 4 saat 37 dakika 46 saniye Fraction. 4:38:12 4 saat 38 dakika 12 saniye Small programs act like a bridge between a property and online trading platform. 4:38:16 4 saat 38 dakika 16 saniye Hence tokens create a digital representation of a property facilitating its digital [music] transfer. 4:38:25 4 saat 38 dakika 25 saniye The process [music] of purchasing a property is still associated with significant bureaucracy, lengthy procedures and subsequent high costs. 4:38:34 4 saat 38 dakika 34 saniye So what exactly is crypto real estate? 4:38:37 4 saat 38 dakika 37 saniye At its core, the term refers to any real estate transaction where cryptocurrency plays a major role, either as a direct 4:38:45 4 saat 38 dakika 45 saniye form of payment, a converted asset, or collateral for purchasing property. 4:38:59 4 saat 38 dakika 59 saniye Bitcoins 4:39:19 4 saat 39 dakika 19 saniye Crypto reference loans. 4:39:43 4 saat 39 dakika 43 saniye But the concept goes even deeper than that. Crypto real estate includes buying a home directly with Bitcoin or other cryptocurrencies, using stable coins 4:39:52 4 saat 39 dakika 52 saniye like USDT or USDC for a more stable purchase, converting crypto into fiat at closing, taking out loans backed by 4:40:00 4 saat 40 dakika cryptocurrency to purchase real property, tokenized real estate where ownership is fractionalized into digital token, blockchain based property records, and smart contract driven transactions. 4:40:23 4 saat 40 dakika 23 saniye Stable coins. 4:40:40 4 saat 40 dakika 40 saniye Stable coins. 4:40:52 4 saat 40 dakika 52 saniye EMT. E A R E 4:41:04 4 saat 41 dakika 4 saniye 10 U US USDT 4:41:14 4 saat 41 dakika 14 saniye USDC 4:41:29 4 saat 41 dakika 29 saniye US stable coinry. 4:42:01 4 saat 42 dakika 1 saniye for 4:42:23 4 saat 42 dakika 23 saniye stable coins. 4:42:32 4 saat 42 dakika 32 saniye It's an evolution in how value moves around the world. And for the first time, digital wealth is becoming a direct pathway to physical ownership. 4:42:45 4 saat 42 dakika 45 saniye To understand how we arrived at this moment, we need to step back and look at the timeline. Bitcoin launched in 2009 as a peer-to-peer digital alternative to 4:42:53 4 saat 42 dakika 53 saniye money. In its early years, the idea of using Bitcoin to buy real estate was laughable. But Bitcoin grew, first crossing $1, then a 100, then a 4:43:01 4 saat 43 dakika 1 saniye thousand, then tens of thousands. A new wave of wealth was created. Suddenly, early adopters who once bought pizza 4:43:08 4 saat 43 dakika 8 saniye with Bitcoin now had enough digital value to buy entire homes, and sellers began paying attention. The first public 4:43:16 4 saat 43 dakika 16 saniye record of a property purchased fully in Bitcoin dates back to 2017. From there, the trend spread to luxury markets. 4:43:23 4 saat 43 dakika 23 saniye Miami, Los Angeles, New York, Dubai, and London. Developers began marketing properties specifically to crypto 4:43:30 4 saat 43 dakika 30 saniye buyers. Brokers started specializing in crypto transactions. Escrow companies adapted. 4:43:37 4 saat 43 dakika 37 saniye Even governments began studying blockchainbased property registries. 4:43:42 4 saat 43 dakika 42 saniye Buying real estate with Bitcoin isn't science fiction. Some sellers now accept crypto directly, while others work through brokers who convert Bitcoin into 4:43:51 4 saat 43 dakika 51 saniye local currency. The process is faster, borderless, and sometimes even tax efficient if you know the rules. Things 4:43:59 4 saat 43 dakika 59 saniye that sounded impossible in 2010 became normal by 2020. And now [music] in the 2020s, cryptocurrency is becoming a serious player in global real estate. 4:44:09 4 saat 44 dakika 9 saniye The crypto boom has created a new class of investors. [music] High- netw worth individuals want to diversify, and real estate is a safe, 4:44:16 4 saat 44 dakika 16 saniye tangible asset. From luxury homes in Miami to condos in Dubai, Bitcoin buyers [music] are making their mark. Let's 4:44:24 4 saat 44 dakika 24 saniye look at a few real world examples to understand how crypto real estate works in practice. Case study one. In 2021, a 4:44:31 4 saat 44 dakika 31 saniye luxury penthouse at Arte by Antonio Satario in Surfside, Florida made history. The property sold for $22.5 million paid entirely in cryptocurrency. 4:44:43 4 saat 44 dakika 43 saniye The largest publicly known real estate transaction completed using digital assets [music] at the time. A developer's decision to accept 4:44:50 4 saat 44 dakika 50 saniye cryptocurrency had paid off. The sale came just weeks after the developer announced it would begin accepting cryptocurrency payments through a 4:44:58 4 saat 44 dakika 58 saniye partnership with blockchain [music] platform Solid Block. According to Forbes, the deal demonstrated that crypto was no longer just a speculative 4:45:05 4 saat 45 dakika 5 saniye asset. It had become a viable method for purchasing high-end real estate. Case study 2. in Dubai. One of the earliest 4:45:13 4 saat 45 dakika 13 saniye large-scale experiments [music] with crypto real estate unfolded at Aston Plaza and residences located in Dubai Science Park. Marketed as one of the 4:45:22 4 saat 45 dakika 22 saniye first major developments in the region [music] to accept Bitcoin, the project offered apartments priced directly in cryptocurrency. 4:45:30 4 saat 45 dakika 30 saniye Buyers were able to commit funds using Bitcoin, capturing global attention. But the story also revealed the risks of 4:45:37 4 saat 45 dakika 37 saniye innovation. Originally advertised as a $325 [music] million development, the project later stalled and its completion [music] 4:45:45 4 saat 45 dakika 45 saniye became uncertain. While crypto payments were accepted, it remains unclear whether all buyers ultimately received 4:45:52 4 saat 45 dakika 52 saniye finished properties. The case highlighted both the promise and the pitfalls of early crypto adoption [music] real estate. Case study three. 4:46:01 4 saat 46 dakika 1 saniye In 2025, Spain recorded one of [music] its first officially reported property sales completed with Bitcoin. A property in Madrid valued at approximately 4:46:10 4 saat 46 dakika 10 saniye [music] 1.5 million of euros was purchased by an international buyer using Bitcoin. The transaction followed standard real estate procedures, 4:46:18 4 saat 46 dakika 18 saniye including escrow, legal compliance, and the conversion of crypto into euros for the seller. It marked a significant milestone showing that cryptocurrency 4:46:27 4 saat 46 dakika 27 saniye could integrate into traditional real estate systems even in highly regulated European markets. Case study 4. In the 4:46:34 4 saat 46 dakika 34 saniye United States, crypto adoption hasn't been limited to coastal tech hubs. An agent with Safaby International Realy in 4:46:42 4 saat 46 dakika 42 saniye Delaware reported selling a luxury property [music] for $175 million paid in Bitcoin. Believed to be one of the 4:46:49 4 saat 46 dakika 49 saniye state's first major real estate transactions involving cryptocurrency, the sale was widely publicized as a local milestone, signaling that crypto 4:46:58 4 saat 46 dakika 58 saniye real estate was beginning to reach beyond niche [music] markets and into everyday property transactions. 4:47:06 4 saat 47 dakika 6 saniye Genius Act. 4:47:11 4 saat 47 dakika 11 saniye [music] 4:47:17 4 saat 47 dakika 17 saniye [music] 4:47:18 4 saat 47 dakika 18 saniye Apostable coins. 4:47:52 4 saat 47 dakika 52 saniye prote. 4:48:16 4 saat 48 dakika 16 saniye Conservator. for us. 4:48:28 4 saat 48 dakika 28 saniye really. 4:48:57 4 saat 48 dakika 57 saniye Taken together, these cases tell a larger story, one of experimentation, success, setbacks, and growing legitimacy. Crypto real estate is no 4:49:06 4 saat 49 dakika 6 saniye longer hypothetical. It's happening transaction by transaction across the globe. But it's not all smooth sailing. 4:49:15 4 saat 49 dakika 15 saniye Crypto's value can be volatile. 4:49:16 4 saat 49 dakika 16 saniye Regulations vary by country, and tax implications can be tricky. First, volatility. Bitcoin and other 4:49:24 4 saat 49 dakika 24 saniye cryptocurrencies can move dramatically, sometimes losing or gaining a third of their value in weeks. For buyers who convert at closing, rapid swings can erase gains or spike costs in hours. 4:49:35 4 saat 49 dakika 35 saniye Second, transaction mechanics and title. 4:49:38 4 saat 49 dakika 38 saniye Even when a seller accepts crypto, most governments and land registries require deeds to be issued in the local currency. That usually means an 4:49:46 4 saat 49 dakika 46 saniye intermediary converts crypto to fiat before the legal title is registered, adding counterparty risk and an extra step that can delay and complicate 4:49:54 4 saat 49 dakika 54 saniye settlements. Third, taxes. In many jurisdictions, authorities treat crypto as property, not currency, which makes nearly every transfer a taxable event. 4:50:03 4 saat 50 dakika 3 saniye That includes sales, exchanges, and sometimes even payments for goods or services. Buyers and sellers must track cost basis gains and report the 4:50:12 4 saat 50 dakika 12 saniye transactions accurately or face audits and penalties. Fourth, lending and counterparty risk. Cryptobacked lending exploded in the previous market cycle, 4:50:20 4 saat 50 dakika 20 saniye but it ended with high-profile collapses and bankruptcies. When platforms fail, borrowers and depositors can lose access to funds. Collateral can be liquidated 4:50:28 4 saat 50 dakika 28 saniye at a loss and promise liquidity disappears, a danger for anyone relying on thirdparty services to bridge crypto and property purchases. 4:50:35 4 saat 50 dakika 35 saniye Fifth, compliance and anti-moneylaundering rules. Regulators and global bodies have tightened rules around virtual assets to prevent elicit 4:50:43 4 saat 50 dakika 43 saniye flows. Real estate transactions are high on that list, meaning additional KYC, source of fund checks, and reporting requirements. Failure to meet these 4:50:51 4 saat 50 dakika 51 saniye standards can stall a sale, trigger investigations, or expose participants to legal liability. Sixth, operational 4:50:58 4 saat 50 dakika 58 saniye and technical risk. Crypto transactions are irreversible. A single wrong character in a wallet address or a fishing attack on an email with wiring 4:51:06 4 saat 51 dakika 6 saniye instructions can send millions to the wrong place and there's no bank to reverse the transfer. Seventh, technology risk. Smart contracts tokenization and new platforms bring 4:51:15 4 saat 51 dakika 15 saniye innovation, but also software bugs and design flaws. A poorly written smart contract or an unodudited tokenization platform can freeze assets, misallocate ownership shares, or enable exploits. 4:51:26 4 saat 51 dakika 26 saniye Finally, market and reputational risk. 4:51:28 4 saat 51 dakika 28 saniye Developers and brokers who accept crypto can attract new buyers, but they also take on greater scrutiny, regulatory compliance burdens, and the risk that projects promoted with crypto funding 4:51:37 4 saat 51 dakika 37 saniye may underdel, stall, or become entangled in legal disputes. In short, crypto can speed and globalize property deals. But 4:51:45 4 saat 51 dakika 45 saniye it also layers on volatility, regulatory complexity, and new failure modes. For buyers, sellers, and advisers, the 4:51:52 4 saat 51 dakika 52 saniye lesson is clear. proceed with rigorous legal counsel, hardened custody practices, and transparent compliance. 4:51:59 4 saat 51 dakika 59 saniye The opportunity is real, but so are the pitfalls. 4:52:22 4 saat 52 dakika 22 saniye Still, the opportunities are huge. A new generation of buyers is turning digital value into physical assets. For many, Bitcoin isn't just a [music] currency. 4:52:32 4 saat 52 dakika 32 saniye It's a gateway to ownership. 4:52:35 4 saat 52 dakika 35 saniye One of the biggest shifts is tokenization. Instead of buying an [music] entire building, investors can now purchase fractional ownership 4:52:42 4 saat 52 dakika 42 saniye through blockchainbased tokens. This lowers the barrier to entry, allowing smaller investors to access real estate markets that were once reserved for 4:52:50 4 saat 52 dakika 50 saniye institutions and [music] the ultra wealthy. 4:53:00 4 saat 53 dakika forch. 4:53:10 4 saat 53 dakika 10 saniye [music] 4:53:29 4 saat 53 dakika 29 saniye [music] 4:53:37 4 saat 53 dakika 37 saniye [music] 4:53:39 4 saat 53 dakika 39 saniye Tokenization also brings liquidity to an industry that has traditionally been slow and illquid. Real estate transactions [music] can take months. 4:53:48 4 saat 53 dakika 48 saniye Tokenized shares can potentially be transferred in minutes. Crypto is also reshaping crossber real estate. 4:53:55 4 saat 53 dakika 55 saniye International buyers often face currency controls, wire delays, [music] and banking restrictions. Cryptocurrency allows capital to move globally with 4:54:03 4 saat 54 dakika 3 saniye fewer friction points, [music] opening markets to buyers who were previously locked out. As a result, cities that embrace crypto-friendly regulations are attracting global capital faster. 4:54:13 4 saat 54 dakika 13 saniye Developers are responding by marketing properties directly to crypto [music] holders, not as a novelty, but as a strategy. Governments are also exploring 4:54:20 4 saat 54 dakika 20 saniye blockchain for land registries [music] and property records. Immutable ledgers can reduce disputes, prevent title fraud, [music] and provide permanent 4:54:28 4 saat 54 dakika 28 saniye verifiable ownership history, especially in regions where property rights are difficult to enforce. This isn't a complete replacement of traditional real 4:54:36 4 saat 54 dakika 36 saniye estate. It's a transformation. Crypto doesn't eliminate the fundamentals. 4:54:40 4 saat 54 dakika 40 saniye Location, demand, and due diligence still matter, but [music] it changes how value moves, how quickly deals happen, and who gets access. So, what does all 4:54:48 4 saat 54 dakika 48 saniye of this mean for you as an investor or future home buyer? It means new opportunities are emerging. 4:54:54 4 saat 54 dakika 54 saniye Opportunities to leverage your crypto holdings. Opportunities to participate in [music] international markets more easily. Opportunities to acquire property faster and more efficiently. 4:55:04 4 saat 55 dakika 4 saniye [music] 4:55:12 4 saat 55 dakika 12 saniye Professor, 4:55:21 4 saat 55 dakika 21 saniye [music] 4:55:27 4 saat 55 dakika 27 saniye Bureaucratic 4:55:31 4 saat 55 dakika 31 saniye [music] 4:55:44 4 saat 55 dakika 44 saniye [music] 4:55:55 4 saat 55 dakika 55 saniye [music] 4:55:56 4 saat 55 dakika 56 saniye Real estate Foreign [music] 4:56:16 4 saat 56 dakika 16 saniye [music] 4:56:37 4 saat 56 dakika 37 saniye [music] 4:56:46 4 saat 56 dakika 46 saniye But like any emerging space, education is key. Working with crypto friendly agents, attorneys, and [music] escrow companies is essential. 4:56:56 4 saat 56 dakika 56 saniye Understanding your local regulations is crucial, and ensuring the security of your crypto wallet is absolutely non-negotiable. 4:57:03 4 saat 57 dakika 3 saniye [music] 4:57:04 4 saat 57 dakika 4 saniye Activos. 4:57:15 4 saat 57 dakika 15 saniye [music] 4:57:42 4 saat 57 dakika 42 saniye compliment. 4:57:47 4 saat 57 dakika 47 saniye [music] 4:57:52 4 saat 57 dakika 52 saniye Composition. 4:58:01 4 saat 58 dakika 1 saniye [music] 4:58:13 4 saat 58 dakika 13 saniye [music] 4:58:17 4 saat 58 dakika 17 saniye Funament 4:58:29 4 saat 58 dakika 29 saniye [music] 4:58:31 4 saat 58 dakika 31 saniye Maximos Maximastoch. 4:58:47 4 saat 58 dakika 47 saniye [music] 4:58:54 4 saat 58 dakika 54 saniye [music] 4:59:07 4 saat 59 dakika 7 saniye [music] 4:59:08 4 saat 59 dakika 8 saniye The cryptocurrency market has entered the opening days of 2026 with [music] renewed momentum. After a volatile end to 2025, prices across major digital 4:59:17 4 saat 59 dakika 17 saniye assets have moved sharply higher, drawing attention from both retail traders and institutional investors. In [music] early January, the total 4:59:25 4 saat 59 dakika 25 saniye cryptocurrency market capitalization climbed to around $3.2 trillion, according to aggregated data from major market trackers. 4:59:32 4 saat 59 dakika 32 saniye [music] 4:59:32 4 saat 59 dakika 32 saniye This represents a meaningful rebound from late 2025 levels with the market adding hundreds of billions of dollars in value over a relatively short period. 4:59:40 4 saat 59 dakika 40 saniye While exact figures vary, the direction is clear. Capital has returned to the crypto market at the start of the year. 4:59:46 4 saat 59 dakika 46 saniye At the center of this move is Bitcoin, which rallied toward the $93,000 level in the first week of January. As the largest and most influential [music] 4:59:54 4 saat 59 dakika 54 saniye digital asset, Bitcoin continues to act as the market's primary anchor, and its strength has [music] helped lift sentiment across the broader ecosystem. 5:00:02 5 saat 2 saniye Historically, strong Bitcoin [music] performance has often preceded periods of increased activity in alternative cryptocurrencies, and [music] early 2026 5:00:10 5 saat 10 saniye appears to be following a similar pattern. Another key factor has been renewed institutional participation, particularly through spot Bitcoin and Ethereum exchange [music] traded funds. 5:00:20 5 saat 20 saniye Reports from early January indicate notable ETF inflows, suggesting that traditional investors are once again increasing exposure to digital assets. 5:00:28 5 saat 28 saniye The current momentum appears to be driven by a combination of factors, [music] including Bitcoin's price recovery, increased ETF inflows, [music] 5:00:35 5 saat 35 saniye improved global risk sentiment, expectations of more supportive regulatory and macroeconomic conditions. 5:00:41 5 saat 41 saniye As 2026 begins, [music] the cryptocurrency market finds itself at a familiar crossroads. Renewed optimism balanced against persistent uncertainty. 5:00:49 5 saat 49 saniye Whether this earlier strength marks the beginning of a sustained trend or simply another chapter in crypto's cyclical nature is a question that only time will 5:00:57 5 saat 57 saniye answer. For now, the [music] message from the market is clear. Crypto is once again commanding attention. If you 5:01:04 5 saat 1 dakika 4 saniye approach crypto real estate with knowledge and preparation, the rewards [music] can be extraordinary. Bitcoin the bricks isn't just a catchy phrase. 5:01:13 5 saat 1 dakika 13 saniye It's the future of real estate investment. If you want to stay ahead of the curve, now's the [music] time to learn how crypto can open doors. 5:01:21 5 saat 1 dakika 21 saniye Literally. 5:01:35 5 saat 1 dakika 35 saniye Explorer 5:01:48 5 saat 1 dakika 48 saniye [music] 5:01:54 5 saat 1 dakika 54 saniye control. 5:01:58 5 saat 1 dakika 58 saniye [music] 5:02:04 5 saat 2 dakika 4 saniye [music] 5:02:21 5 saat 2 dakika 21 saniye From digital coins to physical assets, from online wallets to real world property [music] lines, cryptocurrency is reshaping how we buy, sell, and think 5:02:29 5 saat 2 dakika 29 saniye about real estate. [music] We are witnessing the merging of two worlds, the oldest asset on earth and one of the newest technological inventions [music] 5:02:37 5 saat 2 dakika 37 saniye of our time. And as the future unfolds, only one question remain. Will Bitcoin buy your next home? 5:04:10 5 saat 4 dakika 10 saniye September 2008. 5:04:13 5 saat 4 dakika 13 saniye The global financial system is on the verge of a total blackout. Layman Brothers has vanished. Meil Lynch is 5:04:21 5 saat 4 dakika 21 saniye gone. AIG is hemorrhaging billions [music] every hour. 5:04:26 5 saat 4 dakika 26 saniye In Washington, the halls of the Treasury are filled with the smartest minds in the country. But they have a problem. 5:04:34 5 saat 4 dakika 34 saniye They are staring at a black box of toxic debt worth trillions and no tools to open it. There is only one person who 5:04:43 5 saat 4 dakika 43 saniye has the map. One person who spent the last 20 years building a digital unblinking eye that can see through the 5:04:51 5 saat 4 dakika 51 saniye wreckage. The government didn't call the big banks to save the world. [music] They needed someone to handle the toxic 5:04:57 5 saat 4 dakika 57 saniye waste. And there was only one man that could lead through that darkness. They called Larry Frink. 5:05:08 5 saat 5 dakika 8 saniye Larry Frink, the man behind Black Rock. 5:05:14 5 saat 5 dakika 14 saniye [music] 5:05:15 5 saat 5 dakika 15 saniye Today, he manages more money than the GDP of almost every nation on Earth. $14 trillion. [music] 5:05:24 5 saat 5 dakika 24 saniye But before he was the shadow sovereign of Wall Street, he [music] was a man who lost everything. 5:05:30 5 saat 5 dakika 30 saniye Who is Larry Frink? Lawrence D.Fin, also known as Larry Frink, is [music] one of the co-founders of Black Rockck. He is 5:05:38 5 saat 5 dakika 38 saniye also the chairman and CEO of [music] the company, the largest money management firm in the world. It's the first 5:05:46 5 saat 5 dakika 46 saniye [music] time in history a company manages to reach such a milestone and gives a [music] clear picture of how Black Rockck operates. Not just a 5:05:54 5 saat 5 dakika 54 saniye traditional investment bank, but as a central pillar of the global financial [music] infrastructure, where its sheer 5:06:02 5 saat 6 dakika 2 saniye scale allows it to influence economies and industries at a level previously reserved only for nation states. 5:06:10 5 saat 6 dakika 10 saniye [music] 5:06:11 5 saat 6 dakika 11 saniye Founded in 1988 as an investment firm that prioritized risk management with 11.5 to [music] 14 trillion under 5:06:20 5 saat 6 dakika 20 saniye management, Black Rockck's influence is staggering. 5:06:24 5 saat 6 dakika 24 saniye Black Rockck is a top three shareholder in [music] nearly every company in the S&P 500. From Apple to Exxon, from 5:06:32 5 saat 6 dakika 32 saniye Microsoft to Nestle. They don't just invest in the market, they are the market. 5:06:40 5 saat 6 dakika 40 saniye But its reach [music] is personal. It holds the retirement dreams of over 35 million Americans. This is the story of 5:06:48 5 saat 6 dakika 48 saniye how a kid from a California shoe store became the custodian of the world's wealth. But who is Larry Frink? Lawrence 5:06:58 5 saat 6 dakika 58 saniye Douglas Frink [music] entered the world on November the 2nd, 1952. 5:07:03 5 saat 7 dakika 3 saniye Born in Los Angeles, [music] California, he was raised in a Jewish family in the heart of San Fernando Valley, [music] the quintessential American suburb of Vanois. 5:07:15 5 saat 7 dakika 15 saniye His home was a [music] balance of academic discipline and retail grit. His mother, Leela, was an English professor who valued the power [music] of language and education. 5:07:25 5 saat 7 dakika 25 saniye And long before he pulled the strings of the global economy, Larry Frink was learning the value of money on a much smaller scale. his father's shoe store 5:07:34 5 saat 7 dakika 34 saniye in Vanoise, [music] where he spent evenings helping and learning the business. As one of three children, Larry grew up in a household 5:07:43 5 saat 7 dakika 43 saniye where hard [music] work wasn't just encouraged, it was the baseline. 5:07:48 5 saat 7 dakika 48 saniye While he often joked [music] he wasn't the smartest in the room, it was this specific combination of his mother's intellectual curiosity and his father's 5:07:57 5 saat 7 dakika 57 saniye [music] main street business sense that would eventually form the DNA of a global financial giant. While the future 5:08:04 5 saat 8 dakika 4 saniye titans of Wall Street were rubbing [music] elbows in the marble halls of Harvard or Yale, Think was a brewin. In 1970, [music] Larry arrived at UCLA. 5:08:15 5 saat 8 dakika 15 saniye For a young man from Vanoise, this wasn't just a local university. It was a world of ideas. But it was in his final 5:08:24 5 saat 8 dakika 24 saniye years that the trajectory of his life shifted. He immersed himself in political science, [music] learning how power moves through 5:08:31 5 saat 8 dakika 31 saniye nations. But he soon realized that in the modern [music] world, power follows the money. This led him to the Anderson 5:08:39 5 saat 8 dakika 39 saniye School of Management [music] specializing in real estate. It was here that he began to see the world through the lens of assets and [music] yields. 5:08:49 5 saat 8 dakika 49 saniye This public education gave him a different edge. While his [music] peers at private East Coast schools were being groomed for traditional corporate roles, 5:08:57 5 saat 8 dakika 57 saniye Larry was developing the outsider's eye, a perspective that [music] allowed him to see opportunities in the messy, unpolished corners of the bond market. 5:09:09 5 saat 9 dakika 9 saniye He graduated [music] in 1976, not with a silver spoon, but with a California bred ambition to take on the [music] giants of Manhattan. 5:09:18 5 saat 9 dakika 18 saniye He was a brewin headed for Wall Street, and the financial world had no idea [music] what was coming. 5:09:29 5 saat 9 dakika 29 saniye The year is 1976. 5:09:31 5 saat 9 dakika 31 saniye New York City is a grit cover battlefield and Larry Frink has just been handed the keys to the kingdom. 5:09:38 5 saat 9 dakika 38 saniye Goldman Sachs, the most prestigious name in finance back then, has practically hired him. He had passed the technical 5:09:46 5 saat 9 dakika 46 saniye tests. He had charmed the partners. All that remained was a rubber stamp interview with human resources. 5:09:53 5 saat 9 dakika 53 saniye But Larry, Larry wasn't just confident, he was impatient. When the recruiter asked for his thoughts on the firm, 5:10:01 5 saat 10 dakika 1 saniye Larry didn't give a thank you. He gave a consultation. He pointed out the flaws in their system. At Goldman, they wanted 5:10:09 5 saat 10 dakika 9 saniye a soldier. Larry was already acting like a general. 5:10:17 5 saat 10 dakika 17 saniye In that room, the rigid Goldman way clashed with the unfiltered Frink way. 5:10:22 5 saat 10 dakika 22 saniye Before he could even hail a camp back to his hotel, the offer was dead. The most coveted job in Wall Street history had 5:10:30 5 saat 10 dakika 30 saniye vanished. All because Larry Frink couldn't stop himself from trying to fix a system he hadn't even joined yet. It 5:10:37 5 saat 10 dakika 37 saniye was a crushing blow. But in the shadow of that rejection, a door opened at a scrappy second tier firm called First 5:10:45 5 saat 10 dakika 45 saniye Boston. It was a place with less prestige but more white space. At Goldman, he would have been a cog in a 5:10:53 5 saat 10 dakika 53 saniye perfect machine. At First Boston, he was the architect. He was given a desk, a telephone, and the freedom to build 5:11:01 5 saat 11 dakika 1 saniye something entirely new. The mortgagebacked security. He didn't know it yet, but that recruiters know was the 5:11:09 5 saat 11 dakika 9 saniye foundation upon which the $14 trillion empire of Black Rockck would be built. 5:11:20 5 saat 11 dakika 20 saniye [music] 5:11:22 5 saat 11 dakika 22 saniye It's 1976 when Larry Frink arrives at First Boston. At the time, the firm was the scrappy underdog of investment 5:11:30 5 saat 11 dakika 30 saniye banking. It wasn't as stiff as Morgan [music] Stanley or as elitist as Goldman. It was the perfect laboratory 5:11:38 5 saat 11 dakika 38 saniye for a man who didn't fit the mold. Larry was assigned to the bond department. 5:11:44 5 saat 11 dakika 44 saniye Back then, bonds were considered the boring corner of finance. 5:11:48 5 saat 11 dakika 48 saniye It was where you went to retire. Stocks were sexy. Bonds were for grandmothers. 5:11:54 5 saat 11 dakika 54 saniye But Larry [music] saw something everyone else missed. 5:11:58 5 saat 11 dakika 58 saniye He looked at the American dream, the suburban house, the white picket fence, the 30-year mortgage, and he saw a math problem. 5:12:08 5 saat 12 dakika 8 saniye He realized that if you took thousands of individual home mortgages, bundled [music] them together like a deck of cards, and sold slices of that deck to investors, you created a money machine. 5:12:20 5 saat 12 dakika 20 saniye This was the birth of the securitization market. 5:12:24 5 saat 12 dakika 24 saniye What Larry Frink helped create was more than a [music] financial product. It was a structural shift. 5:12:34 5 saat 12 dakika 34 saniye Securitization didn't just bundle mortgages. It separated risk from reality. For the first time, financial 5:12:42 5 saat 12 dakika 42 saniye value could travel faster than the underlying economy that [music] supported it. A house in California became a line in a spreadsheet in New 5:12:50 5 saat 12 dakika 50 saniye York, which became a yield sold to an investor [music] in Tokyo. Risk no longer lived where decisions were made. 5:12:58 5 saat 12 dakika 58 saniye It was abstracted, sliced, repackaged, and distributed across the system. 5:13:02 5 saat 13 dakika 2 saniye [music] 5:13:03 5 saat 13 dakika 3 saniye This was the moment when finance stopped reflecting the real economy and began building a parallel one. A system that 5:13:11 5 saat 13 dakika 11 saniye could grow without limits as long as everyone believed the models were right. And for a while they were. 5:13:19 5 saat 13 dakika 19 saniye By the early 80s, [music] Larry was the golden boy. He wasn't just hitting targets, he was shattering them. In one 5:13:26 5 saat 13 dakika 26 saniye year, his department was responsible for nearly onethird of First Boston's total [music] profits. At age 31, he became 5:13:34 5 saat 13 dakika 34 saniye the youngest managing director the firm had ever seen. He was earning millions. 5:13:39 5 saat 13 dakika 39 saniye He was the successor for Prodigy, [music] the man who could do no wrong. 5:13:44 5 saat 13 dakika 44 saniye He had moved to his family to a sprawling estate. He [music] was flying private. He had conquered the grit cover battlefield of Manhattan. 5:13:55 5 saat 13 dakika 55 saniye But in the world of high finance, the higher you fly, the thinner the air becomes. 5:14:04 5 saat 14 dakika 4 saniye Larry was making hundreds of millions for the bank, but there was a ghost in the machine, a variable he hadn't 5:14:11 5 saat 14 dakika 11 saniye [music] accounted for. The year was 1986. 5:14:15 5 saat 14 dakika 15 saniye Larry had made a massive bet on interest rates. He believed they would stay stable. He was so sure of his math, so 5:14:23 5 saat 14 dakika 23 saniye confident in his track record that he didn't realize the ground was shifting beneath his feet. 5:14:30 5 saat 14 dakika 30 saniye In just 3 months, the Golden Boy department went from profit to a catastrophic $100 million loss. In the 5:14:38 5 saat 14 dakika 38 saniye 80s, 100 million wasn't just a loss. It was a national scandal. Overnight, the man who was supposed to run the bank was a pariah. The phones stopped ringing. 5:14:49 5 saat 14 dakika 49 saniye [music] The friends on the trading floor looked away when he walked by. He had been the smartest man in the room until he wasn't. [music] 5:14:57 5 saat 14 dakika 57 saniye He would later describe this moment as the most painful experience of my life. 5:15:02 5 saat 15 dakika 2 saniye But as he sat in the ruins of his reputation, [music] Larry Frink wasn't just mourning his career. He was obsessed with one question. 5:15:11 5 saat 15 dakika 11 saniye How did I not see the risk? 5:15:14 5 saat 15 dakika 14 saniye That obsession, the fear of the unknown variable, would become the cornerstone of Black Rockck. 5:15:26 5 saat 15 dakika 26 saniye By 1983, Larry wasn't just selling bonds, he was a pioneer of the CMO, collateralized mortgage obligation. 5:15:36 5 saat 15 dakika 36 saniye Think of it like a waterfall. Larry took thousands of mortgages and sliced them into tranches. Some investors took the 5:15:44 5 saat 15 dakika 44 saniye top slice, low risk, low reward. Others took the bottom, high risk, high yield. 5:15:51 5 saat 15 dakika 51 saniye It was a masterpiece of financial engineering. It made the illquid liquid. 5:15:56 5 saat 15 dakika 56 saniye It made first Boston the center of the universe. 5:16:01 5 saat 16 dakika 1 saniye But there was a flaw, a tiny mathematical [music] ghost in his models. Larry's team had predicted that interest rates would rise and they 5:16:10 5 saat 16 dakika 10 saniye hedged their bets accordingly. But in the second quarter of 1986, rates [music] did something the models said 5:16:17 5 saat 16 dakika 17 saniye was impossible. They plummeted because they didn't have a system to track their real-time exposure. Larry 5:16:24 5 saat 16 dakika 24 saniye was flying blind. [music] He was the pilot of a Boeing 747 trying to land in a storm using nothing but a 5:16:31 5 saat 16 dakika 31 saniye compass and a prayer. By the time he realized the engines were on fire, the plane had already hit the [music] mountain. $100 million. 5:16:41 5 saat 16 dakika 41 saniye All gone. He wasn't just fired, he was erased. 5:16:50 5 saat 16 dakika 50 saniye After the dust settled, Larry found himself in a peculiar kind of exile. He wasn't just unemployed, he was haunted. 5:16:58 5 saat 16 dakika 58 saniye He realized that the $100 million loss [music] wasn't a failure of talent, it was a failure of vision. What happened 5:17:05 5 saat 17 dakika 5 saniye in 1986 [music] wasn't a personal miscalculation. It was a systemic blindness. 5:17:12 5 saat 17 dakika 12 saniye At the time, every major financial [music] institution operated the same way. Positions were fragmented. Exposure 5:17:20 5 saat 17 dakika 20 saniye was estimated, not measured. Risk was inferred after the fact. Banks knew what they bought [music] yesterday, but not 5:17:28 5 saat 17 dakika 28 saniye what it was worth right now. The system rewarded speed, volume, and confidence, not understanding. And as long as 5:17:36 5 saat 17 dakika 36 saniye markets [music] moved slowly, the illusion held. But once volatility entered the [music] market, no one truly knew where the danger was or how large 5:17:45 5 saat 17 dakika 45 saniye it had become. Larry didn't [music] just lose money. He realized the entire financial system was flying without 5:17:52 5 saat 17 dakika 52 saniye instruments. Wall Street was 5:17:55 5 saat 17 dakika 55 saniye [music] 5:17:55 5 saat 17 dakika 55 saniye essentially a collection of blind giants. Every major firm, Goldman, Layman, Meil Lynch, was standing just 5:18:03 5 saat 18 dakika 3 saniye one inch away from total collapse at any given second. Why? Because they didn't actually know what they owned. This was information blindness. 5:18:16 5 saat 18 dakika 16 saniye In the 1980s, [music] you knew what you bought yesterday, but you had no idea what it was worth right now. A sudden 5:18:24 5 saat 18 dakika 24 saniye shift in interest rates or a political coup across the ocean could vaporize a billion [music] dollars before the morning coffee was poured. 5:18:34 5 saat 18 dakika 34 saniye Larry understood a terrifying truth. The entire global financial system was built on a foundation of guesswork. 5:18:43 5 saat 18 dakika 43 saniye It hit him with the force of an epiphany. If he could build a brain, a machine that could see the risk that 5:18:50 5 saat 18 dakika 50 saniye humans were too slow to calculate, he wouldn't just be a banker. He would be the only man in the world with a 5:18:57 5 saat 18 dakika 57 saniye flashlight in a dark room. This realization changed his entire philosophy of investing. He stopped 5:19:05 5 saat 19 dakika 5 saniye looking for the big score and [music] started looking for the safe passage. He didn't want to beat the market anymore. 5:19:12 5 saat 19 dakika 12 saniye He wanted to measure it. 5:19:16 5 saat 19 dakika 16 saniye He would later [music] tell his partners, "We are never going to be blind again." That vow [music] born from the 5:19:23 5 saat 19 dakika 23 saniye humiliation of 1986 became the blueprint for a new kind of firm. A firm that didn't rely on the ego of a [music] star 5:19:31 5 saat 19 dakika 31 saniye trader, but on the cold, unblinking eye of technology. 5:19:42 5 saat 19 dakika 42 saniye Larry Frink was a man with a vision, but he was also a man with a tainted resume. 5:19:48 5 saat 19 dakika 48 saniye To the rest of Wall Street, he was the guy who lost a h 100red million. But to a small circle of insiders at First Boston, he was the only one who truly 5:19:57 5 saat 19 dakika 57 saniye understood why it happened. He began making calls. He wasn't offering high salaries or flashy offices. He was 5:20:06 5 saat 20 dakika 6 saniye offering a chance to build a holy grail, a financial firm where technology governed the ego, not the other way 5:20:13 5 saat 20 dakika 13 saniye round. And he eventually found the right people to help him build that holy grail. [music] 5:20:22 5 saat 20 dakika 22 saniye Rob Capito, the enforcer, a powerhouse trader who knew the plumbing of the bond market better than anyone else. He 5:20:31 5 saat 20 dakika 31 saniye provided the muscle Larry needed to execute the vision. Ben Golib, the Oracle, a PhD with a mind like a 5:20:40 5 saat 20 dakika 40 saniye supercomput. While other bankers were focused on lunch reservations, Golib was thinking about value at risk and Monte Carlo simulations. 5:20:51 5 saat 20 dakika 51 saniye Susan Wagner, the mastermind, brilliant, calculating, and capable of seeing structural flaws in a 5:20:58 5 saat 20 dakika 58 saniye multi-billion dollar merger before a single paper was signed. Along with Barbara Novik, Ralph Schlostein, Hugh 5:21:05 5 saat 21 dakika 5 saniye Freighter, and Keith Anderson, they became the original eight. [music] Frink wasn't looking for bankers who would run 5:21:12 5 saat 21 dakika 12 saniye after the money. He wanted architects, people who were tired of being blind. 5:21:19 5 saat 21 dakika 19 saniye When he found them, they met in living rooms and coffee [music] shops. They had the blueprints for a system they called 5:21:26 5 saat 21 dakika 26 saniye Aladdin, an acronym for asset, liability, debt, and derivative investment network. It was designed to 5:21:34 5 saat 21 dakika 34 saniye be the unblinking eye Larry had dreamed of in his exile. But a brain without a body is just a dream. To build Aladdin, 5:21:43 5 saat 21 dakika 43 saniye they needed hardware. They needed offices. And most importantly, they needed the one thing Larry's reputation 5:21:50 5 saat 21 dakika 50 saniye had cost him. Capital. Aladdin was not designed to beat the market. It was designed to understand it. But its real 5:21:58 5 saat 21 dakika 58 saniye power emerged when others started using it. Banks, insurance companies, pension 5:22:05 5 saat 22 dakika 5 saniye funds, sovereign institutions. As Aladdin spread, something subtle happened. Risk stopped being subjective. 5:22:14 5 saat 22 dakika 14 saniye It became standardized. When Aladdin flagged an asset as dangerous, entire markets adjusted accordingly, 5:22:23 5 saat 22 dakika 23 saniye not because Larry Frink said so, but because the system trusted the model. At that point, Black Rockck was no longer 5:22:31 5 saat 22 dakika 31 saniye just managing money. It was helping define how risk itself was understood. 5:22:35 5 saat 22 dakika 35 saniye [music] 5:22:36 5 saat 22 dakika 36 saniye And whoever defines risk defines the boundaries of decisionmaking. 5:22:51 5 saat 22 dakika 51 saniye Enter Steven Schwartzman. In 1988, Schwartzman was the rising king of private equity. His firm Blackstone was aggressive, [music] wealthy, and hungry. 5:23:03 5 saat 23 dakika 3 saniye The meeting was tense. Schwartzman knew Larry's history. He knew about the 1986 [music] disaster. But Larry didn't hide 5:23:12 5 saat 23 dakika 12 saniye from it. He used it as his primary selling point. Because Larry had seen the end of the world already, he knew 5:23:20 5 saat 23 dakika 20 saniye exactly how the lights went out. And because of that, he was the only one who knew how to keep them on. 5:23:27 5 saat 23 dakika 27 saniye Larry's pitch was revolutionary. He didn't want to start a hedge fund. He wanted to create a fiduciary company, a 5:23:35 5 saat 23 dakika 35 saniye firm that managed other people's money with the same technological rigor usually reserved for NASA. 5:23:41 5 saat 23 dakika 41 saniye He asked for a $5 million credit line and a partnership. In exchange, Schwartzman would own 50% of the new 5:23:49 5 saat 23 dakika 49 saniye venture. He knew he was buying cheap because he was buying on a distressed [music] asset, Frink's damaged reputation. 5:23:57 5 saat 23 dakika 57 saniye But he did so betting on the idea that the experience had turned Larry Frink into some sort of financial genius. 5:24:06 5 saat 24 dakika 6 saniye The deal was done. On a Friday in March 1988, the team moved into a single cramped room within Blackstone's [music] offices. 5:24:15 5 saat 24 dakika 15 saniye They were five computers, a few folding chairs, and a mountain of cables on the floor. They were under the Blackstone 5:24:23 5 saat 24 dakika 23 saniye umbrella. But Larry knew that this was just a temporary shelter. He didn't just want a department, he wanted an empire. 5:24:31 5 saat 24 dakika 31 saniye He had the money, he [music] had the team. And in the corner of that small room, the first lines of code for Aladdin were being written. 5:24:41 5 saat 24 dakika 41 saniye The information blindness was over. The era of Black Rock, though it didn't have that name yet, had begun. 5:24:49 5 saat 24 dakika 49 saniye [music] 5:24:54 5 saat 24 dakika 54 saniye The first office of Blackstone Financial Management wasn't a glass tower. It was a glorified closet. Because of the heat 5:25:02 5 saat 25 dakika 2 saniye generated by the early Sun Micro Systemystems workstations, the temperature in the room rarely dropped below 80° [music] 27° C. 5:25:13 5 saat 25 dakika 13 saniye While the rest of the Blackstone group was out at expensive lunches closing leveraged buyouts, Larry's original eight were building a digital [music] fortress. 5:25:24 5 saat 25 dakika 24 saniye They were the weirdos in the basement. 5:25:26 5 saat 25 dakika 26 saniye [music] It was here that the name Aladdin became a living thing. Every day, Ben Golab and his team fed [music] 5:25:33 5 saat 25 dakika 33 saniye it data. Interest rates, housing prices, historical crashes. They [music] were teaching the machine to be afraid of everything Larry hadn't seen in 1986. 5:25:49 5 saat 25 dakika 49 saniye By 1992, the department inside Blackstone was no longer a startup. 5:25:53 5 saat 25 dakika 53 saniye [music] It was a powerhouse. Larry's team was managing $17 billion. 5:26:00 5 saat 26 dakika They weren't just a side project anymore. They were a significant engine of Blackstone's [music] growth. But with success came a toxic byproduct, identity confusion. 5:26:11 5 saat 26 dakika 11 saniye Clients were getting confused. They would call [music] Blackstone looking for Larry's bond expertise or call Larry looking for Schwarzman's buyouts. But 5:26:21 5 saat 26 dakika 21 saniye the friction went deeper [music] than a name. It was a war of philosophies. 5:26:25 5 saat 26 dakika 25 saniye Schwartzman was a dealmaker. He wanted to own companies. Think was a [music] fiduciary. He wanted to manage risk for others. 5:26:35 5 saat 26 dakika 35 saniye The tension was similar to having two predators [music] in a cage too small to fit both. The breaking point came over 5:26:42 5 saat 26 dakika 42 saniye equity. Larry wanted [music] to use stock to attract and keep the original eight and new talent. Schwarzman, 5:26:49 5 saat 26 dakika 49 saniye [music] holding 50% of the firm, didn't want to dilute his state. The partnership that saved [music] Larry's career was now suffocating his vision. 5:26:58 5 saat 26 dakika 58 saniye In 1994, they reached a deal. 5:27:03 5 saat 27 dakika 3 saniye Schwarzman agreed [music] to sell Blackstone steak for $240 million. At the time, it seemed like a win for [music] Schwarzman, a massive return on 5:27:12 5 saat 27 dakika 12 saniye his $5 million investment. It wasn't just about money. [music] It was about the spotlight. Schwarzman was the king 5:27:19 5 saat 27 dakika 19 saniye of Wall Street, [music] but his subtenant, Larry Frink, was the one the New York Times wanted to interview. But for Larry, it [music] was the price of 5:27:28 5 saat 27 dakika 28 saniye freedom. Schwarzman would later call selling Black Rock the worst mistake of my career. For Larry, [music] the 5:27:36 5 saat 27 dakika 36 saniye divorce was the moment the training wheels came off. He was no longer under anyone's umbrella. He was the [music] 5:27:42 5 saat 27 dakika 42 saniye CEO of an independent firm. Now he just had to prove he could survive the coming storm of the late [music] '9s. 5:27:59 5 saat 27 dakika 59 saniye It is 2008. The financial world was experiencing a heart attack. The financial smoothies that mortgage back 5:28:07 5 saat 28 dakika 7 saniye securities Larry had helped create 30 years earlier had [music] turned into a global poison. Banks didn't know what 5:28:14 5 saat 28 dakika 14 saniye they owned. And more importantly, they didn't know what their neighbors owned. Trust had evaporated. 5:28:22 5 saat 28 dakika 22 saniye When the US government realized the economy was [music] on the brink of a total blackout, they didn't call Goldman Sachs. They didn't call JP Morgan. While 5:28:31 5 saat 28 dakika 31 saniye the CEOs of Layman and Merrill were begging for government [music] checks, Larry Frink was the one the government called to write the checks. 5:28:40 5 saat 28 dakika 40 saniye He was the only titan left standing with a clean balance sheet. 5:28:45 5 saat 28 dakika 45 saniye The United States government didn't just seek advice, it delegated responsibility. 5:28:51 5 saat 28 dakika 51 saniye Black Rockck was [music] tasked with valuing assets no one understood, managing risks no one could measure and stabilizing markets that were collapsing in real time. 5:29:02 5 saat 29 dakika 2 saniye This wasn't a bailout. It was an outsourcing of core sovereign functions. 5:29:07 5 saat 29 dakika 7 saniye [music] 5:29:08 5 saat 29 dakika 8 saniye For the first time, a private firm played a central role in maintaining global financial stability. Not through political authority, [music] but through technical capability. 5:29:19 5 saat 29 dakika 19 saniye From that moment on, power was no longer just [music] about laws and institutions. It was about who had the tools to see the system clearly. 5:29:29 5 saat 29 dakika 29 saniye Black Rockck was hired to manage the toxic waste of the crisis. 5:29:33 5 saat 29 dakika 33 saniye They became the official cleaner for the US government, managing $130 billion of troubled assets. 5:29:42 5 saat 29 dakika 42 saniye Suddenly, Larry Frink was the most powerful man in the room, acting as an adviser to the president and the treasury. 5:29:50 5 saat 29 dakika 50 saniye But while he was saving the system, he saw a once-ina-lifetime opportunity to dominate it. In the middle of the 5:29:58 5 saat 29 dakika 58 saniye carnage, Barclay's bank in the UK was desperate for cash. They needed to sell their crown jewel, a division called 5:30:05 5 saat 30 dakika 5 saniye Barclay's Global Investors, which included a revolutionary product called Eyesshares. 5:30:12 5 saat 30 dakika 12 saniye Eyesshares represented passive investing. ETFs that track the whole market rather than trying to beat it. It 5:30:19 5 saat 30 dakika 19 saniye was the ultimate expression of Larry's philosophy. Stop betting on stars and start owning the system. It was a massive $13.5 billion gamble. 5:30:31 5 saat 30 dakika 31 saniye If the markets continue to fall, deal could sink Black Rockck. But Larry knew something the others didn't. He had 5:30:38 5 saat 30 dakika 38 saniye looked into the eye of Aladdin, and Aladdin told him that the bottom was near. With the acquisition of Eyesshares 5:30:45 5 saat 30 dakika 45 saniye in 2009, Black Rockck doubled its size overnight. They weren't just a bond shop anymore. They were now the largest money 5:30:54 5 saat 30 dakika 54 saniye manager on the planet. They had gone into the crisis as a respected firm. 5:30:59 5 saat 30 dakika 59 saniye They came out of it as the shadow government of finance. 5:31:10 5 saat 31 dakika 10 saniye By 2012, [music] Larry Frink had built the machine. He had the assets, the data, and the influence. [music] But he realized that being king of Wall 5:31:19 5 saat 31 dakika 19 saniye Street wasn't enough. He wanted to [music] change the way the world did business. Every January, a ritual began 5:31:27 5 saat 31 dakika 27 saniye that would send tremors through boardrooms from Detroit to Frankfurt. 5:31:31 5 saat 31 dakika 31 saniye Larry started writing letters. They weren't just annual reports. They were the Black Rockck Manifestos. 5:31:41 5 saat 31 dakika 41 saniye In 2018, he dropped a bomb. He told the world's CEOs that if they wanted Black Rockck's money, they had to prove they 5:31:49 5 saat 31 dakika 49 saniye served a social purpose. He wasn't just asking for profits. He was asking for a soul. He was mainstreaming [music] 5:31:57 5 saat 31 dakika 57 saniye ESG, environmental, social, and governance. And he was doing it with a $10 trillion hammer. But Larry's new 5:32:07 5 saat 32 dakika 7 saniye gospel [music] didn't sit well with everyone. By 2021, the golden boy was finding himself in the middle of a two-front war. 5:32:17 5 saat 32 dakika 17 saniye The ESG debate was never cultural. It was economic. 5:32:22 5 saat 32 dakika 22 saniye At its core, ESG [music] was about risk management, anticipating regulation, climate disruption, and social instability. 5:32:30 5 saat 32 dakika 30 saniye For Black Rockck, ignoring [music] those factors wasn't neutral. It was dangerous. But when capital begins [music] to price the future, it also 5:32:39 5 saat 32 dakika 39 saniye begins to shape it. That's why the backlash was so intense. 5:32:44 5 saat 32 dakika 44 saniye To the left, Larry was a hypocrite. They called him [music] a greenwasher because Black Rockck still held billions in oil and gas stocks. To the right, he [music] 5:32:53 5 saat 32 dakika 53 saniye was a globalist villain who was using other people's money to push a radical environmental [music] agenda. The backlash turned into a full-scale political assault. 5:33:05 5 saat 33 dakika 5 saniye State treasurers in Florida, Texas, and Mississippi began pulling billions out of Black Rockck. They accused Larry of 5:33:12 5 saat 33 dakika 12 saniye boycotting energy and [music] violating his duty to investors. 5:33:17 5 saat 33 dakika 17 saniye For the first time, the man who had mastered risk found himself in a risk he couldn't calculate, [music] the culture war. 5:33:29 5 saat 33 dakika 29 saniye He told a crowd in Aspen that he was ashamed to be a part of the debate. He even stopped using the term ESG altogether, calling it weaponized. 5:33:39 5 saat 33 dakika 39 saniye He had tried to become the conscience of capitalism. Instead, it became its most controversial target. But even [music] as the politicians shouted and the 5:33:48 5 saat 33 dakika 48 saniye protesters marched, the assets kept growing. [music] Because in the end, whether you loved 5:33:55 5 saat 33 dakika 55 saniye him or hated him, you couldn't escape the machine he built. [music] 5:34:09 5 saat 34 dakika 9 saniye January 2026, the number flashes on a terminal in Black Rockck's Hudson Yards headquarters. $14 trillion. 5:34:19 5 saat 34 dakika 19 saniye It is a number so vast it defies human comprehension. 5:34:24 5 saat 34 dakika 24 saniye If Larry thinks assets [music] under management were a country's GDP, it would be the third largest economy on Earth, surpassed only by the United States [music] and China. 5:34:35 5 saat 34 dakika 35 saniye But as Larry looks out from his office, he isn't looking at stock tickers. He is looking at the very bones of civilization. 5:34:46 5 saat 34 dakika 46 saniye In 2024, Larry made his final [music] most aggressive pivot. He realized that the next decade won't be one with 5:34:54 5 saat 34 dakika 54 saniye [music] bits on a screen, but with atoms in the ground. With the 12.5 billion [music] acquisition of global 5:35:02 5 saat 35 dakika 2 saniye infrastructure partners, Larry signaled the end of the [music] old Wall Street era. Larry saw the AI revolution coming. 5:35:10 5 saat 35 dakika 10 saniye But he didn't buy the chip [music] makers. He bought the power plants that feed the chips. 5:35:20 5 saat 35 dakika 20 saniye But every empire faces the same inevitable [music] question. Succession. 5:35:29 5 saat 35 dakika 29 saniye For years, Wall Street has whispered about who could possibly replace the man who is Black Rockck. Names like Rob 5:35:36 5 saat 35 dakika 36 saniye Capito, Mark Weirman, [music] and Jennifer Johnson swirl in the press. But the truth is more complex. Larry hasn't 5:35:44 5 saat 35 dakika 44 saniye [music] just built a company. He's built an organism. A system where Aladdin, now [music] a very sophisticated AI entity, 5:35:51 5 saat 35 dakika 51 saniye handles the risk while a legion of 20,000 employees, [music] executes the vision. Aladdin is no longer just a 5:35:58 5 saat 35 dakika 58 saniye calculator. It is a predictive engine that runs millions of [music] simulations every second, anticipating everything from a war in the Middle East to a crop [music] failure in Brazil. 5:36:10 5 saat 36 dakika 10 saniye Some call him the king of the world, others call him the shadow architect. 5:36:16 5 saat 36 dakika 16 saniye But if you ask Larry, he'll tell you he's [music] still that kid from the Van Noise shoe store, just trying to make sure that the maths add up. 5:36:27 5 saat 36 dakika 27 saniye He took the greatest humiliation of his life and turned it [music] into a shield for the global economy. 5:36:33 5 saat 36 dakika 33 saniye He taught the world that profit without a plan is just a gamble and that in the dark, the man with the flashlight is king. 5:36:43 5 saat 36 dakika 43 saniye There is one financial question the system cannot answer. What happens [music] when everyone measures risk the 5:36:50 5 saat 36 dakika 50 saniye same way? When models converge. When assumptions align. When diversity of [music] judgment disappears. 5:36:57 5 saat 36 dakika 57 saniye A system optimized for stability can become fragile. Not because [music] it is wrong but because it leaves no room for the unexpected. 5:37:06 5 saat 37 dakika 6 saniye When the supervisor becomes invisible and the rules are embedded in code, accountability becomes harder to locate, 5:37:14 5 saat 37 dakika 14 saniye the system works until it doesn't. And that's why Blackprop isn't just a shareholder in your company. They are 5:37:22 5 saat 37 dakika 22 saniye the landlord of your power plant, the owner of your airport, the architect of your retirement. It is a level of 5:37:29 5 saat 37 dakika 29 saniye centralized influence the world has never seen [music] in a private individual. Lawrence D.Fin didn't just 5:37:36 5 saat 37 dakika 36 saniye build a bank. He built the unblinking eye of [music] capitalism. 5:37:41 5 saat 37 dakika 41 saniye And as the world moves into the era of AI, climate shift, and global restructuring, one [music] thing is certain. Black Rockck will be there, 5:37:51 5 saat 37 dakika 51 saniye watching, calculating, and growing. 5:39:17 5 saat 39 dakika 17 saniye It's just a small plastic brick. 5:39:20 5 saat 39 dakika 20 saniye Lightweight, simple, unchanged since 1958. 5:39:27 5 saat 39 dakika 27 saniye And yet, it has built entire universes. 5:39:31 5 saat 39 dakika 31 saniye Lego constructions truly take us back to childhood. 5:39:36 5 saat 39 dakika 36 saniye But they stay with us throughout our entire lives. From bedrooms to boardrooms, from playgrounds to Hollywood, Lego has shaped generations. 5:39:46 5 saat 39 dakika 46 saniye When I design something from scratch, I start with an idea that occurs to me at [music] any time of day. 5:39:53 5 saat 39 dakika 53 saniye I try to build it with Lego and see what I come up with. In a global toy market worth more [music] than $120 billion, 5:40:02 5 saat 40 dakika 2 saniye LEGO stands alone. A single company [music] controlling nearly one in every $10 spent on toys worldwide. 5:40:10 5 saat 40 dakika 10 saniye Lego holds a leading position worldwide, recognized above all for its playability. 5:40:16 5 saat 40 dakika 16 saniye What if the most beloved toy in the world almost didn't exist? 5:40:22 5 saat 40 dakika 22 saniye Discover the incredible journey of a small, struggling carpentry shop. The dared to dream bigger than anyone thought possible. 5:40:31 5 saat 40 dakika 31 saniye This is the untold story of the [music] visionary who built Lego. 5:40:36 5 saat 40 dakika 36 saniye Transforming simple wooden bricks into a multi-billion dollar empire and forever changing how we play. 5:40:46 5 saat 40 dakika 46 saniye But none of this [music] began with billiondoll charts or cinematic universes. It began with a carpenter with a vision. 5:40:55 5 saat 40 dakika 55 saniye In a tiny Danish [music] village, one man had a dream. Building toys out of scraps of wood. 5:41:11 5 saat 41 dakika 11 saniye Ole Christensen was born in 1891 in western Denmark, a place defined by silence, soil, and hard work. 5:41:21 5 saat 41 dakika 21 saniye He grew up poor, like most children in the Jutland countryside. 5:41:26 5 saat 41 dakika 26 saniye But he learned the value of craftsmanship early. When you made something, it had to last. 5:41:34 5 saat 41 dakika 34 saniye He apprenticed as a carpenter. It was not a really glamorous work, but meticulous, honest, a craft that matched Ola's character and manners. 5:41:46 5 saat 41 dakika 46 saniye Ola traveled through Denmark, [music] Germany, and Norway. Everywhere he went, he left a reputation. Precise, patient, relentless. 5:41:57 5 saat 41 dakika 57 saniye In 1916, [music] Ole returned home and bought a workshop in a place that barely existed on the 5:42:03 5 saat 42 dakika 3 saniye map. Bund. No shops, no train station, just a handful of families trying to survive the Danish winds. 5:42:12 5 saat 42 dakika 12 saniye Don't worry, I'm fine. I'm fine. But 8 years later, disaster struck. Oh. Oh. Oh, no. 5:42:19 5 saat 42 dakika 19 saniye In 1924, a fire tore through his workshop. Oh god, no. Please, no. Oh my god. Everything burned. 5:42:27 5 saat 42 dakika 27 saniye tools, wood, orders, and a lifetime of savings, all gone. 5:42:34 5 saat 42 dakika 34 saniye But Olair didn't quit. He rebuilt and rebuilt [music] bigger than before. Not because it was safe, but because he 5:42:43 5 saat 42 dakika 43 saniye refused to let Billand disappear into the wind. 5:42:48 5 saat 42 dakika 48 saniye Then came the Great Depression. [music] Houses weren't being built. Doors weren't being ordered. bills weren't being paid. 5:42:57 5 saat 42 dakika 57 saniye Ole had workers depending on him, families depending on him. So, he did something unexpected. He began crafting 5:43:06 5 saat 43 dakika 6 saniye small wooden toys. They were simple, durable, and beautiful. 5:43:13 5 saat 43 dakika 13 saniye Locals mocked him. A grown man making toys for children. You'll never survive. 5:43:20 5 saat 43 dakika 20 saniye But Ola believed that play and fun was a serious business. 5:43:25 5 saat 43 dakika 25 saniye In 1934, he held a contest to name the new toy company. He chose a short word, Lego. 5:43:33 5 saat 43 dakika 33 saniye It was not only a simple idea, but a philosophy and a promise. 5:43:39 5 saat 43 dakika 39 saniye He hung a sign in the workshop. Only the best is good enough. It wasn't marketing. It was his identity. 5:43:50 5 saat 43 dakika 50 saniye [panting] 5:43:52 5 saat 43 dakika 52 saniye Oh god, not again. 5:43:53 5 saat 43 dakika 53 saniye In 1942, Ola faced another fire. This time it was bigger, more devastating. 5:44:01 5 saat 44 dakika 1 saniye Every blueprint, every toy, every dream he had turned into smoke. But he had built himself the hardship. 5:44:10 5 saat 44 dakika 10 saniye And once more, he rebuilt the factory stronger than the two previous [music] ones. In 1947, at the worst economic 5:44:20 5 saat 44 dakika 20 saniye moment, Ola made the riskiest choice of his life. He spent more than twice the company's annual profits on a strange 5:44:28 5 saat 44 dakika 28 saniye new machine, one that worked not with wood, but with plastic. 5:44:34 5 saat 44 dakika 34 saniye Retailers hated plastic. Parents distrusted it. But Ola saw something they didn't. Precision, repeatability, 5:44:42 5 saat 44 dakika 42 saniye and possibilities. Endless possibilities. 5:44:47 5 saat 44 dakika 47 saniye Only two years later, in 1949, LEGO released the first plastic bricks of its history. They didn't click. They 5:44:56 5 saat 44 dakika 56 saniye weren't perfect, but they were the beginning. 5:45:06 5 saat 45 dakika 6 saniye The idea was good, but and his team faced setbacks while designing the bricks that had cemented Lego's identity through the years. 5:45:14 5 saat 45 dakika 14 saniye The plastic bricks didn't grip. This was a major problem for a building set because buildings collapsed. Towers fell 5:45:23 5 saat 45 dakika 23 saniye in front of their eyes. Apparently, Lego wasn't created to build. And then in 1958, everything changed. 5:45:34 5 saat 45 dakika 34 saniye Unlike 20 years ago, LEGO today allows us to build many more things because they have released more realistic colors and shapes. 5:45:44 5 saat 45 dakika 44 saniye In the past, the pieces were mostly square. Today, there is a much wider variety of shapes, including more rounded elements, which allow us to 5:45:53 5 saat 45 dakika 53 saniye create more ergonomic forms, ones that more closely resemble the kinds of buildings and structures we see in everyday life. 5:46:02 5 saat 46 dakika 2 saniye Engineers at LEGO perfected a simple but ingenious solution. hollow tubes inside the brick. 5:46:11 5 saat 46 dakika 11 saniye Paired with the studs on top, the geometry created what LEGO calls clutch power. Not too [music] tight, not too loose, just perfect. 5:46:22 5 saat 46 dakika 22 saniye This was not just an adjustment or improvement. It was the birth of what we know [music] today as a Lego brick. The 5:46:29 5 saat 46 dakika 29 saniye brick that today can still be used with the modern ones. 5:46:34 5 saat 46 dakika 34 saniye the brick that [music] was the foundation of a company that still makes history today. That same year, Bego filed the patent. 5:46:43 5 saat 46 dakika 43 saniye They had something worth [music] protecting, and OA knew that sooner or later, it would be replicated. 5:46:50 5 saat 46 dakika 50 saniye It was January the 28th, 1958 when the patent was filed. Later that year, [music] Ole Kirk Christensen passed away. 5:47:00 5 saat 47 dakika And sadly, he never lived to see how far his brick would travel. 5:47:15 5 saat 47 dakika 15 saniye After his father died, Godfred Kerr Christensen stepped in. He wasn't inheriting the company. He was 5:47:23 5 saat 47 dakika 23 saniye inheriting a philosophy, one he had been raised [music] with. His father wasn't around anymore, but the original spirit 5:47:30 5 saat 47 dakika 30 saniye of Lego lived on in the second Christensen [music] generation. But he also had something to add. 5:47:37 5 saat 47 dakika 37 saniye Godfred believed Lego should be more than toys. It should be a system. A system where [music] every piece 5:47:44 5 saat 47 dakika 44 saniye connected with every other piece across every set. 5:47:49 5 saat 47 dakika 49 saniye This created a language [music] of creativity and possibilities. And a single idea changed everything. 5:47:56 5 saat 47 dakika 56 saniye Suddenly, LEGO [music] wasn't a collection of toys, but an entire universe. 5:48:03 5 saat 48 dakika 3 saniye The company began to grow far beyond its original frontiers. [music] During the 1960s and '7s, Lego expanded across Europe, Germany, Sweden, the UK. 5:48:16 5 saat 48 dakika 16 saniye Band, once [music] a small village, became a global hub of play. Lego then built its own airport, factories, and 5:48:24 5 saat 48 dakika 24 saniye distribution centers. In the world of construction toys, we know that Lego isn't the only brand around. 5:48:32 5 saat 48 dakika 32 saniye What Lego provides is a quality product. 5:48:37 5 saat 48 dakika 37 saniye Maybe one part is wrong for every 10,000 or 100,000 items. And if you are missing an item from a box, or if it is faulty, 5:48:45 5 saat 48 dakika 45 saniye the company's after sales service will not question the fact that you are missing a part. 5:48:53 5 saat 48 dakika 53 saniye And then the magic happened. 5:48:56 5 saat 48 dakika 56 saniye Lego introduced something no toy company had done at scale. Fully themed worlds. 5:49:03 5 saat 49 dakika 3 saniye Space town castles. 5:49:07 5 saat 49 dakika 7 saniye Children weren't just building structures anymore. They were building stories. 5:49:13 5 saat 49 dakika 13 saniye In 1978, LEGO released its most iconic invention since the brick, the minifigure. 5:49:20 5 saat 49 dakika 20 saniye It had a simple face, hands shaped like a sea and feet made to stand on [music] studs. A tiny character that let kids 5:49:29 5 saat 49 dakika 29 saniye project themselves into entire universes. 5:49:32 5 saat 49 dakika 32 saniye Stories now had heroes and Lego [music] had a heartbeat. In the late 1970s, Lego was already run by the third Christensen 5:49:41 5 saat 49 dakika 41 saniye generation. Ole's grandson [music] killed began shaping the company into the global powerhouse we know today. 5:49:50 5 saat 49 dakika 50 saniye He did so by creating [music] more sophisticated lines, bringing in new universes, technic brought mechanics, 5:49:58 5 saat 49 dakika 58 saniye pirates brought adventure, and trains brought motion. By the late 20th century, the global toy market was 5:50:06 5 saat 50 dakika 6 saniye becoming massive. Tens of billions of dollars a year worth. 5:50:11 5 saat 50 dakika 11 saniye The United States [music] spent more on toys than any country on Earth. And China produced [music] most of them, nearly 3/4 of the world's total. 5:50:21 5 saat 50 dakika 21 saniye In this booming landscape, Lego wasn't just another toy. It was the toy. 5:50:27 5 saat 50 dakika 27 saniye [music] 5:50:34 5 saat 50 dakika 34 saniye By the late 1990s, [music] Lego was flying high. It had become one of the most admired companies in Europe. 5:50:42 5 saat 50 dakika 42 saniye A creative powerhouse [music] built on the philosophy of imagination and creation. We're not focused only on childhood, but on [music] something that 5:50:49 5 saat 50 dakika 49 saniye has quite literally built us, pun intended, shaping our personalities through Lego from an early age. Those memories became a foundation we've kept building on over time. 5:51:01 5 saat 51 dakika 1 saniye [music] 5:51:02 5 saat 51 dakika 2 saniye That's why exhibitions like this bring us straight back to childhood. The audience here is very diverse, but once people walk in, they all become the boy or girl they once were. 5:51:13 5 saat 51 dakika 13 saniye But it's not all gold that glitters. 5:51:16 5 saat 51 dakika 16 saniye Under the surface, something dangerous was creeping in. The toy market was changing fast. Children were spending 5:51:24 5 saat 51 dakika 24 saniye more and more [music] time with video games and early computer entertainment. 5:51:28 5 saat 51 dakika 28 saniye Sony's PlayStation, Nintendo, and Hasbro's electronic [music] toys were capturing attention. And LEGO, 5:51:35 5 saat 51 dakika 35 saniye determined not to fall behind, expanded too far too fast. 5:51:40 5 saat 51 dakika 40 saniye Throughout the 1990s, [music] LEGO began introducing thousands of completely new pieces, specialized parts that not only 5:51:48 5 saat 51 dakika 48 saniye worked in one set. A single year could bring more than 350 new designs. Each of them costing tens of thousands of 5:51:57 5 saat 51 dakika 57 saniye dollars in steel machining and precision engineering. 5:52:01 5 saat 52 dakika 1 saniye In 2002, LEGO had more than 12,000 active elements. The system of play, once 5:52:08 5 saat 52 dakika 8 saniye simple and universal, was becoming chaotic and difficult to follow. LEGO also tried becoming a lifestyle brand. 5:52:17 5 saat 52 dakika 17 saniye New ventures appeared everywhere. 5:52:19 5 saat 52 dakika 19 saniye Clothing lines, theme parks, homegoods, cartoon series, even watches and sneakers. 5:52:26 5 saat 52 dakika 26 saniye But these projects drained resources without reinforcing the core product. 5:52:31 5 saat 52 dakika 31 saniye the brick. And between 1999 and [music] 2003, LEGO sales collapsed. 5:52:39 5 saat 52 dakika 39 saniye During these years, the company went from doubledigit growth to struggling. 5:52:43 5 saat 52 dakika 43 saniye [music] And by 2003, the company was losing the equivalent of $1 million a day. In a global toy [music] market, 5:52:52 5 saat 52 dakika 52 saniye still worth more than $70 billion US at the time, Lego, once the king of the toy box, [music] was only a few steps away from bankruptcy. 5:53:02 5 saat 53 dakika 2 saniye Times were dark, but a spark of genius appeared. In 1999, LEGO signed its first 5:53:09 5 saat 53 dakika 9 saniye ever licensing deal with no other than Lucasfilm. 5:53:13 5 saat 53 dakika 13 saniye The timing was perfect. Star Wars Episode 1 was about to hit theaters. 5:53:20 5 saat 53 dakika 20 saniye Hype was global and the first Lego Star Wars sets were instant hits, not just with children, with adults. Collectors 5:53:29 5 saat 53 dakika 29 saniye lined up to buy the X-wing, the Snowspeeder, or the first Millennium Falcon. For the first time in LEGO's 5:53:36 5 saat 53 dakika 36 saniye history, adults, including those in their 30s and 40s, were buying sets for themselves. 5:53:43 5 saat 53 dakika 43 saniye The adult fan of Lego community is getting bigger. This is because Lego is not the same as it was 20 or 30 years ago. 5:53:52 5 saat 53 dakika 52 saniye Before, Lego was only seen as a toy to play with when it was cold and you were indoors. 5:53:59 5 saat 53 dakika 59 saniye Today, Lego is much more than a toy. 5:54:02 5 saat 54 dakika 2 saniye It's used to create logos to design dynamic group activities. And it also represents a shift in how we see it. 5:54:10 5 saat 54 dakika 10 saniye years ago, if you said you played with Lego or built Lego, you almost had to explain yourself that you were at home playing with little figures making up battles. What we do today is different. 5:54:21 5 saat 54 dakika 21 saniye We come together as a community of adults and LEGO has recognized that. 5:54:27 5 saat 54 dakika 27 saniye That's why more and more products are now designed specifically for adults, more complex to build, and also more expensive. 5:54:38 5 saat 54 dakika 38 saniye This kid demographic [music] would later become one of LEGO's most profitable segments. More licenses followed. 5:54:45 5 saat 54 dakika 45 saniye [music] Harry Potter, Spider-Man, Batman, Indiana Jones, and later the newest Marvel Cinematic Universe. 5:54:53 5 saat 54 dakika 53 saniye Even though LEGO learned that storytelling sells, in 2004, [music] losses were mounting and survival was uncertain. 5:55:02 5 saat 55 dakika 2 saniye And then [music] the company made a radical decision. 5:55:06 5 saat 55 dakika 6 saniye For the first time in its history, the company appointed a CEO from outside the Christensen family, Jurgen Victor, 5:55:14 5 saat 55 dakika 14 saniye a 35-year-old former McKenzie consultant. He was calm, precise, analytical, 5:55:22 5 saat 55 dakika 22 saniye and brutally honest. His diagnosis was simple. Lego had forgotten what made it Lego. 5:55:31 5 saat 55 dakika 31 saniye Kutto cut the number of unique elements by nearly 50%. He sold off the theme parks. He shut down unprofitable 5:55:39 5 saat 55 dakika 39 saniye production facilities. He centralized supply [music] chains, standardized materials, and brought back discipline 5:55:46 5 saat 55 dakika 46 saniye to the system. But more important, he put the brick back at the center of the company. 5:55:56 5 saat 55 dakika 56 saniye This turnaround didn't happen in isolation. The global toy industry was undergoing a seismic change. China was 5:56:05 5 saat 56 dakika 5 saniye producing nearly 75% of the world's toys, being the largest manufacturing consolidation in toy history. 5:56:13 5 saat 56 dakika 13 saniye Meanwhile, the United States had become the single largest consumer, responsible for nearly onethird of the global toy spending. 5:56:23 5 saat 56 dakika 23 saniye By 2005, the [music] toy market was worth close to $80 billion US. But it was brutally competitive as well. 5:56:32 5 saat 56 dakika 32 saniye Seasonality was extreme. Nearly half of the annual toy sales occurred in just 3 months from October to December. 5:56:41 5 saat 56 dakika 41 saniye Companies lived or died by Christmas. 5:56:45 5 saat 56 dakika 45 saniye Mattel was [music] battling declining Barbie sales. Hasbro was betting its future on Transformers and board [music] game reinventions. 5:56:52 5 saat 56 dakika 52 saniye Electronics were eating market share across every age group. In this scenario, LEGO rebuilt [music] 5:57:00 5 saat 57 dakika and refocused and then began rising above all of them. 5:57:07 5 saat 57 dakika 7 saniye [snorts] 5:57:11 5 saat 57 dakika 11 saniye Between 2008 and 2015, LEGO entered a new era, [music] a renaissance driven by 5:57:18 5 saat 57 dakika 18 saniye design, storytelling, digital engagement, and [music] adult passion. 5:57:24 5 saat 57 dakika 24 saniye The company launched the ultimate collector series, producing the largest, most detailed [music] models in toy history. 5:57:32 5 saat 57 dakika 32 saniye LEGO architecture brought landmarks to coffee tables. [music] Modular buildings turned living rooms into miniature cities, and adults were 5:57:40 5 saat 57 dakika 40 saniye no longer hiding their Lego hobby, but embracing it. My story with Lego began in the early '9s when I was a small child. 5:57:50 5 saat 57 dakika 50 saniye I started playing, but then I stopped for a while. 5:57:54 5 saat 57 dakika 54 saniye This is what most of us want to do when we are teenagers to do other hobbies and spend less time playing with Lego. 5:58:03 5 saat 58 dakika 3 saniye After that, when I was in my early 20s, I started collecting Lego. I met people from the Valencian community and founded Valrech. 5:58:13 5 saat 58 dakika 13 saniye That eventually led me to a television show where I took part and won. From there, companies began approaching me to develop projects. 5:58:24 5 saat 58 dakika 24 saniye At first, this hadn't even occurred to me, but I started to see a growing demand. 5:58:30 5 saat 58 dakika 30 saniye Whether it was building a corporate kit, like a transport company's truck, or even a company's logistics headquarters, 5:58:38 5 saat 58 dakika 38 saniye this market opened up a professional path for me. 5:58:42 5 saat 58 dakika 42 saniye It supports me financially, but more importantly, it's deeply rewarding. 5:58:47 5 saat 58 dakika 47 saniye Many of these projects challenge me to build things I would never choose on my own. But once a challenge is set, build this. 5:58:55 5 saat 58 dakika 55 saniye My mind immediately starts collecting ideas, figuring out how to shape them and bring the project to life in the best possible way. 5:59:10 5 saat 59 dakika 10 saniye [music] 5:59:12 5 saat 59 dakika 12 saniye events, engineering cups, a [music] global movement emerged. 5:59:17 5 saat 59 dakika 17 saniye By 2014, adults accounted for nearly 1/3 of [music] LEGO sales. 5:59:23 5 saat 59 dakika 23 saniye To anyone who thinks Lego is only for children, I'd say come and see the exhibition. 5:59:29 5 saat 59 dakika 29 saniye See what we're capable of creating with Lego pieces and how imagination develops in both children and adults. 5:59:38 5 saat 59 dakika 38 saniye Children work within certain limits and see things differently, but adults with a wider range of colors, shapes, and 5:59:45 5 saat 59 dakika 45 saniye ways to use the pieces can explore just how much is possible. 5:59:51 5 saat 59 dakika 51 saniye It was a radical shift in the economics [music] of play. And then came the cultural explosion. 5:59:58 5 saat 59 dakika 58 saniye In 2014, The Lego Movie shattered expectations, earning nearly $500 million US at the box office. 6:00:07 6 saat 7 saniye What started as a toy was now pop culture. By the mid 2010s, LEGO was the 6:00:15 6 saat 15 saniye world's most valuable toy company, [music] even surpassing Mattel, Hasbro, and every other competitor. 6:00:22 6 saat 22 saniye The brick that [music] started it all was no longer just a product. It was a global icon. [music] 6:00:33 6 saat 33 saniye The LEGO Group stands today as [music] one of the most efficient, profitable, and culturally influential toy companies on Earth. Its factories run with near perfect precision. 6:00:44 6 saat 44 saniye Its design teams develop thousands of prototypes each year. Its supply chain delivers billions of bricks that must 6:00:51 6 saat 51 saniye all fit together flawlessly across decades. 6:00:56 6 saat 56 saniye In a global toy market worth roughly $120 billion a year, Lego commands 6:01:02 6 saat 1 dakika 2 saniye nearly 9% of all worldwide toy sales. No other toy brand, not Barbie, not Marvel 6:01:10 6 saat 1 dakika 10 saniye figures, not Nintendo merchandise, maintains such consistency across continents, genders, and generations. 6:01:17 6 saat 1 dakika 17 saniye [music] 6:01:18 6 saat 1 dakika 18 saniye And unlike most toy companies that outsource manufacturing, LEGO controls a significant portion of its own 6:01:25 6 saat 1 dakika 25 saniye production with major hubs in Denmark, Hungary, Mexico, China, and the Czech Republic. 6:01:33 6 saat 1 dakika 33 saniye This vertical integration reduces risk, stabilizes [music] quality, and protects one of the most important values in the company's DNA, precision. 6:01:43 6 saat 1 dakika 43 saniye Every Lego brick must be manufactured with tolerances thinner than a strand of hair. If the clutch is too tight, the 6:01:51 6 saat 1 dakika 51 saniye model breaks. If it's too loose, towers collapse. Across billions of pieces, perfection is not an ambition. [music] It is an engineering reality for LEGO. 6:02:04 6 saat 2 dakika 4 saniye This level of detail gives the company one of the highest brand trust ratings in the world. Parents know the bricks will last. 6:02:13 6 saat 2 dakika 13 saniye Adults know the sets will impress. 6:02:15 6 saat 2 dakika 15 saniye Collectors know the investment will hold value. 6:02:19 6 saat 2 dakika 19 saniye The modern toy market is a machine of impulse, tradition, celebration, and nostalgia. 6:02:26 6 saat 2 dakika 26 saniye In 2025, global spending on toys approaches $120 billion, nearly double what it was two 6:02:34 6 saat 2 dakika 34 saniye decades earlier. The United States remains the world's largest consumer, accounting for roughly onethird of 6:02:41 6 saat 2 dakika 41 saniye global sales. A typical American household with children may spend $300 to $400 per [music] child per year on 6:02:49 6 saat 2 dakika 49 saniye toys. This is more than five times the global average. 6:02:55 6 saat 2 dakika 55 saniye Europe forms the second largest block with strong purchasing [music] power in Germany, the United Kingdom, and France. 6:03:02 6 saat 3 dakika 2 saniye Asia-Pacific [music] is rapidly growing, especially in China, South Korea, and Japan, driven by rising middle classes and urban lifestyles. 6:03:13 6 saat 3 dakika 13 saniye But the most important shift of the last [music] decade is not geographic, it is demographic. 6:03:20 6 saat 3 dakika 20 saniye [laughter] 6:03:26 6 saat 3 dakika 26 saniye adults. Once considered [music] irrelevant to the toy industry and now one of the most powerful forces, this 6:03:33 6 saat 3 dakika 33 saniye growing segment, commonly called the kid market, now represents between 25 and 30% of all toy purchases worldwide. 6:03:43 6 saat 3 dakika 43 saniye Adults buy toys for nostalgia, for stress [music] relief, for display, for identity. Lego is the undisputed 6:03:52 6 saat 3 dakika 52 saniye champion of this movement. Unlike other hobbies, Lego gives me a sense of calm. 6:04:00 6 saat 4 dakika It lets me take ideas from my mind, bring them to life, think them through, and simply enjoy the process. Right now, 6:04:08 6 saat 4 dakika 8 saniye I'm trying to instill that in my son to enjoy himself to learn to see colors and shapes and to understand that with imagination, anything is possible. 6:04:19 6 saat 4 dakika 19 saniye Its premium sets, Technic Hypercars, Star Wars Ultimate Collector Series, iconic landmarks, regularly exceed 6:04:28 6 saat 4 dakika 28 saniye prices of $30,500, even $800. 6:04:32 6 saat 4 dakika 32 saniye They sell out within hours. They hold aftermarket values like fine collectibles. This adult segment has 6:04:40 6 saat 4 dakika 40 saniye reshaped the entire financial landscape of the company. It provides stability when children's trends shift. It creates 6:04:48 6 saat 4 dakika 48 saniye recurring revenue from loyal fans and it strengthens LEGO's position as a crossgenerational brand, something few 6:04:56 6 saat 4 dakika 56 saniye toy companies have [music] ever achieved. 6:04:59 6 saat 4 dakika 59 saniye Seasonality still dictates much of the global toy market. Every year, nearly half of all toy sales occur between 6:05:07 6 saat 5 dakika 7 saniye October and December. Companies live or die by holiday forecasting, inventory strategy, and shipment timing. But LEGO 6:05:16 6 saat 5 dakika 16 saniye has become the exception. Adult collectors buy year round. Digital experiences drive sales outside the 6:05:24 6 saat 5 dakika 24 saniye holiday season. Licensed launches create anticipation even in slow quarters. 6:05:31 6 saat 5 dakika 31 saniye LEGO has effectively freed itself or at least partially from the seasonal dependency that has defined the toy 6:05:37 6 saat 5 dakika 37 saniye industry for over a century. The brick is physical, tangible, mechanical. But 6:05:45 6 saat 5 dakika 45 saniye Lego's success in the 21st century extends into digital worlds. Star Wars, 6:05:51 6 saat 5 dakika 51 saniye Batman, Marvel. These games defined an entire generation of familyfriendly titles. They sold tens of millions of 6:06:00 6 saat 6 dakika copies. They introduced humor, storytelling, and simplicity to a medium often dominated by complexity. 6:06:08 6 saat 6 dakika 8 saniye For many children born after the year 2000, Lego was not discovered in a [music] toy box, but on a screen. The 6:06:16 6 saat 6 dakika 16 saniye cinematic leap came in 2014 when the Lego movie premiered to global acclaim. It turned nearly half a billion dollars. 6:06:25 6 saat 6 dakika 25 saniye Most importantly, it reframed Lego as a cultural idea, not a product. The film taught a global audience that creativity 6:06:34 6 saat 6 dakika 34 saniye matters, that imperfection is beautiful, that building and rebuilding are not failures, they are the process of play. 6:06:43 6 saat 6 dakika 43 saniye Lego Batman expanded the concept. Lego Ninjago created an entirely new generation of fans and Lego Masters on 6:06:52 6 saat 6 dakika 52 saniye television turned building into a competitive art form. 6:06:56 6 saat 6 dakika 56 saniye The brand had moved beyond toys, beyond stories, beyond bricks. It had become part of the cultural grammar of the 21st century. 6:07:11 6 saat 7 dakika 11 saniye Long before STEM became a global movement, Lego was already teaching children how to think like engineers. In 6:07:19 6 saat 7 dakika 19 saniye the 1990s, Lego Mindstorms introduced programmable robotics to students around the [music] world. Later sets, we do 6:07:28 6 saat 7 dakika 28 saniye Spike Prime Boost brought coding, sensors, and motors into classrooms and homes. Today, [music] LEGO Education 6:07:37 6 saat 7 dakika 37 saniye works with governments, schools, and universities to bring hands-on learning to millions of students. [music] 6:07:43 6 saat 7 dakika 43 saniye The philosophy is simple. Children learn best through play. This approach shapes future engineers, designers, and problem 6:07:52 6 saat 7 dakika 52 saniye solvers. [music] It helps children experiment in ways that textbooks cannot. And it continues Olirk's belief that play is [music] not 6:08:01 6 saat 8 dakika 1 saniye a distraction from learning, but the foundation of it. 6:08:06 6 saat 8 dakika 6 saniye In a world increasingly focused on [music] sustainability, from my experience, what makes Lego different from other construction toys is its growing commitment to inclusion. 6:08:15 6 saat 8 dakika 15 saniye In recent years, LEGO has actively embraced people with different abilities. For example, by including figures in wheelchairs and releasing 6:08:23 6 saat 8 dakika 23 saniye sets in Braille. These are things most other brands simply don't offer, but LEGO does. 6:08:30 6 saat 8 dakika 30 saniye In addition, LEGO is strongly committed to the environment. 6:08:34 6 saat 8 dakika 34 saniye They're producing more and more pieces using recycled plastic and replacing plastic packaging with paper to reduce waste, something other brands simply don't do. 6:08:45 6 saat 8 dakika 45 saniye Lego faces a unique challenge. Its bricks are made to last forever. A blessing for creativity, but a concern 6:08:53 6 saat 8 dakika 53 saniye in an era of plastic waste. In response, LEGO has [music] invested hundreds of millions of dollars into developing more sustainable materials. 6:09:03 6 saat 9 dakika 3 saniye Plant-based polyethylene [music] is already used for leaves and trees. 6:09:08 6 saat 9 dakika 8 saniye Recycled PT [music] prototypes continue to advance. 6:09:12 6 saat 9 dakika 12 saniye Recycled PET prototypes continue to advance. New polymer engineering aims to create bricks as durable [music] as ABS without the environmental cost. 6:09:24 6 saat 9 dakika 24 saniye This transition is not simple. A Lego brick must interlock with [music] perfect precision. A fraction of a 6:09:32 6 saat 9 dakika 32 saniye millimeter can make the difference between wonder and frustration. [music] But the mission is clear. A toy that 6:09:39 6 saat 9 dakika 39 saniye lasts forever should also protect the world it is played in. Play is not a luxury. Play is exploration. [music] Play is curiosity. 6:09:50 6 saat 9 dakika 50 saniye Play is the earliest form of human creativity. [music] From wooden ducks in a small Danish workshop to interlocking bricks that 6:09:59 6 saat 9 dakika 59 saniye span generations to movies, video games, robotics, and global fan communities. LEGO has 6:10:07 6 saat 10 dakika 7 saniye remained [music] loyal to a simple truth. When we build, we grow. When we imagine, we expand. When we play, we become more human. 6:10:24 6 saat 10 dakika 24 saniye More than a century ago, a carpenter rebuilt his workshop after a fire. He rebuilt it again after another. 6:10:32 6 saat 10 dakika 32 saniye Not because it was easy, but because he believed in the power of making things and in the power of play. Today, 6:10:41 6 saat 10 dakika 41 saniye billions of creations have risen from that belief. Cities, castles, spaceships, 6:10:49 6 saat 10 dakika 49 saniye dreams that exist nowhere else but in the minds of the people who build them. 6:10:54 6 saat 10 dakika 54 saniye Lego is not perfect. It has faced crises, challenges, [screaming] and impossible decisions. But it endures 6:11:03 6 saat 11 dakika 3 saniye through war, through technological revolutions, through economic storms. Because imagination always endures. 6:11:12 6 saat 11 dakika 12 saniye And as long as there are hands reaching for bricks, as long as there are minds [music] ready to create, the legacy of Ole Kirk Christensen will continue. 6:11:23 6 saat 11 dakika 23 saniye Every dream starts with a single piece. 6:12:55 6 saat 12 dakika 55 saniye Jensen Hang the Software Moat. June 18th, 2024. 6:13:02 6 saat 13 dakika 2 saniye For a brief historic moment, the world had a new king. 6:13:08 6 saat 13 dakika 8 saniye Jensen Huang, the [music] co-founder and CEO of Nvidia, stood at the peak of a $3.4 trillion mountain. 6:13:18 6 saat 13 dakika 18 saniye Analysts whispered that he wasn't just leading a company. He was leading the first entity destined for a $4 trillion valuation. 6:13:30 6 saat 13 dakika 30 saniye But to understand the man in the leather jacket, you cannot look at the triumph. 6:13:35 6 saat 13 dakika 35 saniye You must look at the fear. Behind the 250% revenue jumps and the soldout age 6:13:43 6 saat 13 dakika 43 saniye 100 backlogs lies a leader obsessed with the cyclical trap. 6:13:49 6 saat 13 dakika 49 saniye In the 60-year history of semiconductors, giants like Texas Instruments, Intel, 6:13:55 6 saat 13 dakika 55 saniye and Samsung have all held the crown only to see it slip away. 6:14:02 6 saat 14 dakika 2 saniye Jensen's mission is simple. Break the cycle before it breaks him. [music] Flashback to September 1996. 6:14:13 6 saat 14 dakika 13 saniye The golden [music] era of the internet is dawning for everyone else but for Nvidia. It is a [music] death nail. 6:14:22 6 saat 14 dakika 22 saniye Their first chip, the NV1, is a technical ghost rejected by Microsoft's DirectX. [music] 6:14:31 6 saat 14 dakika 31 saniye Jensen stands before a dwindling team and delivers the most famous mantra in Silicon Valley history. 6:14:39 6 saat 14 dakika 39 saniye We have exactly 30 days of oxygen left. We are 30 days from bankruptcy. 6:14:46 6 saat 14 dakika 46 saniye How does a man go from cleaning toilets in a Kentucky reform school to controlling the foundational layer of the global AI economy? 6:14:56 6 saat 14 dakika 56 saniye From a red leather booth at a Denny's to a legal showdown in the US Supreme Court over the very intellectual honesty of his empire. 6:15:06 6 saat 15 dakika 6 saniye This is not just a story of silicon and software. 6:15:11 6 saat 15 dakika 11 saniye This is the chronicle of the man who decided to manufacture intelligence itself. 6:15:17 6 saat 15 dakika 17 saniye This is Jensen Hang, [music] the architect of the digital brain. 6:15:24 6 saat 15 dakika 24 saniye Chapter one. Forged in the chaos, Nvidia was not born from abundance. Its 6:15:32 6 saat 15 dakika 32 saniye DNA was forged in the raw fires of survival. 6:15:37 6 saat 15 dakika 37 saniye Jen's son Huang arrived in the United States [music] as a young migrant, but his destination wasn't an elite prep 6:15:45 6 saat 15 dakika 45 saniye school. Due to a clerical misunderstanding by his parents, he was sent to Onida Baptist Institute in rural 6:15:53 6 saat 15 dakika 53 saniye Kentucky, a place that at the time functioned more as a reform school for troubled youths than a traditional academy. 6:16:02 6 saat 16 dakika 2 saniye At 9 years old, the future CEO of one of the world's most valuable companies wasn't coding. He was cleaning the 6:16:10 6 saat 16 dakika 10 saniye toilets of 150 teenagers every single afternoon. 6:16:16 6 saat 16 dakika 16 saniye In his personal transcripts, Jensen reflects on this with a chilling stoicism. I didn't complain. I just learned to work hard. 6:16:26 6 saat 16 dakika 26 saniye Bad boy learned the first law of accelerated computing decades before it existed. For a system to be efficient, 6:16:34 6 saat 16 dakika 34 saniye it must be able to process chaos under [music] extreme pressure. 6:16:40 6 saat 16 dakika 40 saniye By 15, Jensen was the most efficient dishwasher and waiter at a Denny's in Portland. I was incredibly shy, he 6:16:48 6 saat 16 dakika 48 saniye admits. But the chaos of the kitchen forced me out of my shell. 6:16:54 6 saat 16 dakika 54 saniye It is no coincidence that Nvidia was founded in 1993 inside a booth at that very same restaurant chain. 6:17:02 6 saat 17 dakika 2 saniye While the world saw the dawn of the PC as an office tool for spreadsheets, [music] Jensen, Chris Mahovsky, and Curtis Pim saw a fatal weakness. 6:17:15 6 saat 17 dakika 15 saniye In 1993, Intel's generalpurpose CPU was hitting a physical wall. If the future 6:17:22 6 saat 17 dakika 22 saniye of computing was visual and immersive, the traditional serial architecture would become the bottleneck of human progress. 6:17:31 6 saat 17 dakika 31 saniye With only $40,000 in startup capital, they founded Nvidia to chase a ghost, accelerated computing, 6:17:40 6 saat 17 dakika 40 saniye they bet on a market the rest of the industry dismissed as a niche for toys, video games. 6:17:47 6 saat 17 dakika 47 saniye Before Jensen, video games were the ultimate technological flywheel. 6:17:52 6 saat 17 dakika 52 saniye He knew that if you could master the massive realtime rendering of pixels, you could eventually simulate reality itself. 6:18:02 6 saat 18 dakika 2 saniye But before they could reach that glory, they had to survive their first massive technical abyss, the NV1. 6:18:18 6 saat 18 dakika 18 saniye By 1995, Nvidia's first massive bet, [music] the NV1 chip, was ready to 6:18:25 6 saat 18 dakika 25 saniye conquer the market. But Jensen Hang had made a catastrophic technical gamble. 6:18:31 6 saat 18 dakika 31 saniye At a time when the industry was undecided, he bet on quadratic texture mapping, a method that used curved surfaces to create 3D images. 6:18:42 6 saat 18 dakika 42 saniye It was mathematically intelligent, but it was a lonely path. The industry hammer dropped when Microsoft released 6:18:50 6 saat 18 dakika 50 saniye its first DirectX [music] API. Microsoft chose triangles, not quads, as the universal language for PC gaming. 6:18:59 6 saat 18 dakika 59 saniye This decision rendered Nvidia's technology instantly obsolete. 6:19:04 6 saat 19 dakika 4 saniye The NV1 wasn't just a failure, it was a dead end. The company was bleeding cash. 6:19:11 6 saat 19 dakika 11 saniye And as Jensen famously put it, they were staring at exactly 30 days of oxygen. 6:19:20 6 saat 19 dakika 20 saniye Nvidia's only lifeline was a strategic contract with the Japanese giant Sega to build the graphics engine for the Sega 6:19:27 6 saat 19 dakika 27 saniye Saturn. But Jensen was trapped in a moral and business dilemma. 6:19:32 6 saat 19 dakika 32 saniye He knew that if they continued building the chip for Sega using Nvidia's flawed quad technology, Sega would lose the console war to 6:19:41 6 saat 19 dakika 41 saniye Sony's PlayStation and Nvidia would eventually perish anyway. In an act of intellectual honesty, or as many at the 6:19:50 6 saat 19 dakika 50 saniye time called corporate suicide, Jensen flew to Japan. He sat across from Shy 6:19:56 6 saat 19 dakika 56 saniye Chiro Inimiri, the CEO of Sega, and told him the brutal truth. Our technology is 6:20:03 6 saat 20 dakika 3 saniye on the wrong path. If we finish this project, you will produce an inferior product. 6:20:11 6 saat 20 dakika 11 saniye Jensen asked for the impossible. He asked Sega to terminate the contract, but to pay the remaining $5 million 6:20:18 6 saat 20 dakika 18 saniye anyway. If you don't pay us, Jensen pleaded. Nvidia will cease to exist tomorrow. 6:20:26 6 saat 20 dakika 26 saniye To the astonishment of the tech world, Idlimiri son agreed. He didn't pay for a working chip. He paid for Jensen's integrity. 6:20:37 6 saat 20 dakika 37 saniye That $5 million was the most expensive oxygen in history. 6:20:42 6 saat 20 dakika 42 saniye To make it last, Jensen had to fire half of his workforce. These weren't just employees. They were friends who had 6:20:49 6 saat 20 dakika 49 saniye shared the Denny's dream. This trauma institutionalized a permanent state of emergency at Nvidia. 6:20:57 6 saat 20 dakika 57 saniye With the remaining team, Jensen funneled every scent [music] into the Reva 128. 6:21:04 6 saat 21 dakika 4 saniye They abandoned quads and embraced Microsoft's triangles with a vengeance. 6:21:09 6 saat 21 dakika 9 saniye When it launched in 1997, the Revo 128 was 400% faster than anything else on the market. 6:21:18 6 saat 21 dakika 18 saniye It was a dive catch of epic proportions. 6:21:21 6 saat 21 dakika 21 saniye Nvidia was no longer just a [music] survivor. It had become a hunter. 6:21:27 6 saat 21 dakika 27 saniye But as Jensen looked at the horizon, he saw 70 rivals waiting to kill him. The war was only beginning. 6:21:43 6 saat 21 dakika 43 saniye The success of the Reval 128 was a dive catch, but it placed Nvidia in the middle of a slaughter house. By 1997, 6:21:53 6 saat 21 dakika 53 saniye there were over 70 companies fighting for the soul of the 3D graphics market. 6:21:58 6 saat 21 dakika 58 saniye It was a commodity war where price cutting was the only weapon for most. 6:22:04 6 saat 22 dakika 4 saniye Jensen Hang realized that if Nvidia played by the industry's rules, they would eventually be ground into dust. 6:22:12 6 saat 22 dakika 12 saniye He decided to break the laws of time. 6:22:15 6 saat 22 dakika 15 saniye The industry standard for developing a new chip was 18 to 24 months. Following the steady beat of Moore's law, Jensen 6:22:24 6 saat 22 dakika 24 saniye gathered his engineers and imposed a suicidal mandate. Nvidia would release a brand new groundbreaking architecture every 6 months. 6:22:35 6 saat 22 dakika 35 saniye It was a strategy of relentless execution. 6:22:39 6 saat 22 dakika 39 saniye By the time a competitor like 3dfx or S3 could react to one Nvidia chip, Jensen 6:22:46 6 saat 22 dakika 46 saniye had already launched two more. This forced the competition into a permanent state of obsolescence. 6:22:53 6 saat 22 dakika 53 saniye To achieve this, Nvidia had to reinvent its internal engineering, running multiple design teams in parallel, a 6:23:01 6 saat 23 dakika 1 saniye massive financial risk that pushed the company to the edge of its operational capacity. In 1999, the war reached its 6:23:09 6 saat 23 dakika 9 saniye climax. Nvidia released the GeForce 256. 6:23:16 6 saat 23 dakika 16 saniye Jensen didn't [music] just market it as a faster card. He coined a term that would redefine computing history, the 6:23:23 6 saat 23 dakika 23 saniye GPU, graphics processing unit. This wasn't just branding. [music] Technically, the GeForce 256 6:23:32 6 saat 23 dakika 32 saniye moved the transform and lighting calculations, the most heavy mathematical lifting of 3D off the CPU 6:23:39 6 saat 23 dakika 39 saniye and onto the chip itself. It was the birth of a new era. 6:23:45 6 saat 23 dakika 45 saniye This performance leap was so massive that Nvidia secured the prestigious contract for the original Microsoft 6:23:51 6 saat 23 dakika 51 saniye Xbox, receiving a crucial $200 million advance. 6:23:58 6 saat 23 dakika 58 saniye The 6-month cycle worked. By the early 2000s, [music] the 70 competitors had been reduced to just two, Nvidia and ATI. 6:24:08 6 saat 24 dakika 8 saniye In a final act of dominance, Nvidia acquired the assets of its former idol and arch rival 3dfx in 2000. 6:24:17 6 saat 24 dakika 17 saniye Jensen had cleared the board. He was the undisputed king of gaming. But at the 6:24:24 6 saat 24 dakika 24 saniye very moment of his greatest triumph, he began to look at the higherformance computing market. He realized that the 6:24:31 6 saat 24 dakika 31 saniye GPU's massive parallel math could do more than just draw pixels. It could solve the world's most complex problems. 6:24:40 6 saat 24 dakika 40 saniye The seeds of CUDA and the $10 billion gamble were being planted. 6:24:53 6 saat 24 dakika 53 saniye By 2006, Nvidia was the undisputed king of the gaming world. But Jensen Huang was restless. He realized that the 6:25:02 6 saat 25 dakika 2 saniye [music] same parallel processing power that rendered pixels for World of Warcraft could be used to solve the [music] world's most complex mathematical problems. 6:25:11 6 saat 25 dakika 11 saniye He launched [music] CUDA, compute unified device architecture. It was a declaration [music] of war against the CPUcentric world. 6:25:21 6 saat 25 dakika 21 saniye The goal was simple yet insane. 6:25:24 6 saat 25 dakika 24 saniye Transform [music] every NVIDIA GPU into a generalpurpose supercomput. 6:25:30 6 saat 25 dakika 30 saniye But this decision [music] came with a staggering cost. Jensen mandated that every single GPU Nvidia manufactured 6:25:38 6 saat 25 dakika 38 saniye from the high-end workstation cards to the cheapest laptop [music] chips must include the extra transistors and hardware logic to support CUDA. 6:25:48 6 saat 25 dakika 48 saniye Wall Street was [music] horrified. 6:25:51 6 saat 25 dakika 51 saniye For nearly a decade, Nvidia [music] spent billions, estimated at over 10 billion dollars in cumulative R&D on a 6:26:00 6 saat 26 dakika software platform that almost no one was [music] using. Profit margins, which once sat comfortably high, were sacrificed at the altar of this vision. 6:26:10 6 saat 26 dakika 10 saniye Analysts mocked the [music] strategy, calling it the bridge to nowhere. During the 2008 financial crisis, Nvidia's 6:26:19 6 saat 26 dakika 19 saniye market cap plummeted [music] and the company was once again staring into the abyss. 6:26:26 6 saat 26 dakika 26 saniye But Jensen wasn't just building hardware. He was building [music] a software moat. He sent Nvidia engineers 6:26:33 6 saat 26 dakika 33 saniye to universities around the world, helping [music] professors teach parallel programming using CUDA. 6:26:40 6 saat 26 dakika 40 saniye He was seeding the ground. While competitors like [music] Intel and AMD focused on making faster chips, Jensen was building [music] an entire language. 6:26:51 6 saat 26 dakika 51 saniye By the time a developer learned CUDA, they were locked in. Switching to a competitor wouldn't just mean buying a 6:26:58 6 saat 26 dakika 58 saniye new chip. It would mean rewriting millions of lines of code. 6:27:03 6 saat 27 dakika 3 saniye Year after year, Jensen defended CUDA in boardrooms and earning calls. He practiced what he calls long-term 6:27:11 6 saat 27 dakika 11 saniye commitment to [music] a vision, even when the data didn't yet support it. He was waiting for a killer app for accelerated computing. 6:27:20 6 saat 27 dakika 20 saniye He didn't know what it would be. But he knew that as data grew [music] exponentially, the serial processing of the CPU would eventually fail. 6:27:30 6 saat 27 dakika 30 saniye The silence of the Cuda winter was about to be broken. 6:27:34 6 saat 27 dakika 34 saniye In a lab at the University of Toronto, 6:27:36 6 saat 27 dakika 36 saniye [music] 6:27:37 6 saat 27 dakika 37 saniye a PhD student named Alex Kreski was about to feed a neural network called Alexet into those Nvidia GPUs. 6:27:46 6 saat 27 dakika 46 saniye The big bang of artificial intelligence was seconds away, and Jensen Huang was the only person on Earth who had already built the engine to [music] power it. 6:28:03 6 saat 28 dakika 3 saniye The year was 2012. While the world saw just another academic competition, Jensen Hang saw the spark that would ignite a global revolution. 6:28:14 6 saat 28 dakika 14 saniye A neural network called AlexNet, powered by NVIDIA GPUs, crushed the competition 6:28:21 6 saat 28 dakika 21 saniye in image recognition. It was the big bang of deep learning. 6:28:27 6 saat 28 dakika 27 saniye Jinsen didn't just [music] celebrate, he pivoted the entire company. He realized that the $10 billion gamble on CUDA had 6:28:35 6 saat 28 dakika 35 saniye finally found [music] its soul, artificial intelligence. 6:28:40 6 saat 28 dakika 40 saniye This pivot transformed [music] Nvidia from a graphics card company into the foundational engine of the world's most powerful data centers. 6:28:50 6 saat 28 dakika 50 saniye Jensen's vision was no longer about drawing pixels. [music] It was about generative AI. 6:28:56 6 saat 28 dakika 56 saniye By the time Chat [music] GPT launched in late 2022, Nvidia didn't just have a head start. 6:29:02 6 saat 29 dakika 2 saniye [music] 6:29:03 6 saat 29 dakika 3 saniye They were the only ones at the starting line. 6:29:08 6 saat 29 dakika 8 saniye Jensen [music] acted with a speed that terrified his competitors. He didn't just wait for orders. He re-engineered Nvidia's entire road map. 6:29:17 6 saat 29 dakika 17 saniye In 2016, he personally delivered the first [music] Nvidia DGX1, the world's first AI supercomput in a 6:29:26 6 saat 29 dakika 26 saniye box to a then small nonprofit called Open AAI. He was very [music] clear, this will change the world. 6:29:37 6 saat 29 dakika 37 saniye Technically, this period was about specialization. [music] Nvidia began adding tensor cores to its chips. These weren't for graphics. 6:29:45 6 saat 29 dakika 45 saniye [music] 6:29:45 6 saat 29 dakika 45 saniye They were designed specifically for the deep learning math that powers neural networks. [music] Nvidia was no longer just making a 6:29:53 6 saat 29 dakika 53 saniye faster graphics card. It was building a specialized brain. 6:29:58 6 saat 29 dakika 58 saniye By 2017, the momentum [music] was unstoppable. 6:30:02 6 saat 30 dakika 2 saniye Every major tech giant was building AI labs and they all had one thing in common. [music] They were built on Nvidia's stack. 6:30:10 6 saat 30 dakika 10 saniye This was the era when the software mode became a fortress. Thousands of researchers were now writing their doctoral thesis on [music] CUDA. 6:30:20 6 saat 30 dakika 20 saniye If a competitor wanted to challenge Nvidia, they wouldn't just need [music] a better chip. They would have to convince the world's brightest minds to 6:30:28 6 saat 30 dakika 28 saniye forget everything [music] they had learned. 6:30:32 6 saat 30 dakika 32 saniye But as the AI revolution took hold, an unexpected shadow emerged. A new craze called Bitcoin and Ethereum began to consume [music] Nvidia's supply. 6:30:43 6 saat 30 dakika 43 saniye To the world, Nvidia looked invincible, [music] but internally Jensen was wary. 6:30:49 6 saat 30 dakika 49 saniye Jensen knew that every bubble eventually bursts. 6:30:53 6 saat 30 dakika 53 saniye This period of explosive accidental growth from crypto miners was creating a shadow over the company's true mission, 6:31:01 6 saat 31 dakika 1 saniye setting the stage [music] for a highstakes legal battle over corporate transparency and a financial storm that would test the very foundations of his leadership. 6:31:15 6 saat 31 dakika 15 saniye In 2018, Nvidia was [music] riding a wave that looked like a miracle, but felt like a mirage. The explosion of 6:31:24 6 saat 31 dakika 24 saniye cryptocurrency mining had created an insatiable hunger for GeForce cards. 6:31:29 6 saat 31 dakika 29 saniye To the outside world, Nvidia's revenue was reaching historic heights. However, [music] beneath the surface, a dangerous 6:31:37 6 saat 31 dakika 37 saniye ambiguity was growing. Jensen Huang insisted that the growth was driven by a gaming renaissance, but the reality was 6:31:45 6 saat 31 dakika 45 saniye more volatile. The mirage evaporated 6:31:48 6 saat 31 dakika 48 saniye [music] 6:31:48 6 saat 31 dakika 48 saniye in late 2018. 6:31:51 6 saat 31 dakika 51 saniye The crypto winter arrived and the [music] demand for mining chips vanished overnight. 6:31:57 6 saat 31 dakika 57 saniye Nvidia was left with a massive surplus [music] of inventory and the market's reaction was brutal. The company's stock price [music] plummeted by 28% in a single day. 6:32:08 6 saat 32 dakika 8 saniye The invincible architect of AI was suddenly facing a crisis of credibility. 6:32:15 6 saat 32 dakika 15 saniye This financial collapse ignited a highstakes legal battle that would eventually reach the steps of the US Supreme Court. 6:32:22 6 saat 32 dakika 22 saniye A group of institutional investors filed a class action lawsuit alleging that Jensen [music] Hang had deliberately misled the market. The core of the case 6:32:31 6 saat 32 dakika 31 saniye rested on a single devastating word, 6:32:34 6 saat 32 dakika 34 saniye [music] 6:32:35 6 saat 32 dakika 35 saniye ci intent to deceive. The accusation [music] was sharp. 6:32:41 6 saat 32 dakika 41 saniye Investors claimed that internal Nvidia reports clearly showed over a billion dollars in revenue attributed to [music] gamers was actually coming from crypto miners. 6:32:51 6 saat 32 dakika 51 saniye Jensen fought back, defending his intellectual honesty and arguing that the expert opinions used against him were nothing [music] more than speculation. 6:33:00 6 saat 33 dakika This battle known as petition number 23-970 [music] became a landmark moment for Silicon Valley, questioning how much a 6:33:09 6 saat 33 dakika 9 saniye CEO must disclose when their technology accidentally conquers a market they didn't intend to lead. 6:33:17 6 saat 33 dakika 17 saniye While lawyers argued in Washington, Jensen was already looking past the wreckage. He didn't let the legal storm or the inventory crisis [music] slowed 6:33:26 6 saat 33 dakika 26 saniye down his ultimate plan. He doubled down on the data center, acquiring Melanox for $7 billion to control the highways 6:33:34 6 saat 33 dakika 34 saniye between his chips. [music] He was preparing for a world where AI wouldn't just be a research project, but the operating system of [music] the entire planet. 6:33:44 6 saat 33 dakika 44 saniye The storm of 2018 had been a warning. 6:33:47 6 saat 33 dakika 47 saniye [music] The era of generative AI was about to provide the answer. 6:33:57 6 saat 33 dakika 57 saniye By 2022, the world had changed. The launch of Chad GPT signaled the arrival of the 6:34:04 6 saat 34 dakika 4 saniye generative AI [music] era, and Nvidia was the only company prepared to power it. 6:34:10 6 saat 34 dakika 10 saniye But as Jensen Huang [music] stood on the brink of total market dominance, a new wall was built, not by a competitor, but 6:34:18 6 saat 34 dakika 18 saniye by the US government. Washington imposed [music] strict export controls on high-end AI chips. For Nvidia, the stakes were astronomical. 6:34:29 6 saat 34 dakika 29 saniye According to the geographical revenue data, China accounted for approximately [music] 20% to 25% of the company's total business. 6:34:39 6 saat 34 dakika 39 saniye Overnight, [music] Jensen had to navigate a geopolitical minefield, redesigning chips specifically to comply with regulations while trying to keep 6:34:48 6 saat 34 dakika 48 saniye his most important market from slipping away. 6:34:52 6 saat 34 dakika 52 saniye Jensen's answer to the geopolitical and technical pressure was the Blackwall architecture. If the H100 was a spark, 6:35:00 6 saat 35 dakika Blackwell was a sun. Packing an incredible 208 billion transistors, it delivered up to 30 times the performance of its predecessor for certain AI tasks. 6:35:12 6 saat 35 dakika 12 saniye But Blackwell represented a deeper strategic shift. Nvidia was no longer just a chipmaker. 6:35:20 6 saat 35 dakika 20 saniye Jensen was now building entire AI factories. [music] By integrating Melanox's networking technology, he controlled the highways 6:35:29 6 saat 35 dakika 29 saniye that allowed thousands of chips to talk to each other as if they were a single giant brain. 6:35:36 6 saat 35 dakika 36 saniye This system on a cluster approach meant that even if a competitor produced a faster individual chip, they couldn't compete with the sheer efficiency of the Nvidia ecosystem. 6:35:47 6 saat 35 dakika 47 saniye The financial results were staggering. 6:35:50 6 saat 35 dakika 50 saniye By early 2024, Nvidia's data center revenue had surged to over 47 billion, a 6:35:57 6 saat 35 dakika 57 saniye 217% increase in [music] a single year. The company was operating with 78.4% 6:36:04 6 saat 36 dakika 4 saniye gross [music] margins, profit levels usually reserved for software giants, not hardware manufacturers. 6:36:12 6 saat 36 dakika 12 saniye On June 18th, 2024, Nvidia became the most valuable company on the planet. 6:36:19 6 saat 36 dakika 19 saniye Yet, even as he stood at the summit, Jensen refused to relax. He looked the 60-year history of semiconductors, the 6:36:28 6 saat 36 dakika 28 saniye rise and fall of Intel, the cycles of Samsung and TI, and he knew that being on top was the most dangerous place to 6:36:35 6 saat 36 dakika 35 saniye be. His next challenge wouldn't just be about chips. It would be about giving AI a physical body. 6:36:50 6 saat 36 dakika 50 saniye In 2024, Jensen Huang had already conquered the digital world, but his eyes were fixed on a new frontier, the 6:36:57 6 saat 36 dakika 57 saniye physical one. He declared that the next wave of AI would be physical AI. 6:37:03 6 saat 37 dakika 3 saniye Intelligence that doesn't just process text or images, but understands the laws of physics. 6:37:09 6 saat 37 dakika 9 saniye Everything that moves from autonomous cars to humanoid robots would eventually be powered by an Nvidia brain. 6:37:18 6 saat 37 dakika 18 saniye This identifies it as the third pillar of Nvidia's future. To win this race, 6:37:23 6 saat 37 dakika 23 saniye [music] 6:37:24 6 saat 37 dakika 24 saniye Jensen isn't just building chips. He is building the omniverse. 6:37:29 6 saat 37 dakika 29 saniye This is a digital world where robots are trained millions of times in a virtual [music] simulation before they ever step into a real factory. 6:37:38 6 saat 37 dakika 38 saniye By the time a robot starts its job, it has already [music] lived a thousand lifetimes of experience. Jensen's strategy is a total vertical 6:37:47 6 saat 37 dakika 47 saniye integration. He is transforming Nvidia into a provider of AI factories. [music] He believes that in the future, every 6:37:55 6 saat 37 dakika 55 saniye company will have two factories, one that produces physical goods and a digital one that produces intelligence. 6:38:03 6 saat 38 dakika 3 saniye With the Melanox networking, high-speed highways, [music] and the CUDA software fortress, Jensen has ensured that the entire infrastructure of this new 6:38:12 6 saat 38 dakika 12 saniye industrial revolution [music] runs on Nvidia. When asked about his legacy, Jensen doesn't talk about stock prices 6:38:20 6 saat 38 dakika 20 saniye or trillions of dollars. He talks about material sciences [music] and scientific discovery. 6:38:27 6 saat 38 dakika 27 saniye He believes AI will give humans superpowers, helping us [music] solve climate change, cure diseases, and 6:38:34 6 saat 38 dakika 34 saniye handle the dangerous and mundane tasks so we can focus on what truly [music] makes us human, curiosity. 6:38:45 6 saat 38 dakika 45 saniye By 2025, the world had entered a state of compute geopolitics. 6:38:51 6 saat 38 dakika 51 saniye Nvidia was no longer just a company. It had become a strategic resource similar to oil or grain. The launch of the Blackwell B200 hadn't just met demand. 6:39:04 6 saat 39 dakika 4 saniye It had ignited a global scramble. 6:39:06 6 saat 39 dakika 6 saniye Nations like Japan, France, and the UAE began building sovereign AI clouds. 6:39:13 6 saat 39 dakika 13 saniye Realizing that depending on a few Silicon Valley giants for intelligence was a national security risk. 6:39:20 6 saat 39 dakika 20 saniye But as 2025 progressed, a new whisper began to haunt the industry. The wall. 6:39:27 6 saat 39 dakika 27 saniye For years, AI progress relied on scaling laws. The idea that more data and more GPUs would inevitably lead to more 6:39:35 6 saat 39 dakika 35 saniye intelligence. However, in 2026, the returns are starting to diminish. Data centers are becoming so massive, they 6:39:44 6 saat 39 dakika 44 saniye require their own dedicated nuclear power plants. and the lowhanging fruit of internet data has [music] been exhausted. 6:39:52 6 saat 39 dakika 52 saniye Jensen's response to the wall is typically defiant. He pivoted the industry towards synthetic data and 6:39:59 6 saat 39 dakika 59 saniye reasoning models. In 2026, Nvidia's focus has shifted from simply training 6:40:06 6 saat 40 dakika 6 saniye AI to inference at scale. The goal is no longer just to build a model that knows everything, but to build a system that 6:40:14 6 saat 40 dakika 14 saniye thinks [music] through a problem for days, if necessary, using massive clusters of GPUs to reach a breakthrough. 6:40:23 6 saat 40 dakika 23 saniye The competition in 2026 has never been fiercer. 6:40:27 6 saat 40 dakika 27 saniye [music] 6:40:27 6 saat 40 dakika 27 saniye Nvidia's biggest customers, Amazon, Google, and Microsoft, have become its most dangerous rivals, pouring billions 6:40:35 6 saat 40 dakika 35 saniye into their own custom AI chips to escape the NVIDIA tax. Yet, the software mode remains unreached. While others build 6:40:44 6 saat 40 dakika 44 saniye chips, Jensen is building the entire ecosystem, the networking, the libraries, and [music] the pre-trained 6:40:51 6 saat 40 dakika 51 saniye models that make a competitor's hardware feel like a relic before it even leaves the factory. 6:40:58 6 saat 40 dakika 58 saniye In this era, Jensen Hang has become one of the world's most influential diplomat. He navigates a world where the 6:41:05 6 saat 41 dakika 5 saniye power grid is the new bottleneck and where a single shipment of chips can determine the economic future of a country. 6:41:13 6 saat 41 dakika 13 saniye The trillion dollar question of 2026 is no longer if AI will change the world, but who will own the infrastructure of that change. 6:41:28 6 saat 41 dakika 28 saniye The story of Nvidia is often told as a series of lucky breaks or inevitable triumphs. [music] But as we look at the 6:41:35 6 saat 41 dakika 35 saniye empire Jensen Hang has built, the reality is far more deliberate and far more precarious. [music] 6:41:43 6 saat 41 dakika 43 saniye In 2026, the company stands at the center of the greatest industrial shift [music] in human history. 6:41:50 6 saat 41 dakika 50 saniye Yet for Jensen, the valuation of three, four, or 5 trillion is a lagging indicator. The true metric is the oxygen. 6:42:00 6 saat 42 dakika Throughout his journey, from the dish pits of Denny's to the halls of the Supreme Court, Jensen has maintained a philosophy of intellectual [music] honesty. 6:42:09 6 saat 42 dakika 9 saniye He admits when the technology is wrong. 6:42:12 6 saat 42 dakika 12 saniye He pivots when the market [music] shifts. And he invests billions when the world calls him a fall. He [music] has turned a semiconductor company into a 6:42:21 6 saat 42 dakika 21 saniye geopolitical superpower, a software fortress, and the primary architect of a new form of life. 6:42:29 6 saat 42 dakika 29 saniye Critics ask if Nvidia [music] is a bubble waiting to burst, or if the scaling laws of AI will eventually hit a dead end. But Jensen doesn't [music] 6:42:38 6 saat 42 dakika 38 saniye operate on the timeline of a stock market cycle. He operates on the timeline of human evolution. 6:42:45 6 saat 42 dakika 45 saniye He isn't just selling [music] chips. He is selling the marginal cost of intelligence, making the most valuable resource in the universe so abundant 6:42:54 6 saat 42 dakika 54 saniye [music] 6:42:55 6 saat 42 dakika 55 saniye that it changes the very definition of what is possible. 6:43:00 6 saat 43 dakika Jensen often says that he wakes up every morning with the same feeling he had in 1993. 6:43:06 6 saat 43 dakika 6 saniye the feeling that the company is [music] going out of business. 6:43:09 6 saat 43 dakika 9 saniye It is this productive paranoia that prevents the cyclical [music] trap that claim the giants of the past. 6:43:16 6 saat 43 dakika 16 saniye He doesn't want to be the king of a legacy. [music] He wants to be the architect of a future that hasn't even been imagined yet. 6:43:27 6 saat 43 dakika 27 saniye Run, don't walk. Either you are [music] running for food or you are running from being food. In the era of the digital 6:43:35 6 saat 43 dakika 35 saniye brain, the race has only just [music] begun. 6:45:08 6 saat 45 dakika 8 saniye At the edge of the world, in a country with more sheep than people, one of the most powerful men in Silicon Valley 6:45:15 6 saat 45 dakika 15 saniye built an escape hatch. Not a vacation home, not a tax [music] shelter, a contingency plan. 6:45:25 6 saat 45 dakika 25 saniye In 2011, a billionaire quietly secured citizenship in New Zealand after spending just [music] days in the 6:45:33 6 saat 45 dakika 33 saniye country. A legal backdoor, a geopolitical lifeboat deep in the [music] rugged terrain of 6:45:40 6 saat 45 dakika 40 saniye New Zealand's South Island, Peter Teal owns a vast private estate, [music] remote, secluded, and far from the centers of power. 6:45:51 6 saat 45 dakika 51 saniye While most billionaires [music] buy yachts or private islands feel secured something more strategic, New Zealand 6:45:59 6 saat 45 dakika 59 saniye citizenship [music] and a vast estate in one of the most remote democracies on Earth. The 6:46:06 6 saat 46 dakika 6 saniye purchase price for [music] this geopolitical insurance policy. 6:46:10 6 saat 46 dakika 10 saniye In 2011, Theel obtained New Zealand citizenship after spending just 12 days in the country over the previous 2 [music] years. 6:46:20 6 saat 46 dakika 20 saniye a process that normally requires years of residency. 6:46:26 6 saat 46 dakika 26 saniye The investment that secured this exceptional pathway, approximately $7 million in local assets and business investments. 6:46:36 6 saat 46 dakika 36 saniye The centerpiece, a 477 acre estate near Lake Wanaka, purchased 6:46:43 6 saat 46 dakika 43 saniye for 13.5 million New Zealand, [music] about $10 million. 6:46:50 6 saat 46 dakika 50 saniye When New Zealand media exposed the deal in 2017, [music] it sparked a national scandal. Hi, Benedict. Nice to talk to you again. 6:46:59 6 saat 46 dakika 59 saniye So, when we last spoke, you told us that Peter Teal was granted citizenship after having only visited New Zealand four times for an unknown number of days 6:47:08 6 saat 47 dakika 8 saniye because the documents had that information redacted. Right. 6:47:12 6 saat 47 dakika 12 saniye Politicians called it citizenship for sale. Opposition leaders [music] demanded investigations, 6:47:19 6 saat 47 dakika 19 saniye but Theel had already achieved his objective, a legal escape hatch in the world's most politically stable 6:47:26 6 saat 47 dakika 26 saniye democracy, a geopolitical insurance policy that money can buy. 6:47:35 6 saat 47 dakika 35 saniye Why would a man who helped [music] build the digital future prepare for the collapse of the physical one? What does 6:47:42 6 saat 47 dakika 42 saniye he see that others don't? Yes, it's the uh 1 Thessalonians 5:3, [music] the uh 6:47:49 6 saat 47 dakika 49 saniye the the slogan of the Antichrist is peace and safety. And so, which is nothing wrong with peace and safety, but 6:47:57 6 saat 47 dakika 57 saniye uh you have to sort of imagine that it resonates very differently in a world where the stakes are so absolute, where the stakes are so extreme, [music] where 6:48:04 6 saat 48 dakika 4 saniye the you know the alternative to peace and safety is, you know, Armageddon and the destruction of all things. 6:48:13 6 saat 48 dakika 13 saniye He is one of the most polarizing figures in Silicon Valley. To some, a visionary genius who saw the future early. To 6:48:22 6 saat 48 dakika 22 saniye others, the shadow financier of movements and [music] candidates who challenge liberal democratic norms. 6:48:30 6 saat 48 dakika 30 saniye This is not fear. This is strategy. 6:48:34 6 saat 48 dakika 34 saniye For decades, Peter Theel has made the same bet over and over again. Bet against consensus. better against the 6:48:43 6 saat 48 dakika 43 saniye crowd, [music] bet against the system itself. 6:48:48 6 saat 48 dakika 48 saniye To understand why he built a fortress at the end of the earth, we have to go back to a childhood of constant displacement. 6:48:55 6 saat 48 dakika 55 saniye [music] 6:48:56 6 saat 48 dakika 56 saniye To a chessboard where consensus meant nothing, to a company that [music] tried to replace money and another that learned to see everything. 6:49:07 6 saat 49 dakika 7 saniye But the estate is [music] more than a luxury retreat. It is a fortress designed for civilizational uncertainty. 6:49:16 6 saat 49 dakika 16 saniye Off-grid power systems, advanced security infrastructure, multiple evacuation routes through the [music] 6:49:23 6 saat 49 dakika 23 saniye mountains. Not built for comfort, built for continuity. 6:49:28 6 saat 49 dakika 28 saniye While the world debates progress, Peter Theel is preparing for a different possibility. 6:49:35 6 saat 49 dakika 35 saniye Not how to build the future, how to survive it. 6:49:42 6 saat 49 dakika 42 saniye The architect of dissident total estimated value of Theo's contingency infrastructure 20 to $30 million. 6:49:53 6 saat 49 dakika 53 saniye Not for lifestyle, not for prestige, but for the day the system he helped build [music] no longer holds. 6:50:01 6 saat 50 dakika 1 saniye He didn't build this because he panics easily. He built it because he has always believed that the crowd is wrong 6:50:08 6 saat 50 dakika 8 saniye [music] 6:50:09 6 saat 50 dakika 9 saniye and the future belongs to those willing to stand apart from it. Every fortress begins as an idea and Peter Theel has 6:50:18 6 saat 50 dakika 18 saniye been building intellectual fortresses since he was a child. 6:50:28 6 saat 50 dakika 28 saniye Before he was a billionaire, before he funded political outsiders, before he built machines that could see 6:50:35 6 saat 50 dakika 35 saniye everything, he was a boy [music] who never stayed in one place long enough to believe the world made sense. 6:50:43 6 saat 50 dakika 43 saniye So, he searched for a world where the rules didn't change. He found it on a chessboard. 6:50:50 6 saat 50 dakika 50 saniye To understand Peter Theel, you must understand what it means to be a permanent outsider. 6:50:57 6 saat 50 dakika 57 saniye Born in Frankfurt, West Germany, Peter Theel spent part of his early childhood in southwest Africa, now Namibia, before 6:51:06 6 saat 51 dakika 6 saniye growing up mainly in the United States between [music] Ohio and California. 6:51:12 6 saat 51 dakika 12 saniye Before he was a teenager, he had already experienced life on multiple continents, never staying long enough to feel fully at home. 6:51:22 6 saat 51 dakika 22 saniye He didn't have a hometown. He didn't have a tribe. He only had his own mind. 6:51:28 6 saat 51 dakika 28 saniye And in that isolation, he found a language that didn't require a passport. Chess. 6:51:37 6 saat 51 dakika 37 saniye For a child who changed continents [music] before he could even make friends, the outside world was unpredictable noise. But the board, the 6:51:47 6 saat 51 dakika 47 saniye board was the only place where the rules didn't change depending on the country. 6:51:53 6 saat 51 dakika 53 saniye His father, an engineer trained in a culture of precision and systems thinking, 6:52:01 6 saat 52 dakika 1 saniye passed on a belief that reality could be understood and optimized. 6:52:07 6 saat 52 dakika 7 saniye While other children sought to fit in, Peter sought the edge. He learned that the consensus of the crowd is usually a distraction. 6:52:17 6 saat 52 dakika 17 saniye If everyone is running toward the ball, you run toward where the ball is going to be. 6:52:24 6 saat 52 dakika 24 saniye Chess is the ultimate antidote to consensus. 6:52:28 6 saat 52 dakika 28 saniye In a crowd, you can hide behind a popular opinion. In chess, you are either right or you are dead. There is 6:52:35 6 saat 52 dakika 35 saniye no middle ground. There is no social construction of the board. 6:52:40 6 saat 52 dakika 40 saniye He became a serious tournament chess player drawn to a world where rules were fixed, outcomes were earned, and consensus meant [music] nothing. 6:52:52 6 saat 52 dakika 52 saniye Mid1 1980s Stanford University. 6:52:56 6 saat 52 dakika 56 saniye To the world this was the peak of American meritocracy. To Theel it was a factory of conformity. 6:53:05 6 saat 53 dakika 5 saniye While his classmates were debating how to change [music] the world through activism, Theel was wondering why they all sounded exactly the same. He saw the 6:53:14 6 saat 53 dakika 14 saniye multiculturalism movement not as progress but as a new form of fundamentalism. 6:53:20 6 saat 53 dakika 20 saniye Stanford in the late 1980s [music] was ground zero for America's culture wars, battles over multiculturalism, 6:53:28 6 saat 53 dakika 28 saniye speech, and the purpose of higher education. 6:53:32 6 saat 53 dakika 32 saniye Field believed the university was drifting toward ideological conformity, that certain views were becoming socially, if not formally, offlimits. 6:53:43 6 saat 53 dakika 43 saniye Here his investment methodology was born. Identify what the crowd considers sacred and question it. 6:53:53 6 saat 53 dakika 53 saniye If everyone says identity diversity is the most important thing, you argue that intellectual diversity is the only thing that matters. 6:54:04 6 saat 54 dakika 4 saniye He wasn't looking for friends. He was looking to recruit others who like him did not fear being hated. 6:54:13 6 saat 54 dakika 13 saniye He founded the Stanford Review. 6:54:16 6 saat 54 dakika 16 saniye The paper quickly became one of the most controversial publications on campus, 6:54:20 6 saat 54 dakika 20 saniye [music] 6:54:21 6 saat 54 dakika 21 saniye attacking what field saw as intellectual monoculture and political group think. 6:54:28 6 saat 54 dakika 28 saniye He saw that the smartest people in the country were all competing for the same narrow prizes, thinking the same narrow thoughts. 6:54:38 6 saat 54 dakika 38 saniye He did what every top student does. He followed the track. After Stanford Law, he secured a prestigious federal 6:54:47 6 saat 54 dakika 47 saniye appalate clerkship, the kind of credential that opens every elite door in America. 6:54:53 6 saat 54 dakika 53 saniye After his clerkship, he joined Sullivan and Cromwell in [music] New York, one of the most elite law firms in the world. 6:55:01 6 saat 55 dakika 1 saniye On paper, he had reached the summit. 6:55:04 6 saat 55 dakika 4 saniye Wall Street was his great negative epiphany. 6:55:09 6 saat 55 dakika 9 saniye But from his perspective, the brightest graduates in America were locked in brutal competition for careers they didn't even seem to want. 6:55:18 6 saat 55 dakika 18 saniye It looked like Renee Gerard's theory made flesh, a system where everyone desired the same prize simply because 6:55:26 6 saat 55 dakika 26 saniye everyone else did. Wall Street looked at Theo like a laboratory of mimemetic rivalry. He realized that if he won that 6:55:34 6 saat 55 dakika 34 saniye race, his prize would be becoming the man in the office next door. A copy of a copy. The day he lost the opportunity to 6:55:44 6 saat 55 dakika 44 saniye clerk for the US Supreme [music] Court wasn't a defeat. It was his liberation. 6:55:50 6 saat 55 dakika 50 saniye He lasted less than a year. But Theo's first venture after leaving law was a humbling lesson in failure. A lesson 6:55:59 6 saat 55 dakika 59 saniye that would shape everything that came after. 6:56:04 6 saat 56 dakika 4 saniye In 1996, he launched Theel Capital Management, a hedge fund focused on currency trading and macroeconomic derivatives. 6:56:16 6 saat 56 dakika 16 saniye The strategy was to make big directional bets on [music] interest rates, inflation expectations, and foreign 6:56:23 6 saat 56 dakika 23 saniye exchange movements. Initial capital raised $1 million mostly from Stanford 6:56:30 6 saat 56 dakika 30 saniye connections who believed in the chess prodigy turned lawyer turned financia. 6:56:38 6 saat 56 dakika 38 saniye The result was spectacular failure. 6:56:41 6 saat 56 dakika 41 saniye Within the first year, the fund had lost significant capital. Industry estimates 6:56:46 6 saat 56 dakika 46 saniye [music] 6:56:46 6 saat 56 dakika 46 saniye suggest losses between 30 and 40% of the initial investment pool. Investors fled. 6:56:54 6 saat 56 dakika 54 saniye Some demanded their remaining money back immediately. [music] The reputation among finance professionals, the people he [music] had 6:57:02 6 saat 57 dakika 2 saniye walked away from at Sullivan and Cromwell, took a serious hit. 6:57:08 6 saat 57 dakika 8 saniye He was no longer the Stanford genius. He was just another failed trader. 6:57:14 6 saat 57 dakika 14 saniye But this failure taught him the most important lesson of his career. Competition is for losers. 6:57:22 6 saat 57 dakika 22 saniye Do not compete in crowded markets where everyone is making the same trades with the same information [music] and the same tools. 6:57:31 6 saat 57 dakika 31 saniye Wall Street was full of extremely smart people doing the same macro trades, reading the same economic [music] 6:57:38 6 saat 57 dakika 38 saniye reports, betting on the same currency movements. It was a zero someum game played by thousands of nearly identical players. 6:57:49 6 saat 57 dakika 49 saniye He needed to find a space where the rules were still being written. Where being first mattered more than being 6:57:57 6 saat 57 dakika 57 saniye best, where a monopoly position was still available. 6:58:02 6 saat 58 dakika 2 saniye He needed technology. [music] And from the ashes of the capital management, a new philosophy was born. 6:58:11 6 saat 58 dakika 11 saniye If you want to create lasting value, you have to build a monopoly. This became his investing mantra and it would make him billions. 6:58:24 6 saat 58 dakika 24 saniye Theel walked away from the firm and went back to California not to start a tech empire but to try trading then to launch 6:58:32 6 saat 58 dakika 32 saniye a hedge fund. It failed. The system he had rejected did not welcome him back as a prodigy. It treated him like a nobody. 6:58:42 6 saat 58 dakika 42 saniye That failure would become the last lesson before his real beginning. 6:58:46 6 saat 58 dakika 46 saniye [music] 6:58:48 6 saat 58 dakika 48 saniye But he learned something. If you play the system game as everyone else, you've already lost. 6:58:55 6 saat 58 dakika 55 saniye The chess master was done with the board. He was ready to build his own. 6:59:08 6 saat 59 dakika 8 saniye So this is an ATM. What we're going to do is transform the traditional banking industry. I do not fit the picture of a banker. 6:59:17 6 saat 59 dakika 17 saniye X.com. This is Julie. 6:59:19 6 saat 59 dakika 19 saniye Raising $50 million is a matter of making a series of phone [music] calls and the money is there. 6:59:26 6 saat 59 dakika 26 saniye I've sunk the great majority of of my net worth into X.com, which is the new banking and mutual funds company on the internet [music] that I've started. 6:59:34 6 saat 59 dakika 34 saniye December 1998, Peter Theel co-founds a company called Conffinity with Max Levchin, a brilliant 6:59:43 6 saat 59 dakika 43 saniye Ukrainianborn programmer, and Luke Nosk, a fellow Stanford review illuminous. 6:59:49 6 saat 59 dakika 49 saniye Initial funding, $300,000 scraped together from friends, family, and fellow libertarian true believers from the Stamford days. 6:59:59 6 saat 59 dakika 59 saniye The original product idea, digital wallets on Palm Pilot handheld devices. 7:00:05 7 saat 5 saniye The vision was that people would beam money to each other using infrared ports on the Palm Pilots 7:00:13 7 saat 13 saniye in coffee shops, at restaurants, persontoerson, bypassing banks [music] entirely. 7:00:22 7 saat 22 saniye Total users after 6 months of operation, 12 people. literally 12. 7:00:30 7 saat 30 saniye Most of them were employees and their friends testing the system. It was a complete and utter flop. The technology 7:00:38 7 saat 38 saniye worked, but nobody cared. Nobody wanted it. March 2000, Confinity pivots hard 7:00:46 7 saat 46 saniye and launches a new feature, email-based money transfers. 7:00:52 7 saat 52 saniye You send money to any email address. The recipient gets a notification, creates an account, and the money is there. 7:01:00 7 saat 1 dakika Simple, instant, revolutionary. The name of this new service, PayPal. 7:01:06 7 saat 1 dakika 6 saniye Within weeks, user growth exploded [music] at a rate nobody had ever seen in financial services. 7:01:14 7 saat 1 dakika 14 saniye Month one, 10,000 users. Month three, 100,000 users. Month 6, 1 million users. 7:01:24 7 saat 1 dakika 24 saniye Month 12, 5 million users. 7:01:29 7 saat 1 dakika 29 saniye This was the fastest user adoption rate in the entire history of financial services. Faster than credit cards, 7:01:36 7 saat 1 dakika 36 saniye faster than checking accounts, faster than anything. 7:01:41 7 saat 1 dakika 41 saniye But here is what most people do not know about PayPal's growth. Here is the secret that the mythology leaves out. 7:01:50 7 saat 1 dakika 50 saniye PayPal's explosive user acquisition was not organic. It was not word of mouth. 7:01:57 7 saat 1 dakika 57 saniye It was not viral in the natural sense. 7:02:02 7 saat 2 dakika 2 saniye They literally bought their users with cash. The strategy was elegantly simple and brutally expensive. 7:02:11 7 saat 2 dakika 11 saniye Sign up for a PayPal account, get $10 deposited instantly. Refer a friend who 7:02:17 7 saat 2 dakika 17 saniye signs up gets another $10. Your friend also gets $10. Cost per acquisition 20 7:02:25 7 saat 2 dakika 25 saniye to $40 per user [music] depending on how many referrals each user generated. 7:02:32 7 saat 2 dakika 32 saniye Monthly cash burn rate at peak growth 10 to 12 million [music] just vanishing into a user acquisition. 7:02:41 7 saat 2 dakika 41 saniye By late 2000, PayPal [music] was spending 60 to 70 million annually just to buy users with cash incentives. 7:02:51 7 saat 2 dakika 51 saniye They were hemorrhaging money at a terrifying rate. Investors were panicking. Board members were demanding answers. 7:03:01 7 saat 3 dakika 1 saniye How long can you sustain spending $10 million a month buying users? 7:03:07 7 saat 3 dakika 7 saniye But Theel had done the mathematics. He had run the numbers obsessively. 7:03:13 7 saat 3 dakika 13 saniye Each acquired user was worth $100 to $200 in lifetime transaction fee revenue [music] through the PayPal network. They 7:03:23 7 saat 3 dakika 23 saniye were buying $100 bills for $20 [music] bills. It was either genius or insanity 7:03:30 7 saat 3 dakika 30 saniye depending on whether the math actually worked. The believed [music] it would work. He bet everything on it. But there 7:03:38 7 saat 3 dakika 38 saniye was a problem. a major problem. Another company was doing the exact [music] same thing. X.com, a finance company founded 7:03:48 7 saat 3 dakika 48 saniye by Elon Musk with money from his Zip 2 exit and a vision for online banking that was nearly identical to PayPal's. 7:03:58 7 saat 3 dakika 58 saniye Two companies, same idea, same market, both burning massive amounts of cash at 7:04:05 7 saat 4 dakika 5 saniye completely unsustainable rates. Total funding raised between both companies over $100 million. 7:04:14 7 saat 4 dakika 14 saniye Combined monthly cash burn rate over $20 million time until both companies simultaneously [music] ran out of money less than 6 months. 7:04:26 7 saat 4 dakika 26 saniye The merger was inevitable. 7:04:29 7 saat 4 dakika 29 saniye X.com and Confinity merged into a single entity. The combined company kept the PayPal name because users had already 7:04:38 7 saat 4 dakika 38 saniye adopted it. The brand had momentum. Elon Musk became chief executive [music] officer of the merged company for 5 months. 7:04:51 7 saat 4 dakika 51 saniye October 2000. While Elon Musk was on his honeymoon, the board of directors led by Peter Theel and other Confinity founders 7:05:00 7 saat 5 dakika held an emergency meeting and voted Musk out as CEO. 7:05:06 7 saat 5 dakika 6 saniye The official reasons cited strategic disagreements over technology [music] platform. Musk wanted to use Microsoft 7:05:14 7 saat 5 dakika 14 saniye software. The Confinity engineers believed in Unix based systems. The actual reason Theel wanted control, full 7:05:24 7 saat 5 dakika 24 saniye control. This was his company now. 7:05:29 7 saat 5 dakika 29 saniye Peter Theel became chief executive officer of PayPal. Elon Musk remained a major shareholder, but his operational control [music] was finished. 7:05:41 7 saat 5 dakika 41 saniye The two men, both future billionaires, both future power brokers, had [music] their first battle. feel one. At its 7:05:50 7 saat 5 dakika 50 saniye core, PayPal ran on a simple idea that turned into a powerful engine. 7:05:56 7 saat 5 dakika 56 saniye Every time money moved, PayPal took a small cut, 2.9% plus 30 cents per transaction. If that money crossed 7:06:04 7 saat 6 dakika 4 saniye [music] borders, the fee climbed to between 2 1/2 and 4%. 7:06:10 7 saat 6 dakika 10 saniye Then there was the float, the cash sitting in PayPal's accounts between payments, [music] quietly earning interest for the 7:06:17 7 saat 6 dakika 17 saniye company. Tiny slices repeated millions of times. 7:06:22 7 saat 6 dakika 22 saniye By 2001, the numbers told the story of a system coming to life. Every single day, 7:06:29 7 saat 6 dakika 29 saniye 5 to8 million flowed through PayPal's network. Each month, that translated into 10 to$15 million in revenue. 7:06:40 7 saat 6 dakika 40 saniye But growth at this speed came at a cost. 7:06:43 7 saat 6 dakika 43 saniye Running the system, fighting fraud, scaling infrastructure, acquiring users was burning 20 to30 million every month. 7:06:53 7 saat 6 dakika 53 saniye The machine worked, it just wasn't profitable yet. 7:06:58 7 saat 6 dakika 58 saniye Late 2000, PayPal's data scientists discovered something crucial. 70% of all PayPal 7:07:06 7 saat 7 dakika 6 saniye transactions were happening on eBay auctions. 7:07:10 7 saat 7 dakika 10 saniye People buying and selling random items on the internet's largest marketplace were using PayPal to move money. The 7:07:19 7 saat 7 dakika 19 saniye strategic insight became immediately clear. Make PayPal the only payment method that eBay users trust completely. 7:07:28 7 saat 7 dakika 28 saniye Own that market, become indispensable. 7:07:31 7 saat 7 dakika 31 saniye [music] 7:07:32 7 saat 7 dakika 32 saniye The execution buyer protection guarantees that eBay's own payment system did not offer 7:07:40 7 saat 7 dakika 40 saniye instant payment transfers with no 7-day check clearing period. 7:07:47 7 saat 7 dakika 47 saniye Fraud detection algorithms that were better than credit card companies. Email notifications for every transaction. 7:07:55 7 saat 7 dakika 55 saniye Simple, clean user interface. 7:08:00 7 saat 8 dakika By mid 2001, the strategy was working beyond all projections. 50% of all eBay 7:08:07 7 saat 8 dakika 7 saniye auctions accepted PayPal as a payment method. PayPal was processing $50 million daily in eBay related 7:08:16 7 saat 8 dakika 16 saniye transactions alone. And then eBay noticed and eBay was not happy. 7:08:24 7 saat 8 dakika 24 saniye eBay launched their own competing service called Billpoint and attempted to kill PayPal through the marketplace. 7:08:31 7 saat 8 dakika 31 saniye They promoted Billoint in search rankings. They penalized sellers who only accepted PayPal. They made it 7:08:39 7 saat 8 dakika 39 saniye harder to display the PayPal logo. It was war. PayPal's response was total war. 7:08:47 7 saat 8 dakika 47 saniye Temporarily lower transaction fees to undercut Bill. 7:08:52 7 saat 8 dakika 52 saniye Guarantee faster money transfers than eBay could offer. Invest heavily in superior $30 million deployed in 2001 7:09:01 7 saat 9 dakika 1 saniye fraud protection. Massive marketing spending alone. 7:09:07 7 saat 9 dakika 7 saniye By early 2002, the war was over. PayPal controlled 65% of eBay's payment market. 7:09:15 7 saat 9 dakika 15 saniye Bill point at barely 10%. 7:09:19 7 saat 9 dakika 19 saniye eBay executives looked at the numbers and reached a conclusion, if you cannot beat them, buy them. July 2002, 7:09:29 7 saat 9 dakika 29 saniye eBay acquires PayPal for $1.5 billion in eBay stock. 7:09:35 7 saat 9 dakika 35 saniye Peter Theal owned approximately $3.7% of PayPal at the time of the acquisition. 7:09:42 7 saat 9 dakika 42 saniye His equity stake was worth $55 million in eBay stock. After taxes, he walked away with approximately $40 million in 7:09:51 7 saat 9 dakika 51 saniye liquid wealth. At age 34, he had won his first billion dollar game. 7:09:58 7 saat 9 dakika 58 saniye But the money was not the most valuable thing he extracted from PayPal. The real value was the network, the PayPal mafia, 7:10:08 7 saat 10 dakika 8 saniye the name they gave themselves. And it was not ironic. It was descriptive. The core team that Theel assembled at PayPal 7:10:17 7 saat 10 dakika 17 saniye would go on to create some of the most valuable companies in human history. 7:10:22 7 saat 10 dakika 22 saniye Elon Musk Tesla market cap $650 billion. 7:10:28 7 saat 10 dakika 28 saniye SpaceX estimated value [music] $150 billion. Reed Hoffman LinkedIn sold to Microsoft for $26 billion. 7:10:39 7 saat 10 dakika 39 saniye Steve Chen, Chad Hurley, Jawed Kareem, YouTube sold to Google for 1.65 billion, now worth over 100 billion. 7:10:53 7 saat 10 dakika 53 saniye Jeremy Stoppleman and Russell Simmons, Yelp, peaked at $3 billion market cap. 7:11:00 7 saat 11 dakika David Saxs, Yammer, sold to Microsoft for $1.2 billion. 7:11:06 7 saat 11 dakika 6 saniye later founded Craft Ventures. Max Levchin, a firm 12 billion company. Also co-founded [music] 7:11:14 7 saat 11 dakika 14 saniye Yelp. Keith Rabo, COO of Square, partner at Founders Fund, investor in dozens of unicorns. 7:11:26 7 saat 11 dakika 26 saniye Roloff Bofer, partner at Seoia Capital, led investments in Instagram, YouTube, Tumblr, MongoDB, Eventbrite. 7:11:37 7 saat 11 dakika 37 saniye Total value created by the PayPal mafia across all their companies, conservatively estimated at over $200 7:11:46 7 saat 11 dakika 46 saniye billion in combined market capitalization. 7:11:50 7 saat 11 dakika 50 saniye Field's ownership stakes across this extended network through direct investments and fund positions estimated at 2 to4 billion. 7:12:01 7 saat 12 dakika 1 saniye This was not just a company that got acquired. This was the creation of the most powerful business cartel in Silicon Valley history. 7:12:12 7 saat 12 dakika 12 saniye But what made PayPal different was not the technology. Not really. The technology was impressive but not miraculous. 7:12:22 7 saat 12 dakika 22 saniye What made PayPal different was the culture, the religion of extreme meritocracy. 7:12:29 7 saat 12 dakika 29 saniye The hiring criteria were brutally specific. 7:12:34 7 saat 12 dakika 34 saniye One raw intelligence, high test scores, ability to solve [music] complex puzzles, proof you could think better than everyone else. Two, intensity. 7:12:46 7 saat 12 dakika 46 saniye Are you willing to work 100hour weeks? 7:12:49 7 saat 12 dakika 49 saniye Are you willing to sacrifice everything else in your life for the mission? 7:12:54 7 saat 12 dakika 54 saniye Three, missionary zeal. Do you actually believe we are changing the world or are you here for a paycheck? 7:13:03 7 saat 13 dakika 3 saniye Four, loyalty to the tribe. Will you protect the other members? Will you put the group above yourself? 7:13:12 7 saat 13 dakika 12 saniye Average employee age at PayPal [music] 25 years old. Average work week 80 to 100 hours. 7:13:21 7 saat 13 dakika 21 saniye Office culture libertarian, anti-regulation, contrarian, anti-establishment. 7:13:28 7 saat 13 dakika 28 saniye They called themselves the mafia specifically because loyalty mattered more than credentials, 7:13:37 7 saat 13 dakika 37 saniye more than degrees, more than previous experience. Theel's operating principle stated explicitly and repeatedly, 7:13:45 7 saat 13 dakika 45 saniye talented people do not want to work with people who are less talented than they are. So every new hire must be more 7:13:53 7 saat 13 dakika 53 saniye talented than [music] the average current employee. Otherwise, we are diluting the talent pool. This created a 7:14:02 7 saat 14 dakika 2 saniye self-reinforcing escalation, [music] an arms race of hiring. Every new person raised the bar. The standards became 7:14:10 7 saat 14 dakika 10 saniye higher and higher. Only the absolute best could get in. And once you were in, 7:14:17 7 saat 14 dakika 17 saniye you were family. But here is what most people forget about PayPal. [music] Here is the original vision that got 7:14:24 7 saat 14 dakika 24 saniye erased from the mythology. PayPal was supposed [music] to destroy the Federal Reserve. It was supposed to undermine 7:14:32 7 saat 14 dakika 32 saniye state [music] control of currency. That was the actual mission. That was why Peter Theel, the libertarian ideologue, cared so much. 7:14:43 7 saat 14 dakika 43 saniye The original vision laid out in Theo's founding documents create a new digital currency outside government [music] control. 7:14:52 7 saat 14 dakika 52 saniye Enable true peer-to-peer transactions globally without [music] state intermediaries. 7:14:58 7 saat 14 dakika 58 saniye Undermine the state monopoly on money creation and management. 7:15:03 7 saat 15 dakika 3 saniye build the financial infrastructure for a stateless society. 7:15:08 7 saat 15 dakika 8 saniye What actually happened? To become mainstream, [music] to actually scale, PayPal had to compromise every single founding 7:15:16 7 saat 15 dakika 16 saniye principle. They had to integrate [music] with the traditional banking system, the enemy. They had to comply with know your 7:15:24 7 saat 15 dakika 24 saniye customer and anti-moneyaundering regulations, government control. 7:15:30 7 saat 15 dakika 30 saniye They had to partner with credit card companies. The old system they wanted to destroy. [music] They had to get licensed in every single 7:15:38 7 saat 15 dakika 38 saniye state. Regulatory capture. They had to report suspicious [music] transactions to federal authorities. 7:15:46 7 saat 15 dakika 46 saniye Surveillance. By 2002, PayPal [music] was regulated exactly like a bank. 7:15:53 7 saat 15 dakika 53 saniye Partnered with banks, dependent on banks for all core functionalities. The libertarian revolution had become just 7:16:00 7 saat 16 dakika another fintech company playing by the government's rules. 7:16:05 7 saat 16 dakika 5 saniye The learned the most important lesson of his career from PayPal's failure to achieve its [music] revolutionary mission. You cannot disrupt the system 7:16:14 7 saat 16 dakika 14 saniye from inside the system. If you want to change [music] the rules, you cannot ask permission from the people who wrote 7:16:21 7 saat 16 dakika 21 saniye them. This lesson would shape everything he did next. Palanteer, Facebook, 7:16:29 7 saat 16 dakika 29 saniye [music] 7:16:30 7 saat 16 dakika 30 saniye his political investments, everything. 7:16:34 7 saat 16 dakika 34 saniye [music] The PayPal acquisition was not an ending. It was a beginning, the start of something much larger. The pattern 7:16:42 7 saat 16 dakika 42 saniye that emerged [music] over the next 20 years. PayPal veterans leave and start new companies in different sectors. 7:16:50 7 saat 16 dakika 50 saniye Theel invests early as angel investor [music] or through founders fund. PayPal mafia members join each other's boards 7:16:58 7 saat 16 dakika 58 saniye of directors. Cross investment between all their venture funds [music] creates alignment. Preferential access to deal flow because of network relationships. 7:17:08 7 saat 17 dakika 8 saniye Shared intelligence [music] about markets, technology, and opportunities. 7:17:13 7 saat 17 dakika 13 saniye Real examples of how the network compounds. Reed [music] Hoffman introduces Theel to Mark Zuckerberg in 2004. 7:17:22 7 saat 17 dakika 22 saniye Theel invests $500,000 [music] in Facebook, eventually makes over $1 billion. 7:17:30 7 saat 17 dakika 30 saniye Roloff Bother [music] joins Sequoia Capital and invests in multiple Theelbacked companies, creating reciprocal deal flows. 7:17:39 7 saat 17 dakika 39 saniye David Saxs hosts high dollar fundraisers 7:17:41 7 saat 17 dakika 41 saniye [music] 7:17:42 7 saat 17 dakika 42 saniye for Theo's political candidates, mixing business and politics seamlessly. 7:17:49 7 saat 17 dakika 49 saniye Max Levchim provides seed capital for [music] Palanteer and serves as advisor lending credibility. 7:17:57 7 saat 17 dakika 57 saniye This network effect multiplier is precisely how Theel turned $55 million from PayPal [music] into over $5 billion in net worth today. 7:18:09 7 saat 18 dakika 9 saniye The PayPal mafia is not a cute nickname. 7:18:13 7 saat 18 dakika 13 saniye It is not a metaphor. It is the most successful organized business [music] cartel in Silicon Valley history. 7:18:20 7 saat 18 dakika 20 saniye A self-reinforcing [music] network of wealth, power, and influence that has shaped the entire technology industry 7:18:27 7 saat 18 dakika 27 saniye for two decades. And Peter Theal sits at the center of it all. The Godfather. 7:18:41 7 saat 18 dakika 41 saniye After PayPal, Peter Theel was a man with a billion dollars and a dangerous [music] secret. While other investors 7:18:49 7 saat 18 dakika 49 saniye were looking at spreadsheets and profit margins, Theel was looking at the human soul [music] through the eyes of his mentor, Renee Gerard. 7:18:58 7 saat 18 dakika 58 saniye Gerard taught him a terrifying truth. Human beings don't know what they want. 7:19:05 7 saat 19 dakika 5 saniye We are mimemetic creatures. We don't desire things for themselves. We desire them because other people desire them. 7:19:13 7 saat 19 dakika 13 saniye We are copy machines disguised as individuals. August 2004. 7:19:21 7 saat 19 dakika 21 saniye Facebook has been online for exactly 6 months. It started as a Harvard dorm project and has now expanded to several college campuses. 7:19:33 7 saat 19 dakika 33 saniye The metrics that Zuckerberg shows Theel total registered users 200,000 7:19:40 7 saat 19 dakika 40 saniye almost entirely college students daily active user rate 70 to 80% engagement 7:19:48 7 saat 19 dakika 48 saniye unprecedented in web [music] services revenue $0 no business model yet 7:19:55 7 saat 19 dakika 55 saniye valuation Zuckerberg is asking for $5 million every single professional venture capitalist in Silicon Valley has passed 7:20:05 7 saat 20 dakika 5 saniye on Facebook. Every major firm has looked into it and said no. The reasons they gave it is just a [music] college 7:20:13 7 saat 20 dakika 13 saniye directory. Limited market. Fster has already 5 million users [music] and is the leader in social networking. 7:20:22 7 saat 20 dakika 22 saniye MySpace is dominant with 8 million users and growing fast. There is no obvious business model or revenue stream. 7:20:29 7 saat 20 dakika 29 saniye [music] 7:20:30 7 saat 20 dakika 30 saniye Mark Zuckerberg is too young, too inexperienced, too risky as a founder. 7:20:38 7 saat 20 dakika 38 saniye Peter Theel saw something completely different, something that had nothing to do with technology. 7:20:45 7 saat 20 dakika 45 saniye The had spent years studying Renee Gerard's mimemetic theory, the philosophical framework that [music] would shape his entire investment 7:20:54 7 saat 20 dakika 54 saniye approach, the core idea, humans do not have original desires. 7:21:00 7 saat 21 dakika We desire what other people [music] desire. We learn what to want by watching other people want. Desire is 7:21:08 7 saat 21 dakika 8 saniye imitative. Desire is social. Desire is mimemetic. 7:21:14 7 saat 21 dakika 14 saniye When Theel looked at Facebook, he did not see a technology platform for connecting friends. He saw something far 7:21:21 7 saat 21 dakika 21 saniye more powerful. He saw the perfect mimemetic desire machine. the insight that made Theel invest. Social networks 7:21:30 7 saat 21 dakika 30 saniye do not create value by connecting [music] people. That is not where the money is. The money is in comparison. 7:21:37 7 saat 21 dakika 37 saniye The money is in making people compare themselves to each other constantly. 7:21:43 7 saat 21 dakika 43 saniye You see your friend's vacation photos, you want a better vacation. You see someone's job promotion announcement, 7:21:51 7 saat 21 dakika 51 saniye you want higher status. You see someone's relationship photos, you want [music] romance. 7:21:58 7 saat 21 dakika 58 saniye You see someone getting likes and comments, you want validation. 7:22:04 7 saat 22 dakika 4 saniye You see someone's perfect life, you feel your own life is inadequate. Facebook was not selling connections. 7:22:13 7 saat 22 dakika 13 saniye Facebook was selling envy. And envy the understood from Gerard is the most powerful [music] economic force in human history. 7:22:22 7 saat 22 dakika 22 saniye The desire for what others have. They need to keep up. The fear of being left behind. Infinite envy creates infinite 7:22:32 7 saat 22 dakika 32 saniye demand. Infinite demand creates infinite value. September 2004. 7:22:40 7 saat 22 dakika 40 saniye Peter Theal wires $500,000 to Facebook incororated. 7:22:46 7 saat 22 dakika 46 saniye The deal terms 10.2% equity ownership in the company. A board seat giving him 7:22:53 7 saat 22 dakika 53 saniye governance rights and inside information. 7:22:56 7 saat 22 dakika 56 saniye Right of first refusal on all future funding rounds. Post money valuation of exactly $5 million. 7:23:05 7 saat 23 dakika 5 saniye Mark Zuckerberg's reaction after the deal closed. This guy actually gets it. He understands what we are building. 7:23:14 7 saat 23 dakika 14 saniye Silicon Valley's reaction. Peter Theal just threw away half a million dollars on a college kid's website. This will be his biggest failure. 7:23:24 7 saat 23 dakika 24 saniye What happened next rewrote the history of venture capital. 7:23:29 7 saat 23 dakika 29 saniye 2004 end of year. 200,000 users grew to 1 million users. 7:23:36 7 saat 23 dakika 36 saniye Five times growth in 4 months. 2005 1 million users becomes 5.5 million 7:23:44 7 saat 23 dakika 44 saniye users. 2006 5.5 million users becomes 12 million users. 2007 12 million users 7:23:54 7 saat 23 dakika 54 saniye exploded to 50 million users. 2008 50 million users doubles to 100 million users. 7:24:04 7 saat 24 dakika 4 saniye 2009 100 million users becomes 350 million users. growth rate. The user base was 7:24:12 7 saat 24 dakika 12 saniye doubling every 6 to9 months for five consecutive years. 7:24:18 7 saat 24 dakika 18 saniye This growth curve had never been seen before in business history. Not even close. As Facebook grew, its valuation 7:24:27 7 saat 24 dakika 27 saniye grew and Peter Theel's stake grew with it. 7:24:32 7 saat 24 dakika 32 saniye May 2005, Axel Partners invests $12.7 million at $100 million valuation. 7:24:40 7 saat 24 dakika 40 saniye Field's 10.2% stake is now worth $10.2 million. He has achieved 20 times return in 9 months. 7:24:50 7 saat 24 dakika 50 saniye April 2006, Greylock Partners and Meritech Capital [music] invest $27.5 million at $500 million valuation. 7:25:01 7 saat 25 dakika 1 saniye Theel stake is now worth $51 million, 100 times return on his original investment. 7:25:08 7 saat 25 dakika 8 saniye October 2007, Microsoft invests $240 million, valuing Facebook at $15 billion. 7:25:19 7 saat 25 dakika 19 saniye Theel stake is now worth $1.5 billion, a 300,000 times return in 3 years. 7:25:28 7 saat 25 dakika 28 saniye 2009 through 2011, multiple private sales and secondary transactions value Facebook at $50 billion. 7:25:38 7 saat 25 dakika 38 saniye The stake, if he had held everything, would be worth $5 billion. 7:25:45 7 saat 25 dakika 45 saniye May 18th, 2012. 7:25:48 7 saat 25 dakika 48 saniye Facebook goes public at a market capitalization of $14 billion. 7:25:55 7 saat 25 dakika 55 saniye But Theel does not hold everything. He is strategic. He is tactical. He takes profits. At the initial public offering, 7:26:04 7 saat 26 dakika 4 saniye Theel sells $640 million worth of shares immediately. 7:26:10 7 saat 26 dakika 10 saniye Over the following 6 months, he sells the remainder of his stake in carefully timed transactions. 7:26:17 7 saat 26 dakika 17 saniye Total cash realized from the Facebook investment approximately $1 billion. 7:26:24 7 saat 26 dakika 24 saniye Initial investment in August 2004, $500,000. 7:26:29 7 saat 26 dakika 29 saniye Total cash realized by end of 2012, $1 billion. 7:26:35 7 saat 26 dakika 35 saniye Total return 2,000 times in 8 years. 7:26:40 7 saat 26 dakika 40 saniye This is the single greatest venture capital return in recorded [music] history. Nothing else comes close. But 7:26:47 7 saat 26 dakika 47 saniye here is the twist. The haunting decision that [music] Theel himself admits keeps him awake at night. Selling was a mistake. 7:26:57 7 saat 26 dakika 57 saniye If Peter Theal had held his original 10.2% [music] stake and had never sold a single share, that stake at Facebook's peak market 7:27:07 7 saat 27 dakika 7 saniye capitalization [music] in 2021 would have been worth $12 billion. 7:27:14 7 saat 27 dakika 14 saniye $12 [music] billion. 7:27:17 7 saat 27 dakika 17 saniye He left $100 billion on the table by selling early. 7:27:22 7 saat 27 dakika 22 saniye The himself admitted this publicly, saying, "The [music] mistake was not investing in Facebook. The mistake was selling Facebook. 7:27:31 7 saat 27 dakika 31 saniye I should have held longer. I should have believed [music] more. It is the single most expensive decision of his life." 7:27:39 7 saat 27 dakika 39 saniye Years later in a Stanford lecture, Theel explained his actual investment thesis, 7:27:46 7 saat 27 dakika 46 saniye the real reason he invested. I did not invest in Facebook because [music] I thought social networks were going to be 7:27:54 7 saat 27 dakika 54 saniye big. I invested because I understood that humans will always want to be more like their peers. That desire is 7:28:01 7 saat 28 dakika 1 saniye infinite. [music] It never stops. It only intensifies. 7:28:06 7 saat 28 dakika 6 saniye An infinite [music] desire creates infinite value. The mimemetic theory made him a billionaire. 7:28:14 7 saat 28 dakika 14 saniye The mimemetic theory also made him terrified of what he had helped create. 7:28:20 7 saat 28 dakika 20 saniye A machine that weaponizes human envy. A system that profits from making people feel inadequate. 7:28:28 7 saat 28 dakika 28 saniye An algorithm that amplifies the worst aspects of human nature. 7:28:33 7 saat 28 dakika 33 saniye Peter Theal helped build the most powerful behavior modification system in human history. And then he cashed out for a billion dollars. 7:28:52 7 saat 28 dakika 52 saniye 2003 Peter Theel [music] has a problem. 7:28:56 7 saat 28 dakika 56 saniye It is the CIA's problem, but they think the [music] can solve it. His PayPal anti-fraud algorithms have become 7:29:04 7 saat 29 dakika 4 saniye [music] so sophisticated at detecting patterns in financial transactions at finding terrorists trying to move money 7:29:11 7 saat 29 dakika 11 saniye through [music] banking systems that the CIA venture capital arm in QEL requested a meeting. 7:29:20 7 saat 29 dakika 20 saniye The pitch from the CIA, can you build what you built for [music] PayPal but for national security? Can you find terrorists the way you found fraudsters? 7:29:31 7 saat 29 dakika 31 saniye May 2003, Peter Theel co-founds Palunteer Technologies with an unusual group of co-founders. 7:29:40 7 saat 29 dakika 40 saniye The founding team, Alex Karp, chief executive officer, Stanford Law Degree, philosophy, PhD from Frankfurt 7:29:48 7 saat 29 dakika 48 saniye University in Germany, former human rights lawyer who once worked on refugee cases. 7:29:55 7 saat 29 dakika 55 saniye an extremely odd choice to run a company that will become the most powerful surveillance technology provider on Earth. 7:30:04 7 saat 30 dakika 4 saniye Nathan Gettings, chief technology officer. PayPal's lead security engineer. Brilliant programmer. Joe 7:30:12 7 saat 30 dakika 12 saniye Lonsdale, a Stamford undergraduate student, barely [music] 20 years old, one of the first Theel fellows. Steven 7:30:21 7 saat 30 dakika 21 saniye Cohen, PayPal's chief security architect. The person who actually built the fraud detection [music] algorithms. 7:30:28 7 saat 30 dakika 28 saniye Initial funding $2 million entirely from Peter Theel's personal capital. No outside investors yet. This is his project. 7:30:39 7 saat 30 dakika 39 saniye The mission statement. Build software that can find patterns in massive data sets from disperate incompatible sources. 7:30:49 7 saat 30 dakika 49 saniye The kind of data that if intelligency agencies had been able to analyze it properly could have prevented September 11th, 2001. 7:31:00 7 saat 31 dakika The company name Palunteer named after the seeing stones in Lord of the Rings, the magical orbs that allow their 7:31:08 7 saat 31 dakika 8 saniye possessors to see anything happening anywhere in Middle Earth. Even the name revealed the ambition total information awareness. 7:31:18 7 saat 31 dakika 18 saniye the ability to see everything. 7:31:23 7 saat 31 dakika 23 saniye 2005, the CIA's venture capital arm in CQEL 7:31:28 7 saat 31 dakika 28 saniye [music] 7:31:29 7 saat 31 dakika 29 saniye invest $2 million in Palanteer's series A funding round. This was not just money. This was validation from the 7:31:37 7 saat 31 dakika 37 saniye intelligence [music] community, a stamp of approval from the most secretive, most paranoid organization in the US [music] government. 7:31:46 7 saat 31 dakika 46 saniye Initial contract value undisclosed. 7:31:50 7 saat 31 dakika 50 saniye Government intelligence [music] contracts are classified by law, but industry analysts estimate the first CIA 7:31:57 7 saat 31 dakika 57 saniye contracts were worth 5 to 10 million annually. The product was called Palunteer Gotham. 7:32:05 7 saat 32 dakika 5 saniye The name itself was significant. Gotham, the dark city that needs Batman. The city that needs surveillance to fight crime. core technical capabilities. 7:32:17 7 saat 32 dakika 17 saniye Integrate data from dozens of incompatible government databases that were never designed to communicate with 7:32:24 7 saat 32 dakika 24 saniye each other. From hidden connections between people, places, financial transactions, communications metadata, 7:32:33 7 saat 32 dakika 33 saniye visualize networks of relationships in ways human analysts could understand intuitively. 7:32:40 7 saat 32 dakika 40 saniye Predict future behavior and likely attack patterns based on historical data. Specific use cases for 7:32:48 7 saat 32 dakika 48 saniye intelligence agencies. Track terrorist cells across multiple countries. Map drug trafficking routes from production to distribution. 7:32:58 7 saat 32 dakika 58 saniye Identify money laundering networks moving funds for organized crime. 7:33:03 7 saat 33 dakika 3 saniye Predict insurgent attacks in Iraq and Afghanistan based on pattern recognition. It worked. The software 7:33:11 7 saat 33 dakika 11 saniye actually worked. By 2006, Palanteer software was being actively used in Iraq for counterinsurgency [music] 7:33:19 7 saat 33 dakika 19 saniye operations and in IED attack prediction. 7:33:24 7 saat 33 dakika 24 saniye Afghanistan for predicting Taliban leadership networks. Langley, Virginia at CIA headquarters for threat analysis. 7:33:33 7 saat 33 dakika 33 saniye FBI field officers nationwide for domestic terrorism investigation. 7:33:40 7 saat 33 dakika 40 saniye Early revenue growth told the story of Palunteers expanding reach. 2005 $3 million in revenue. Government 7:33:49 7 saat 33 dakika 49 saniye contracts [music] only. 2006 $10 million. 2007 $25 million. [music] 7:33:58 7 saat 33 dakika 58 saniye 2008 $50 million. First commercial clients added 2010 $150 million [music] 7:34:07 7 saat 34 dakika 7 saniye 2012 $400 million. By 2012, Palanteer had achieved something extremely rare for a high- growth technology company. 7:34:18 7 saat 34 dakika 18 saniye Profitability. 7:34:20 7 saat 34 dakika 20 saniye They were actually making money, [music] not just burning venture capital. Customer revenue breakdown in 2012. 7:34:28 7 saat 34 dakika 28 saniye Government contracts, 60% of revenue, $240 million. 7:34:35 7 saat 34 dakika 35 saniye Commercial clients, 40% of revenue, $160 million. 7:34:42 7 saat 34 dakika 42 saniye May the 1st, 2011. [music] Palanteer Software plays a role in the operation that kills Osama bin Laden. A 7:34:50 7 saat 34 dakika 50 saniye role that remains partially classified, but has been confirmed by multiple sources. 7:34:57 7 saat 34 dakika 57 saniye How Palanteer contributed. Palanteer Gotham integrated dozens of different intelligence sources. 7:35:04 7 saat 35 dakika 4 saniye CIA human intelligence on career networks. NSA signal intelligence including phone metadata and email communications patterns. 7:35:15 7 saat 35 dakika 15 saniye National Geospatial Intelligence Agency satellite imagery of potential compound locations. 7:35:23 7 saat 35 dakika 23 saniye historical pattern analysis of previous highv value target operations in Pakistan. 7:35:30 7 saat 35 dakika 30 saniye The system identified patterns and connections that human analysts working with separate databases that did not 7:35:37 7 saat 35 dakika 37 saniye communicate had missed. It narrowed the search area and helped confirm the identity of the Abotabad compound. 7:35:47 7 saat 35 dakika 47 saniye When asked about Palanteer's role in the bin Laden operation, Theo gave carefully worded response. I cannot comment on 7:35:55 7 saat 35 dakika 55 saniye specific operations or specific clients due to classification requirements, but I will say this. Tools that help protect 7:36:05 7 saat 36 dakika 5 saniye American lives and help intelligence professionals do their jobs better. That is our mission. 7:36:13 7 saat 36 dakika 13 saniye This single operation, this single success legitimized Palanteer's entire value proposition to the national security establishment. 7:36:23 7 saat 36 dakika 23 saniye After bin Laden, the contracts poured in. 7:36:28 7 saat 36 dakika 28 saniye After the bin Laden success, Palanteer's government business exploded. Revenue growth from 2012 to 2015. 7:36:39 7 saat 36 dakika 39 saniye 2012, $400 million in revenue. 2013, $600 million. [music] 7:36:46 7 saat 36 dakika 46 saniye 2014, $900 million. 2015, $1.5 billion in 7:36:53 7 saat 36 dakika 53 saniye revenue. Major new contracts [music] announced publicly. 7:37:00 7 saat 37 dakika US Department of Defense, $222 million for a 3-year data integration platform contract. 7:37:10 7 saat 37 dakika 10 saniye US Army, $800 million for comprehensive data platform modernization across all 7:37:17 7 saat 37 dakika 17 saniye army systems, US Special Operations Command, $444 million for targeting and intelligence 7:37:26 7 saat 37 dakika 26 saniye fusion, Department of Homeland Security, $240 million for border security and immigration enforcement systems. 7:37:36 7 saat 37 dakika 36 saniye Palanteer had become the single most important software company in the entire US defense and intelligence establishment, 7:37:45 7 saat 37 dakika 45 saniye more important than traditional defense contractors, more embedded in classified operations. 7:37:52 7 saat 37 dakika 52 saniye Simultaneously, Palunteer launched a commercial product called Palunteer Foundry [music] for private sector clients. The sales 7:38:00 7 saat 38 dakika pitch to corporate America. Your company has exactly the same problem as the CIA. 7:38:07 7 saat 38 dakika 7 saniye Too much data, too many incompatible systems, not enough [music] insight. We can help you find the patterns you are 7:38:15 7 saat 38 dakika 15 saniye missing. Major commercial clients and estimated contract values. 7:38:22 7 saat 38 dakika 22 saniye JP Morgan Chase, over $100 million, fraud detection and financial crime 7:38:29 7 saat 38 dakika 29 saniye prevention. Morgan Stanley over $50 million risk management and regulatory 7:38:35 7 saat 38 dakika 35 saniye compliance. Airbus over $75 million supply chain optimization and manufacturing analytics. 7:38:45 7 saat 38 dakika 45 saniye Merc Pharmaceuticals over $60 million drug discovery analytics and clinical trial data integration. 7:38:55 7 saat 38 dakika 55 saniye BP over $80 million oil field production optimization and predictive maintenance. 7:39:03 7 saat 39 dakika 3 saniye Commercial revenue growth from 2015 to 2020. 7:39:08 7 saat 39 dakika 8 saniye In 2015, they got $600 million commercial revenue. By 2016, the number 7:39:15 7 saat 39 dakika 15 saniye was around $800 billion. In 2017, they reached $1.1 billion in commercial revenue, and it became their peak year. 7:39:26 7 saat 39 dakika 26 saniye 2018 made them hit the $750 million mark, a temporary decline due to customer churn. 7:39:36 7 saat 39 dakika 36 saniye In 2019, revenue was around $745 million, and by 2020, they reached $1.1 billion. 7:39:45 7 saat 39 dakika 45 saniye Again, this recovery was driven by COVID analytics contracts. Palanteer had 7:39:52 7 saat 39 dakika 52 saniye created a business model with two enormous locked in customer bases, the US government and the largest corporations [music] in the world. 7:40:05 7 saat 40 dakika 5 saniye But Palanteer's work, especially for government agencies, attracted intense controversy and moral criticism. 7:40:14 7 saat 40 dakika 14 saniye In 2019, they secured a contract with ICE for $49 million. The purpose of the 7:40:21 7 saat 40 dakika 21 saniye contract was enforcement and removal operations [music] systems, meaning a software used to identify, 7:40:29 7 saat 40 dakika 29 saniye track, and process undocumented immigrants [music] for deportation. 7:40:34 7 saat 40 dakika 34 saniye This project came with a controversy attached. The software was used during the family separation [music] policy at 7:40:41 7 saat 40 dakika 41 saniye the southern border. Children separated from their parents. Families torn apart. 7:40:47 7 saat 40 dakika 47 saniye Palanteer software helped make it operationally [music] possible. Hundreds of Palunteer employees signed an internal letter demanding the [music] company cancel the ICE contract. 7:41:00 7 saat 41 dakika They argued the company was enabling human rights [music] abuses. The and Karp's response, absolute refusal. The contract would continue. 7:41:11 7 saat 41 dakika 11 saniye Alex Kart gave a public statement saying that they had chosen [music] sides and that the company supported American institutions. 7:41:20 7 saat 41 dakika 20 saniye But this was not the only controversy Palanteer [music] has faced. 7:41:25 7 saat 41 dakika 25 saniye Palanteer worked alongside the NYPD with a contract estimated between 50 and $100 billion. The mission predictive policy. 7:41:36 7 saat 41 dakika 36 saniye They were asked to use historical crime data to predict where future crimes will occur and who is likely to commit 7:41:43 7 saat 41 dakika 43 saniye [music] them. The controversy civil rights groups argued that system perpetuated racial bias. Minority neighborhoods were flagged as high risk. 7:41:54 7 saat 41 dakika 54 saniye Innocent people were [music] put under surveillance based on algorithmic predictions. 7:42:01 7 saat 42 dakika 1 saniye Joe Lndale, Palanteer co-founder, had made a personal investment in Cambridge Analytica. 7:42:08 7 saat 42 dakika 8 saniye Multiple Palanteer employees on their own time helped Cambridge Analytica build data integration models. 7:42:18 7 saat 42 dakika 18 saniye Both companies use similar approaches to data harvesting and psychological profiling. 7:42:24 7 saat 42 dakika 24 saniye When the connection was exposed by journalists, Palanteer claimed there was no institutional relationship, just coincidental personal connections. 7:42:36 7 saat 42 dakika 36 saniye But the damage to Palanteer's reputation was done. The had built the panoptagon, the allseeing eye of corporate and government surveillance. 7:42:47 7 saat 42 dakika 47 saniye September the 30th, 2020. 7:42:50 7 saat 42 dakika 50 saniye After 17 years as a private company, one of the longest periods of private operation for any major tech company, 7:42:58 7 saat 42 dakika 58 saniye Palanteer finally goes public through a direct listing. 7:43:04 7 saat 43 dakika 4 saniye They went public at $10 per share and their market capitalization at market open was $16 billion. 7:43:14 7 saat 43 dakika 14 saniye By the first day, shares were down 5%. 7:43:17 7 saat 43 dakika 17 saniye The stock was initially a disappointment. 7:43:20 7 saat 43 dakika 20 saniye Investors were skeptical of the business model, worried about customer concentration, concerned about the controversy. 7:43:29 7 saat 43 dakika 29 saniye But then COVID 19 created massive new demand for Palanteer's capabilities. 7:43:35 7 saat 43 dakika 35 saniye 2020 to 2021, Palanteer wins enormous pandemic related government contracts with governments across the world. The 7:43:45 7 saat 43 dakika 45 saniye pandemic proved that governments needed Palanteer and the market responded. 7:43:50 7 saat 43 dakika 50 saniye By late 2021, Palanteer stock had exploded, $29 per share at 190% gain 7:43:59 7 saat 43 dakika 59 saniye from the direct listing price. Market capitalization $60 billion. 7:44:08 7 saat 44 dakika 8 saniye Peter Theal stake approximately 7% ownership worth $4.2 billion at the 7:44:15 7 saat 44 dakika 15 saniye peak. 2022 the tech crash hits Palanteer brutally hard. Stock prices crash to $6 per 7:44:24 7 saat 44 dakika 24 saniye share, down 8% from the peak. Market cap collapses to $13 billion. 7:44:31 7 saat 44 dakika 31 saniye The paper wealth from Palanteer evaporates. Billions gone. 2023 to 2024, the AI boom creates new opportunity. 7:44:42 7 saat 44 dakika 42 saniye [music] 7:44:43 7 saat 44 dakika 43 saniye Palanteer markets itself as the AI platform for governments and enterprises. And they get major new contract wins. 7:44:51 7 saat 44 dakika 51 saniye The US Army invested $463 million for AI powered [music] battlefield analytics and decision support systems. 7:45:01 7 saat 45 dakika 1 saniye Palanteer stock recovered 25 to 30 per share by 2024. 7:45:08 7 saat 45 dakika 8 saniye As of 2024, Peter Theel's current Palanteer holdings are approximately 7% of all shares with a current value 7:45:16 7 saat 45 dakika 16 saniye ranging from 3.8 to $4.5 billion depending on daily stock price. 7:45:26 7 saat 45 dakika 26 saniye This makes Palunteer Field's single largest source of personal wealth. In 2024, Palanteer's financial [music] 7:45:35 7 saat 45 dakika 35 saniye performance was divided between government and commercial revenue. The company's net income was $2.5 billion 7:45:44 7 saat 45 dakika 44 saniye annually. And as big as the number is, this might represent a future problem for the company. If government budget 7:45:52 7 saat 45 dakika 52 saniye cuts happen, Palanteer is extremely vulnerable. 7:45:56 7 saat 45 dakika 56 saniye Their entire business model depends on continued government spending. 7:46:01 7 saat 46 dakika 1 saniye Here is Peter Theel's fundamental contradiction. 7:46:05 7 saat 46 dakika 5 saniye The paradox at the heart of everything he has built. He claims to be a libertarian who values individual freedom above all else. A man who 7:46:14 7 saat 46 dakika 14 saniye believes government power should be minimal. A man who wrote that freedom and democracy are incompatible. 7:46:21 7 saat 46 dakika 21 saniye Yet he built the most powerful private surveillance technology company in human history. A company that gives [music] 7:46:29 7 saat 46 dakika 29 saniye governments and corporations unprecedented ability to monitor, track, predict, and control human behavior. 7:46:38 7 saat 46 dakika 38 saniye Palanteer's technical capabilities include realtime tracking of individuals across multiple data sources and databases. 7:46:49 7 saat 46 dakika 49 saniye Predictive behavioral modeling that forecasts what people will do before they do it. Network analysis that maps 7:46:57 7 saat 46 dakika 57 saniye every person you have ever contacted through any medium. Complete integration of financial records. [music] 7:47:05 7 saat 47 dakika 5 saniye communication metadata, location history, and social relationship data into a single unified profile. 7:47:14 7 saat 47 dakika 14 saniye Field's defense of this contradiction was explaining that the alternative to Palanteer is not no surveillance. 7:47:24 7 saat 47 dakika 24 saniye The alternative is worse surveillance performed by incompetent government bureaucrats using decades old technology that does not work properly. 7:47:37 7 saat 47 dakika 37 saniye The critics's response was obvious. They told Theo he had built the panopticon, the architecture of total surveillance. 7:47:48 7 saat 47 dakika 48 saniye A system allowing governments around the world to use their citizens information to control them, not a system to protect them, said the critics. 7:47:57 7 saat 47 dakika 57 saniye Palanteer now operates in [music] dozens of countries worldwide. the United States, the United Kingdom, Germany, France, Australia, and even Japan. 7:48:08 7 saat 48 dakika 8 saniye The company has some controversial international clients, some confirmed, some alleged, but the total estimated 7:48:17 7 saat 48 dakika 17 saniye value of all global contracts lifetime, over $10 billion in contract value. 7:48:25 7 saat 48 dakika 25 saniye Palanteer is Peter Theel's most important company. Not because of its valuation, though that is substantial. 7:48:34 7 saat 48 dakika 34 saniye Not because of its revenue, though that is significant. Palanteer is important because it reveals the truth about 7:48:42 7 saat 48 dakika 42 saniye Theo's worldview. It is the bridge between his libertarian philosophy and his authoritarian reality. He claims to want freedom from government control. 7:48:54 7 saat 48 dakika 54 saniye But Palanteer gives governments unprecedented control over their citizens. The resolution of this 7:49:02 7 saat 49 dakika 2 saniye apparent contradiction, Peter Theel believes in freedom for the elite and surveillance for everyone else. 7:49:12 7 saat 49 dakika 12 saniye In his vision of the world, there are rulers and there are the ruled. There are the people who make the decisions and the people who are managed. 7:49:23 7 saat 49 dakika 23 saniye Palanteer is the enforcement mechanism for that hierarchy. The technology that ensures the rulers can see everything. 7:49:32 7 saat 49 dakika 32 saniye The system that makes resistance impossible because privacy no longer exists. And Peter Theal sits at the 7:49:40 7 saat 49 dakika 40 saniye center of that eye, watching the world, seeing everything. The architect of the surveillance state. 7:49:53 7 saat 49 dakika 53 saniye In 2016, Peter Theal made an investment that every other major technology investor avoided. [music] 7:50:02 7 saat 50 dakika 2 saniye While his peers in Silicon Valley were contributing millions to the opposing [music] campaign, Theel wrote a check 7:50:09 7 saat 50 dakika 9 saniye for $1.25 million to [music] Donald Trump's presidential campaign. This was not ideology. 7:50:17 7 saat 50 dakika 17 saniye [music] 7:50:21 7 saat 50 dakika 21 saniye Phil has always invested in contrarian positions. When everyone zigs, he zags. 7:50:29 7 saat 50 dakika 29 saniye When consensus forms in one direction, he looks for [music] asymmetric opportunities in the other. The 2006 7:50:37 7 saat 50 dakika 37 saniye donation [music] gave him something money usually cannot buy in Silicon Valley. Direct access [music] to 7:50:44 7 saat 50 dakika 44 saniye executive power. the return on that $1.25 million investment, 7:50:51 7 saat 50 dakika 51 saniye a seat on the presidential transition team, input on federal technology policy, direct communication channels to 7:51:00 7 saat 51 dakika the White House, credibility as a Washington power broker, [music] and most measurably, Palanteer's 7:51:09 7 saat 51 dakika 9 saniye government contracts increased [music] substantially during this period. 7:51:14 7 saat 51 dakika 14 saniye But feels most significant political investments [music] came in the 2022 midterm elections. 7:51:22 7 saat 51 dakika 22 saniye Two candidates, both former employees, both running for United States Senate. 7:51:29 7 saat 51 dakika 29 saniye The financial commitment was unprecedented in scale. 7:51:34 7 saat 51 dakika 34 saniye Vance had worked at Theel's venture capital firm before writing his best-selling memoir. Field's total 7:51:41 7 saat 51 dakika 41 saniye financial commitment direct campaign contribution $15 million 7:51:48 7 saat 51 dakika 48 saniye super PAC expenditures $5 million combined investment $20 million. 7:51:56 7 saat 51 dakika 56 saniye This set a [music] record as the largest single donor contribution to an individual Senate campaign in [music] 7:52:03 7 saat 52 dakika 3 saniye American history. The outcome, Vance won by six percentage points. Masters had 7:52:11 7 saat 52 dakika 11 saniye worked directly for Theel as chief operating [music] officer at Theel Capital. 7:52:17 7 saat 52 dakika 17 saniye Theel's financial commitment to his campaign was a combined investment of $20 million, but unlike Vance, Masters lost by 5 percentage points. 7:52:28 7 saat 52 dakika 28 saniye Theel's total 2022 midterm investment was over $40 million in two Senate races. Two different candidates that 7:52:37 7 saat 52 dakika 37 saniye would have allowed him to be in direct touch with power at different chambers and stages. For context, the average 7:52:44 7 saat 52 dakika 44 saniye competitive Senate race costs approximately $10 million total. Peter Theal invested four times that [music] amount on two races. 7:52:57 7 saat 52 dakika 57 saniye It's July 2024. JD Vance is selected as the Republican vice presidential 7:53:03 7 saat 53 dakika 3 saniye candidate. From a pure investment analysis perspective, this transforms the return profile on Theo's $20 million 7:53:12 7 saat 53 dakika 12 saniye commitment. He has considered the potential financial implications if this ticket wins and he gets access to 7:53:21 7 saat 53 dakika 21 saniye executive branch decisionmaking for 8 years. influence over federal contract allocation across multiple agencies. 7:53:30 7 saat 53 dakika 30 saniye Input on technology regulation affecting the portfolio companies. 7:53:37 7 saat 53 dakika 37 saniye If we consider what's the estimated return on investment for Palanteer's government business, [music] what we see is current annual government revenue of $1.5 billion. 7:53:50 7 saat 53 dakika 50 saniye potential additional contract value over eight years conservatively 5 to10 billion 7:53:59 7 saat 53 dakika 59 saniye and other defense companies in the network potential 3 to5 billion in contracts 7:54:07 7 saat 54 dakika 7 saniye regulatory treatment of cryptocurrency holdings value [music] potentially in tens of billions. 7:54:18 7 saat 54 dakika 18 saniye The theoretical return of those 20 million invested is potentially 15 to 20 billion captured across the portfolio. 7:54:27 7 saat 54 dakika 27 saniye That represents a potential of 750 to 1,000 times return. By comparison, 7:54:35 7 saat 54 dakika 35 saniye Theel's Facebook investment [music] returned 2,000 times. 7:54:40 7 saat 54 dakika 40 saniye To sum it up, the complete political spending of the from 2016 to 2022 is 70 to $80 million. 7:54:50 7 saat 54 dakika 50 saniye For context, Amazon spends 20 million annually on lobbying. Meta spends 20 million annual on lobbying. [music] 7:54:58 7 saat 54 dakika 58 saniye Google spends 12 million annually on lobbying. Field's approach is different. 7:55:05 7 saat 55 dakika 5 saniye Rather than ongoing lobbying expenditures, he makes concentrated investments in individual candidates who 7:55:12 7 saat 55 dakika 12 saniye potentially provide access for years or decades. 7:55:18 7 saat 55 dakika 18 saniye It is the venture capital model applied to politics. Make early stage investments in promising candidates. 7:55:26 7 saat 55 dakika 26 saniye Provide sufficient capital to help them win. Capture value through long-term relationships and access. 7:55:35 7 saat 55 dakika 35 saniye The candidates Theel has supported now serve on key committees. 7:55:40 7 saat 55 dakika 40 saniye Technology regulation, defense appropriations, intelligence oversight, banking and financial services. 7:55:50 7 saat 55 dakika 50 saniye Precisely the committees that oversee industries where the has billions invested and where he can [music] use some privileged information. 7:56:00 7 saat 56 dakika Is political investment a good use of capital? The mathematics suggest yes 70 7:56:08 7 saat 56 dakika 8 saniye to 80 million represents less than 1% of the's net worth. The potential return if facets translate to favorable [music] 7:56:16 7 saat 56 dakika 16 saniye treatment for portfolio companies could be worth billions. Even with a 50% success rate, the expected value is positive by orders of magnitude. 7:56:28 7 saat 56 dakika 28 saniye Investment 70 to 80 million over 8 years. Potential value captured 15 to 30 7:56:35 7 saat 56 dakika 35 saniye billion across portfolio. Expected return 200 to 400 times invested capital 7:56:45 7 saat 56 dakika 45 saniye that rivals the best venture capital returns in history. Peter Theel is not playing politics. He is optimizing his portfolio. 7:56:58 7 saat 56 dakika 58 saniye Chapter 7. The final exit. 7:57:02 7 saat 57 dakika 2 saniye Peter Theal has spent his life betting on the future, building it, funding it, accelerating it. But there is one frontier he refuses to accept as fixed. 7:57:13 7 saat 57 dakika 13 saniye Death. To him, mortality is not destiny. 7:57:18 7 saat 57 dakika 18 saniye It is an engineering problem waiting for a breakthrough. Unlike every other system he has challenged, he believes this one too can be redesigned. 7:57:28 7 saat 57 dakika 28 saniye While others plan for retirement, Theel funds longevity labs. While governments plan for decades, he thinks in centuries. 7:57:38 7 saat 57 dakika 38 saniye If time is the ultimate [music] constraint on power, then extending life is the ultimate leverage. At the edge of 7:57:46 7 saat 57 dakika 46 saniye the world, he built a refuge. Far from political centers, far from social 7:57:52 7 saat 57 dakika 52 saniye unrest, close only to time. In Silicon Valley, there is a dark joke shared quietly among founders and investors. 7:58:02 7 saat 58 dakika 2 saniye How many billionaires does it take to buy a country? 7:58:07 7 saat 58 dakika 7 saniye Just one, if he is smart enough to get there first. 7:58:14 7 saat 58 dakika 14 saniye He invested in digital currencies that governments cannot print. In surveillance systems that see what 7:58:20 7 saat 58 dakika 20 saniye others cannot. In political candidates who might shape the rules. In technologies that might outlive biology 7:58:28 7 saat 58 dakika 28 saniye itself. Not to save the world, to outlast it. 7:58:38 7 saat 58 dakika 38 saniye What began as a contingency plan for a few has become an unspoken strategy among the ultra wealthy. 7:58:46 7 saat 58 dakika 46 saniye When the New Zealand citizenship story became public, one of Theo's closest peers, Samman, put it bluntly. 7:58:55 7 saat 58 dakika 55 saniye If things go really wrong, I'm flying to [music] Peter's place. 7:59:00 7 saat 59 dakika Some men try to make history. Peter Theel is trying to escape it. 7:59:07 7 saat 59 dakika 7 saniye And if the future breaks, he intends to be standing [music] somewhere it cannot reach. 8:00:41 8 saat 41 saniye Most people see this and think culture. 8:00:44 8 saat 44 saniye They see a charming eco-friendly tradition. 8:00:48 8 saat 48 saniye But look closer. This isn't just people liking to pedal. What you were watching is a highfrequency, low friction economic machine. 8:00:58 8 saat 58 saniye Ultimately, private car ownership is going to become obsolete. Cities are building for pedestrians. They're building for cycling. They're building for livability, not for cars. 8:01:08 8 saat 1 dakika 8 saniye The bike economy, the multi-billion dollar system of Amsterdam. 8:01:16 8 saat 1 dakika 16 saniye In Amsterdam, the bicycle isn't a toy. It is a critical urban infrastructure. 8:01:23 8 saat 1 dakika 23 saniye If this system failed today, the city's economy would collapse tomorrow. 8:01:30 8 saat 1 dakika 30 saniye For decades, the world has viewed Amsterdam through a romantic lens. But cities don't run on vibes. They run on 8:01:38 8 saat 1 dakika 38 saniye systems. And when a system moves hundreds of thousands of people every single day, it stops being a choice and 8:01:46 8 saat 1 dakika 46 saniye starts demanding three things. space, rules, and capital. 8:01:52 8 saat 1 dakika 52 saniye Research shows that the cycling system contributes benefits equivalent to roughly 3% [music] of the Netherlands GDP. 8:02:00 8 saat 2 dakika This isn't just green energy. It's hard cash saved in public health, reduced absenteeism at work, and most 8:02:08 8 saat 2 dakika 8 saniye importantly, [music] unlocked productivity. Every person on a bike is a person who isn't taking up 12 square 8:02:16 8 saat 2 dakika 16 saniye meters of public space with a car. That freed up space [music] allows for high value real estate, commerce, and 8:02:23 8 saat 2 dakika 23 saniye tourism. In economics, we call this optimization of land use. 8:02:32 8 saat 2 dakika 32 saniye But success created a crisis. By the 2010s, Amsterdam had a clutter problem. 8:02:39 8 saat 2 dakika 39 saniye Thousands of bikes were choking the streets. The solution, one of the most expensive [music] and daring engineering 8:02:47 8 saat 2 dakika 47 saniye projects in the city. They built a cathedral for 7,000 bicycles under the water. 8:02:55 8 saat 2 dakika 55 saniye It cost millions. From a traditional linear perspective, spending that much on free parking [music] seems insane. But from a circular 8:03:04 8 saat 3 dakika 4 saniye economy perspective, a model where Amsterdam is a [music] global leader with 30.6% circularity rate, it was a 8:03:11 8 saat 3 dakika 11 saniye mandatory investment. As we see in the latest urban governance reports, [music] planning isn't an option here. It's the only way to exist. 8:03:22 8 saat 3 dakika 22 saniye In this documentary, we are [music] going beyond the postcard. We will travel back to 1965 to see why the first 8:03:30 8 saat 3 dakika 30 saniye sharing economy experiment failed. We will use scientific GPS data to track the shadow economy [music] of the 80,000 bikes stolen every year. 8:03:40 8 saat 3 dakika 40 saniye And we will explore how Amsterdam is using the bicycle to become the world's [music] first 100% circular city by 8:03:48 8 saat 3 dakika 48 saniye 2050. This is the story of how a humble machine with two wheels became the backbone of a multi-billion dollar urban miracle. 8:04:02 8 saat 4 dakika 2 saniye To understand why Amsterdam spends €85 million on underwater parking today, we have to go back to a time when the city 8:04:11 8 saat 4 dakika 11 saniye almost lost its soul to the car, the 1960s. 8:04:21 8 saat 4 dakika 21 saniye As postwar prosperity grew, Amsterdam was being choked by [music] motor vehicles. 8:04:28 8 saat 4 dakika 28 saniye In response, a counterculture group called the Provos launched what would become the first bike sharing program in 8:04:35 8 saat 4 dakika 35 saniye history, the Vita Fien Plan or the white bike plan. 8:04:40 8 saat 4 dakika 40 saniye Their proposal was radical and purely 8:04:42 8 saat 4 dakika 42 saniye [music] 8:04:43 8 saat 4 dakika 43 saniye idealistic. Paint 20,000 bicycles white, leave them unlocked across the city, and let anyone use them for free. [music] 8:04:52 8 saat 4 dakika 52 saniye No keys, no coins, no owners. They viewed mobility as a public good, as essential and free as the air we 8:05:00 8 saat 5 dakika breathe. On paper, [music] it was a circular economy. Avon Plletra. In practice, it [music] was a disaster. 8:05:09 8 saat 5 dakika 9 saniye Within days, the system collapsed. Why? 8:05:12 8 saat 5 dakika 12 saniye Because the province ignored a fundamental principle of economics, 8:05:16 8 saat 5 dakika 16 saniye [music] 8:05:17 8 saat 5 dakika 17 saniye the tragedy of the commons. 8:05:39 8 saat 5 dakika 39 saniye for 8:05:56 8 saat 5 dakika 56 saniye without ownership or registration. 8:05:58 8 saat 5 dakika 58 saniye Public property quickly became nobody's property. In an unregulated system [music] with zero entry cost, the 8:06:06 8 saat 6 dakika 6 saniye incentive to maintain the asset disappears. Without locks or registration, public property quickly 8:06:12 8 saat 6 dakika 12 saniye became nobody's property. The police confiscated the bikes because they [music] invited theft and the citizens 8:06:20 8 saat 6 dakika 20 saniye driven by individual rationalism either took them home [music] or threw them into the canals. 8:06:27 8 saat 6 dakika 27 saniye The lesson was harsh. You cannot have a massive urban transit system [music] based solely on romanticism. 8:06:34 8 saat 6 dakika 34 saniye You need governance. However, the white bikes planted a seed. 8:06:42 8 saat 6 dakika 42 saniye It shifted the economic debate. The city realized that if they didn't want to spend billions on highways like Los 8:06:50 8 saat 6 dakika 50 saniye Angeles or London, they had to invest in a different kind of capital. Transition requires not just technology but a change in urban metabolism. 8:07:00 8 saat 7 dakika The failure of the white bikes taught [music] Amsterdam that the bicycle had to be integrated into the formal economy of the city, not as a rebel symbol, but as a regulated, taxed and planned asset. 8:07:14 8 saat 7 dakika 14 saniye Today, the free spirit of the white bikes only survives in one place, the Hoga Valuve National Park. But [music] 8:07:21 8 saat 7 dakika 21 saniye in the city, the white bike has been replaced by a sophisticated capital incentive model. We no longer trust in 8:07:29 8 saat 7 dakika 29 saniye the [music] goodness of the user. We trust in incentives. We move the tragedy of the commons to a system of managed 8:07:36 8 saat 7 dakika 36 saniye common pool resources. In economics, success can be as disruptive as failure. 8:07:43 8 saat 7 dakika 43 saniye By the late 2010s, Amsterdam was a victim of its own efficiency. With nearly 1 million bicycles in the city, 8:07:50 8 saat 7 dakika 50 saniye the urban surface had reached a breaking point. Every bridge, railing, and sidewalk was occupied by idle metal. 8:08:00 8 saat 8 dakika This wasn't just an aesthetic grievance. 8:08:02 8 saat 8 dakika 2 saniye It was an economic bottleneck. Thousands of parked bikes were clogging the city's arteries, [music] slowing down 200,000 daily commuters at 8:08:12 8 saat 8 dakika 12 saniye Central Station. In one of the world's most expensive real estate markets, free surface parking is a luxury that a functional city cannot [music] afford. 8:08:22 8 saat 8 dakika 22 saniye The opportunity cost of that space was becoming too high. To solve this, Amsterdam launched the entre, a massive 8:08:31 8 saat 8 dakika 31 saniye urban reconfiguration project. The crown jewel, the open haven underwater parking. 8:08:38 8 saat 8 dakika 38 saniye Consider that figure. spending [music] €60 million just to store 7,000 bicycles underwater. 8:08:46 8 saat 8 dakika 46 saniye To a traditional accountant, this looks like a massive sunk cost. But to an urban economist, it's a master stroke of 8:08:54 8 saat 8 dakika 54 saniye asset management. By moving 7,000 bikes beneath the water, the city performed open heart surgery on its central hub. 8:09:03 8 saat 9 dakika 3 saniye They reclaimed the surface, restoring the landscape to its 1900's aesthetic. 8:09:08 8 saat 9 dakika 8 saniye This isn't just about beauty. It's about maximizing pedestrian flow. A station that breathes and flows is a station 8:09:16 8 saat 9 dakika 16 saniye that generates higher economic value for the surrounding businesses. However, an 85 million euro asset must be managed 8:09:25 8 saat 9 dakika 25 saniye like a high performance logistics center. You cannot allow zombie bikes to occupy these slots indefinitely. 8:09:33 8 saat 9 dakika 33 saniye This is where the incentive structure comes into play. 8:09:37 8 saat 9 dakika 37 saniye The primary goal isn't profit, it's turnover. By offering the first 24 hours for free, the city subsidizes the daily 8:09:45 8 saat 9 dakika 45 saniye [music] workforce. But by charging a daily fee thereafter, they penalize long-term storage and abandonment. Using 8:09:54 8 saat 9 dakika 54 saniye advanced optical sensors, the city monitors idle inventory in real time, ensuring that these [music] 7,000 slots 8:10:02 8 saat 10 dakika 2 saniye remain a liquid asset for those who keep the economy moving. 8:10:08 8 saat 10 dakika 8 saniye Finally, we must consider the cost of friction. 8:10:21 8 saat 10 dakika 21 saniye Fore 8:10:49 8 saat 10 dakika 49 saniye in transport economics, every Second loss in a transfer is a loss in human capital and productivity. 8:10:56 8 saat 10 dakika 56 saniye This underwater facility connects directly to the [music] metro and train platforms. A commuter can transition 8:11:03 8 saat 11 dakika 3 saniye from their bicycle to their train seat in less than 2 [music] minutes, shielded from the elements. This level of intermodel synergy [music] 8:11:11 8 saat 11 dakika 11 saniye is exactly what makes Amsterdam's circular economy, currently at [music] a record 30.6% 6% circularity rate, a 8:11:19 8 saat 11 dakika 19 saniye functional reality rather than just a policy goal. 8:11:48 8 saat 11 dakika 48 saniye But this transition to a highly regulated system created its own set of problems. Because when you turn a 8:11:54 8 saat 11 dakika 54 saniye bicycle into a valuable economic asset, you create something else. A black market. In Amsterdam, [music] data 8:12:03 8 saat 12 dakika 3 saniye doesn't tell the whole story. While police record 11,000 thefts a year, the reality is closer to 80,000. 8:12:12 8 saat 12 dakika 12 saniye Most citizens don't report it. Cost of time is higher than the bike's value. 8:12:17 8 saat 12 dakika 17 saniye This creates a massive shadow market operating entirely outside the official GDP. Forget the myth of international bike smuggling rings. 8:12:28 8 saat 12 dakika 28 saniye A 2023 study tracking 100 bikes proved that stolen assets rarely leave the city. Instead, they feed a shadow 8:12:37 8 saat 12 dakika 37 saniye circular economy. Your stolen bike [music] is sold to a street dealer and then bought by your neighbor. It's a localized, untaxed, and [music] illegal closed loop. 8:12:49 8 saat 12 dakika 49 saniye High theft risk creates a market distortion. If you expect your bike to be stolen within months, you don't buy quality, [music] 8:12:57 8 saat 12 dakika 57 saniye you buy junk. This beta bike equilibrium keeps the city's transport fleet low quality and forces owners to spend more on locks than the bikes themselves. 8:13:09 8 saat 13 dakika 9 saniye These aren't victimless crimes. They are negative externalities that drain city [music] resources. Amsterdam's answer, 8:13:17 8 saat 13 dakika 17 saniye the Fiat depot. Since the city couldn't stop the theft, it decided to manage [music] the orphaned assets because in a 8:13:25 8 saat 13 dakika 25 saniye circular city, even a stolen bike is a [music] resource that must be managed to maintain the urban metabolism. 8:13:34 8 saat 13 dakika 34 saniye In a city with more bicycles than people, orphaned assets are an inevitability. 8:13:40 8 saat 13 dakika 40 saniye Every year, thousands of bikes are simply left behind. In economic terms, this is dead capital. They occupy 8:13:48 8 saat 13 dakika 48 saniye valuable public space, provide zero utility, and degrade the urban landscape. 8:13:54 8 saat 13 dakika 54 saniye According to official Amsterdam regulations, the city must intervene when private property interferes with public efficiency. 8:14:03 8 saat 14 dakika 3 saniye Whether is an improperly parked bike blocking an emergency exit or a wreck that is no longer functional, the 8:14:10 8 saat 14 dakika 10 saniye [music] municipality acts as the ultimate enforcer of spatial order. 8:14:17 8 saat 14 dakika 17 saniye All seized bicycles are transported to a central facility, the Fiat depot. This is a logistical powerhouse that manages 8:14:25 8 saat 14 dakika 25 saniye the city's lost capital. This isn't just a pound. [music] It's a sorting facility for the city's metal metabolism, the 8:14:33 8 saat 14 dakika 33 saniye retrieval. Owners have around 6 weeks to claim their bike for a fee, approximately €25. 8:14:41 8 saat 14 dakika 41 saniye This fee doesn't cover the full operational cost, but it serves as a user pays tax to discourage abandonment. 8:14:49 8 saat 14 dakika 49 saniye If your bicycle was removed from a city parking facility, you will also pay €33.75 8:14:56 8 saat 14 dakika 56 saniye parking cost. The sorting only about 25% of bikes are ever reclaimed. The rest they are classified as waste or asset. 8:15:06 8 saat 15 dakika 6 saniye Here is where [music] the circular economy strategy 2020 to 2025 becomes tangible. Amsterdam aims to reduce the 8:15:15 8 saat 15 dakika 15 saniye use of new raw materials by 50% by 2030. 8:15:20 8 saat 15 dakika 20 saniye The Fiat's depot doesn't just scrap everything. Refurbishment. 8:15:26 8 saat 15 dakika 26 saniye Bikes in decent condition are sold to social enterprises or secondhand shops. 8:15:31 8 saat 15 dakika 31 saniye They are recirculated into the economy at a low price point, providing affordable mobility for lowincome residents. 8:15:39 8 saat 15 dakika 39 saniye Education. 8:15:41 8 saat 15 dakika 41 saniye Many are used in vocational training programs, turning junk, into a teaching tool for future mechanics. Raw 8:15:48 8 saat 15 dakika 48 saniye materials, the unsalvageable ones, are sold as highquality scrap metal, [music] feeding back into the industrial cycle. 8:15:58 8 saat 15 dakika 58 saniye What we see here is a complete life cycle management of a transport mode. 8:16:03 8 saat 16 dakika 3 saniye The biggest challenge for circular cities is the lack of effective governance mechanisms. Amsterdam succeeds because it treats the bicycle 8:16:12 8 saat 16 dakika 12 saniye as a public utility. From the multi-million euro investment under the water to the scrap metal in the harbor, 8:16:19 8 saat 16 dakika 19 saniye the city manages the entire cradletograve cycle of the bicycle. 8:16:28 8 saat 16 dakika 28 saniye Amsterdam is no longer just building bike lanes. It is building a new economic DNA. The city has set a target 8:16:36 8 saat 16 dakika 36 saniye that many economists call impossible to be 100% circular by 2050. 8:16:45 8 saat 16 dakika 45 saniye This means that by midentury, every gram of steel in a bicycle and every stone in a bridge must stay within the economic loop. 8:16:55 8 saat 16 dakika 55 saniye The take, make, waste model will be extinct. For Amsterdam, the bicycle is the alpha product. The test case for how 8:17:03 8 saat 17 dakika 3 saniye a city can move, consume, and recycle without depleting the planet's capital. 8:17:10 8 saat 17 dakika 10 saniye To reach 100% circularity, the concept of private ownership is being challenged by a more efficient model, product as a 8:17:18 8 saat 17 dakika 18 saniye service. You don't buy the bike, you rent the mobility. 8:17:23 8 saat 17 dakika 23 saniye So we talk a lot about ownership as a service, but it's this idea of, you know, something as a service. So in our case, bike as a service. It's all of the 8:17:32 8 saat 17 dakika 32 saniye benefits of ownership, but none of the drawbacks. So none of having to deal with the maintenance or or any of the things that come with actually owning something. 8:17:40 8 saat 17 dakika 40 saniye Economically, this aligns the incentives of the producer and the consumer. If the bike breaks, it's the company's problem, 8:17:48 8 saat 17 dakika 48 saniye not yours. by centralizing all of that maintenance. Obviously, we cut cost significantly. We cut [music] waste significantly. Um, but for the 8:17:56 8 saat 17 dakika 56 saniye individual user, um, they have nothing to worry about. You know, as a subscriber, you get all of your maintenance. So, we come and do preventative maintenance. So, first of 8:18:05 8 saat 18 dakika 5 saniye all, that obviously reduced the cost um, overall, not so much to the end user, but the cost of the business. Um, that prevents breakdowns and things like 8:18:13 8 saat 18 dakika 13 saniye that. But in the end, if you think about um the cost of time, the cost of effort, um maybe you don't even know how to 8:18:20 8 saat 18 dakika 20 saniye maintain your own bike. Um having a service that does all of that for you is just a a matter of convenience. 8:18:26 8 saat 18 dakika 26 saniye This forces manufacturers to design for durability and modularity, the core pillars of this circular economy. When 8:18:34 8 saat 18 dakika 34 saniye the city manages the flow and private companies manage the maintenance, the shadow economy of theft we saw in act 8:18:42 8 saat 18 dakika 42 saniye three begins to shrink. So if you subscribe to a bike from Clover and your bike gets stolen, first of all, we actually probably will notice that it 8:18:49 8 saat 18 dakika 49 saniye got stolen maybe even before you did because we have GPS on all the bikes. 8:18:53 8 saat 18 dakika 53 saniye [music] Um, but if it does get stolen, you use our WhatsApp chat. You basically send us a message and we come and bring you a new bike immediately. Why steal a 8:19:02 8 saat 19 dakika 2 saniye bike that is tracked, branded, and has no resale value in a subscription-based market? 8:19:09 8 saat 19 dakika 9 saniye So, what is the final return on investment? Let's look at the triple bottom line. Public health. By avoiding 8:19:17 8 saat 19 dakika 17 saniye 11,000 deaths annually through active transport, [music] the Dutch economy saves 19 billion in health care costs. 8:19:26 8 saat 19 dakika 26 saniye Urban density. By utilizing underwater parking and vertical depots, Amsterdam maintains a population density that 8:19:34 8 saat 19 dakika 34 saniye would be impossible with cars, [music] keeping real estate productivity at peak levels. 8:19:40 8 saat 19 dakika 40 saniye Resource independence by reclaiming metal from the Fiats depot. The city insulates itself from [music] global 8:19:47 8 saat 19 dakika 47 saniye commodity price shocks. This is a sustainable urban metabolism. The city isn't just a place where people live. 8:19:55 8 saat 19 dakika 55 saniye It's a living organism that processes resources with maximum efficiency. 8:20:01 8 saat 20 dakika 1 saniye Amsterdam's success has sent a clear message to the rest of the continent. 8:20:06 8 saat 20 dakika 6 saniye Spatial efficiency is the only way forward for the modern metropolis. 8:20:11 8 saat 20 dakika 11 saniye Across Europe, the bicycle has moved from being a leisure tool to a cornerstone of urban recovery and economic resilience. 8:20:20 8 saat 20 dakika 20 saniye In Paris, a city once defined by [music] its congestion, the plan is investing hundreds of millions to become 100% 8:20:28 8 saat 20 dakika 28 saniye cyclable. In Barcelona, the super blocks are reclaiming entire intersections from cars to create human ccentric lungs. 8:20:38 8 saat 20 dakika 38 saniye These aren't just environmental projects, [music] they are market corrections. 8:20:43 8 saat 20 dakika 43 saniye The cities are betting that a quieter, cleaner, and more agile urban center will attract more talent, more tourism, and higher property values. 8:20:53 8 saat 20 dakika 53 saniye From the cycle superighways of London to the industrial hubs of Germany, the economic logic is consistent. Replacing 8:21:02 8 saat 21 dakika 2 saniye a 1 and 1/2 ton vehicle with a 15 kg machine reduces the cost of maintenance for the city and increases the productivity of the citizen. 8:21:12 8 saat 21 dakika 12 saniye But while northern capitals have the advantage of decades of infrastructure, the real test is happening in the south. 8:21:19 8 saat 21 dakika 19 saniye In the Mediterranean, where the street is a social space and the sun is a constant resource, a new leader is emerging. A city that has used the 8:21:29 8 saat 21 dakika 29 saniye Amsterdam blueprint to transform itself at record speed. 8:21:36 8 saat 21 dakika 36 saniye [music] 8:21:47 8 saat 21 dakika 47 saniye forgo. 8:22:37 8 saat 22 dakika 37 saniye [music] 8:22:38 8 saat 22 dakika 38 saniye If Amsterdam is the blueprint, Valencia is the laboratory. 8:22:45 8 saat 22 dakika 45 saniye Okay. 8:22:57 8 saat 22 dakika 57 saniye Not the fact 8:23:28 8 saat 23 dakika 28 saniye In less than a decade, this Mediterranean city has transitioned from a car ccentric capital to a global [music] reference in urban metabolism. 8:23:39 8 saat 23 dakika 39 saniye [music] 8:24:00 8 saat 24 dakika Valencia's transformation wasn't a matter of vibes or romanticism. It was a calculated investment in spatial efficiency. 8:24:09 8 saat 24 dakika 9 saniye I think attracting top global talent means that you need to have a vibrant, livable city. And I think most young [music] people um particularly who are 8:24:17 8 saat 24 dakika 17 saniye coming into the workforce now are looking for ways to get around a city that doesn't rely on public transit. 8:24:23 8 saat 24 dakika 23 saniye They [music] don't want to own a car um because car ownership is a total burden. 8:24:27 8 saat 24 dakika 27 saniye Having to find parking, insurance, cost of the car, all of that. 8:24:31 8 saat 24 dakika 31 saniye [music] 8:24:38 8 saat 24 dakika 38 saniye lot of reasons to attract top talent, just makes it that much better. Um, cycling is a preferred way to get around in Valencia, we're number seven in the world for cycling to work, for example. 8:24:48 8 saat 24 dakika 48 saniye So adding a layer of an easy subscription ebike service to that just [music] again attracts even more um top talent to the city. 8:24:57 8 saat 24 dakika 57 saniye By implementing the Anilo cichlista, the city has reclaimed high value public space to boost local commerce and reduce the toxic liability [music] of the car. 8:25:07 8 saat 25 dakika 7 saniye It's important to remember that um often times with cars, although they can fit multiple people, most of the time it's one person per one car. So when we're 8:25:14 8 saat 25 dakika 14 saniye asking about, you know, 10 bikes versus one car, we're essentially saying 10 people versus one person. So we have a 10x multiplier on essentially everything 8:25:22 8 saat 25 dakika 22 saniye that's happening on that street. Whether that be visits to the businesses, whether that be transactions and purchases, everything gets that 10x multiplier and increases revenue for the whole street. 8:25:30 8 saat 25 dakika 30 saniye In economics, this is the optimization of land use. The same principle that drove Amsterdam to build under its canals. 8:25:38 8 saat 25 dakika 38 saniye If I'm cycling and I pass by, for example, a bakery, I go I smell that bakery, I go, "Oh, you know what? Maybe I'm going to stop in, try something one 8:25:46 8 saat 25 dakika 46 saniye of those products." Um, you know, essentially become a patron of that business. Whereas if I'm passing by in a car, there's no chance of that happening. And the other benefit is um 8:25:54 8 saat 25 dakika 54 saniye car parking also has this sort of psychological effect on the streets and the people that live there. Car parking makes the space feel a lot more closed 8:26:01 8 saat 26 dakika 1 saniye in and a lot more cramped than bike parking, which keeps the space very nice and open. 8:26:06 8 saat 26 dakika 6 saniye Emerging businesses are shifting the market from ownership to usership. 8:26:10 8 saat 26 dakika 10 saniye You know, our customers, they depend on their bikes as a reliable way to get around. And so we use an ownership as a service model. So [music] 8:26:18 8 saat 26 dakika 18 saniye instead of owning the asset yourself, um you subscribe to it from us. And we think that's what customers need in terms of reliable day-to-day 8:26:25 8 saat 26 dakika 25 saniye transportation. If you [music] look at something like Lime or Valon BC, they will have that idle asset problem. Um and certainly ownership obviously the 8:26:34 8 saat 26 dakika 34 saniye same thing. But with us, you know, handling maintenance, battery swapping, theft protection, insurance, all of that. Um and yet still having access to 8:26:43 8 saat 26 dakika 43 saniye the bike anytime you want. It's your bike. [music] Subscription models like swap Fiats, which already dominate the Dutch market, are landing in Valencia. 8:26:52 8 saat 26 dakika 52 saniye These companies treat the bike as a service, covering all maintenance and repairs for a monthly fee. 8:26:58 8 saat 26 dakika 58 saniye Ownership isn't necessarily a bad investment, but I think um most consumers are moving away from owning things. You know, people are leasing their cars, people are, you know, more 8:27:07 8 saat 27 dakika 7 saniye and more renting their homes. Um so for us, a subscription model made sense. 8:27:11 8 saat 27 dakika 11 saniye That and affordability. This eliminates the fear of theft and long-term depreciation, turning the bicycle into a 8:27:19 8 saat 27 dakika 19 saniye predictable low- friction utility for the modern worker. The impact extends to logistics. In Valencia's historic 8:27:27 8 saat 27 dakika 27 saniye center, where large trucks are increasingly restricted, last mile delivery by cargo bike is becoming the 8:27:34 8 saat 27 dakika 34 saniye gold standard for efficiency. We are witnessing the birth of micro hubs, small urban distribution centers that 8:27:42 8 saat 27 dakika 42 saniye allow for zero emission high-speed delivery in high density zones. From the massive underwater investments in 8:27:49 8 saat 27 dakika 49 saniye Amsterdam to the emerging subscription models in Valencia, the message is clear. The bicycle is no longer just a 8:27:57 8 saat 27 dakika 57 saniye hobby. It is a financial instrument and a spatial optimizer. 8:28:02 8 saat 28 dakika 2 saniye You know, when we were speaking to consumers about how we could get them to switch from a car to an ebike, it was all about convenience. So, it was about 8:28:10 8 saat 28 dakika 10 saniye this idea that, you know, with a car, you can go point A to point B whenever you want. You're not relying on public transit or any of those things. But if 8:28:18 8 saat 28 dakika 18 saniye you need gas, you go to a gas station, it takes 5 minutes, and you're back on your way. People perceived ebikes [music] as inconvenient because, oh, what if I forget to charge the battery? 8:28:27 8 saat 28 dakika 27 saniye Then it's just kind of a very heavy paper weight. Um, but if we eliminate that need for charging and people can just come and collect a charge battery 8:28:35 8 saat 28 dakika 35 saniye anytime, um, it helps break that barrier to entry for getting out of a car. By integrating these new business models 8:28:42 8 saat 28 dakika 42 saniye with public planning, [music] Valencia is securing its place in the 21st century economy. Proving that a dense functional city isn't just a choice, it's a competitive necessity. 8:28:54 8 saat 28 dakika 54 saniye Ultimately, private car ownership is going to become obsolete. Cities are building for pedestrians. They're building for cycling. They're building for livability, not for cars. 8:29:04 8 saat 29 dakika 4 saniye Throughout this documentary, we have seen the gears of a massive economic machine. But there is a final myth we 8:29:11 8 saat 29 dakika 11 saniye must dismantle. The idea that cities like Amsterdam or Valencia look like this because their citizens are simply 8:29:19 8 saat 29 dakika 19 saniye different. History tells a different story. In the 1970s, Amsterdam was on the verge of becoming another car ccentric congested metropolis. 8:29:30 8 saat 29 dakika 30 saniye The transition we see today wasn't a natural evolution of culture. It was a hostile takeover of urban space by a 8:29:38 8 saat 29 dakika 38 saniye policy and planning. When a city reaches a certain density, [music] freedom of choice in transport becomes a 8:29:45 8 saat 29 dakika 45 saniye mathematical impossibility. [music] If everyone chooses a car, no one moves. 8:29:51 8 saat 29 dakika 51 saniye In this high stakes environment, planning is not an option. It is the only way to survive. What is the 8:29:58 8 saat 29 dakika 58 saniye ultimate harvest of this planning? It is the 3% GDP boost we mentioned at the start. But it's also found [music] in 8:30:06 8 saat 30 dakika 6 saniye the margins, the fiscal savings by avoiding the need for multi-billion euro highway expansions [music] and massive health 8:30:14 8 saat 30 dakika 14 saniye care costs related to sedentary lifestyles. 8:30:18 8 saat 30 dakika 18 saniye The resilience factor by creating a circular metropolis that can process its own waste at the Kruu depot and turn it back into capital. 8:30:28 8 saat 30 dakika 28 saniye The talent magnet [music] in the global war for talent. Highly skilled workers choose cities based on livability. Amsterdam's bicycle 8:30:37 8 saat 30 dakika 37 saniye infrastructure is its most effective [music] recruitment tool. We started this journey looking at a simple machine, two wheels and a frame. But as 8:30:47 8 saat 30 dakika 47 saniye we've seen, the bicycle in Amsterdam is much more than a transport mode. It is a financial instrument. It [music] is a 8:30:54 8 saat 30 dakika 54 saniye spatial optimizer. It is the invisible engine that allows a medieval city to function as a 21st century economic powerhouse. 8:31:05 8 saat 31 dakika 5 saniye The €85 million spent on underwater tunnels, the complex logistics of the Kruquest Depo, or the new Mediterranean 8:31:13 8 saat 31 dakika 13 saniye bike lanes are not costs. They are investments in [music] resilience. 8:31:20 8 saat 31 dakika 20 saniye In a world of rising energy prices and shrinking urban space, the Amsterdam model offers a glimpse into [music] the future. It proves that the most 8:31:29 8 saat 31 dakika 29 saniye sophisticated technology isn't always a new gadget. Sometimes it's the perfect integration of an old idea into a new circular world. 8:32:38 8 saat 32 dakika 38 saniye Imagine 8:32:57 8 saat 32 dakika 57 saniye for a moment, what if your Bitcoin holdings could purchase more than just everyday items like coffee or the latest gadgets? What if that digital currency 8:33:06 8 saat 33 dakika 6 saniye sitting in your wallet could actually buy you a house or perhaps even an entire [music] commercial building? 8:33:24 8 saat 33 dakika 24 saniye Welcome to the fascinating and rapidly evolving world of crypto real estate, [music] where digital assets are being transformed into tangible property. 8:33:39 8 saat 33 dakika 39 saniye Today, we're taking a deep dive into the revolutionary intersection of cryptocurrency and property ownership, examining in detail how Bitcoin [music] 8:33:46 8 saat 33 dakika 46 saniye is successfully transforming what were once purely digital coins into tangible physical real estate investments. 8:33:53 8 saat 33 dakika 53 saniye Whether you're an experienced crypto [music] investor looking to diversify your portfolio or simply someone who's curious about emerging trends in 8:34:00 8 saat 34 dakika property markets, this is an in-depth look at how the landscape and future of real estate transactions is fundamentally evolving and changing before our eyes. 8:34:10 8 saat 34 dakika 10 saniye The financial world is in constant transformation, but in this decade, [music] digitalization has accelerated that change faster than anyone imagined. 8:34:20 8 saat 34 dakika 20 saniye Today, money, investments, and assets flow [music] through codes silent, transparent, and borderless. 8:34:26 8 saat 34 dakika 26 saniye Cryptocurrencies led by Bitcoin mark the beginning of a new era. They shook the foundations of the global financial [music] system, sparking both excitement 8:34:35 8 saat 34 dakika 35 saniye and skepticism. Yet, behind that phenomenon [music] emerged something even deeper. Tokenization. 8:34:46 8 saat 34 dakika 46 saniye Contraos. 8:35:05 8 saat 35 dakika 5 saniye Real world assets. Forech. 8:35:41 8 saat 35 dakika 41 saniye tokenization brings. So it's the most suitable, most modern ledger technology uh ideal for modernizing capital markets. The idea is simple, the impact enormous. 8:35:50 8 saat 35 dakika 50 saniye Each token represents a fraction of an asset, a share, a bond, a property, or even a work of art, all recorded on a blockchain, a global tamper proof ledger. 8:36:03 8 saat 36 dakika 3 saniye [music] 8:36:05 8 saat 36 dakika 5 saniye Okay. 8:36:19 8 saat 36 dakika 19 saniye Smart contracts. 8:36:33 8 saat 36 dakika 33 saniye bureau. 8:36:37 8 saat 36 dakika 37 saniye We believe the next step going forward will be the tokenization of financial assets and that means every stock, every bond will have its own basically QIP. 8:36:48 8 saat 36 dakika 48 saniye It'll be on one general ledger. [music] In other words, a token isn't just an asset. It's a digital entry in a new kind of ledger that is rewriting how capital markets keep their books. 8:36:59 8 saat 36 dakika 59 saniye Investment in tokenized real estates 8:37:01 8 saat 37 dakika 1 saniye [music] 8:37:01 8 saat 37 dakika 1 saniye represents one of the most recent advancements in the property industry. 8:37:05 8 saat 37 dakika 5 saniye Tokenization [music] enables houses and apartments to be divided and sold and numerous smaller units. 8:37:20 8 saat 37 dakika 20 saniye Foreom 8:37:52 8 saat 37 dakika 52 saniye [music] 8:38:00 8 saat 38 dakika small programs act like a bridge between a property and online trading platform. 8:38:05 8 saat 38 dakika 5 saniye Hence, tokens create a digital representation of a property facilitating its [music] digital transfer. 8:38:14 8 saat 38 dakika 14 saniye The process of purchasing a property is still associated with significant bureaucracy, lengthy procedures, and subsequent [music] high costs. 8:38:22 8 saat 38 dakika 22 saniye So what exactly is crypto real estate? 8:38:26 8 saat 38 dakika 26 saniye At its core, the term refers to any real estate transaction where cryptocurrency plays a major role either as a direct 8:38:33 8 saat 38 dakika 33 saniye form of payment, a converted asset, or collateral for purchasing property. 8:38:43 8 saat 38 dakika 43 saniye real estate, Bitcoins. 8:39:07 8 saat 39 dakika 7 saniye Crypto reference loans. 8:39:31 8 saat 39 dakika 31 saniye But the concept goes even deeper than that. Crypto real estate includes buying a home directly with Bitcoin or other cryptocurrencies, using stable coins 8:39:40 8 saat 39 dakika 40 saniye like USDT or USDC for a more stable purchase, converting crypto into fiat at closing, taking out loans backed by 8:39:48 8 saat 39 dakika 48 saniye cryptocurrency to purchase real property, tokenized real estate where ownership is fractionalized into digital token, blockchain based property records, and smart contract driven transactions. 8:40:12 8 saat 40 dakika 12 saniye Stable coins. 8:40:28 8 saat 40 dakika 28 saniye Stable coins. 8:40:41 8 saat 40 dakika 41 saniye EMT. E A R T 8:40:54 8 saat 40 dakika 54 saniye U USDT USDC 8:41:18 8 saat 41 dakika 18 saniye US stable coinry. 8:41:40 8 saat 41 dakika 40 saniye for 8:42:09 8 saat 42 dakika 9 saniye example. 8:42:21 8 saat 42 dakika 21 saniye It's an evolution in how value moves around the world. And for the first time, digital wealth is becoming a direct pathway to physical ownership. 8:42:33 8 saat 42 dakika 33 saniye To understand how we arrived at this moment, we need to step back and look at the timeline. Bitcoin launched in 2009 as a peer-to-peer digital alternative to 8:42:42 8 saat 42 dakika 42 saniye money. In its early years, the idea of using Bitcoin to buy real estate was laughable. But Bitcoin grew, first crossing $1, then a 100, then a 8:42:50 8 saat 42 dakika 50 saniye thousand, then tens of thousands. A new wave of wealth was created. Suddenly, early adopters who once bought pizza 8:42:57 8 saat 42 dakika 57 saniye with Bitcoin now had enough digital value to buy entire homes, and sellers began paying attention. The first public 8:43:05 8 saat 43 dakika 5 saniye record of a property purchased fully in Bitcoin. and dates back to 2017. From there, the trend spread to luxury 8:43:11 8 saat 43 dakika 11 saniye markets. Miami, Los Angeles, New York, Dubai, and London. Developers began marketing properties specifically to 8:43:18 8 saat 43 dakika 18 saniye crypto buyers. Brokers started specializing in crypto transactions. Escrow companies adapted. 8:43:26 8 saat 43 dakika 26 saniye Even governments began studying blockchainbased property registries. 8:43:31 8 saat 43 dakika 31 saniye Buying real estate with Bitcoin isn't science fiction. Some sellers now accept crypto directly, while others work through brokers who convert Bitcoin into 8:43:40 8 saat 43 dakika 40 saniye local currency. The process is faster, borderless, and sometimes even tax efficient if you know the rules. Things 8:43:48 8 saat 43 dakika 48 saniye that sounded impossible in 2010 became normal by 2020. And now in the 2020s, cryptocurrency is becoming a serious player in global [music] real estate. 8:43:57 8 saat 43 dakika 57 saniye The crypto boom has created a new class of investors. High- netw worth individuals [music] want to diversify and real estate is a safe tangible 8:44:06 8 saat 44 dakika 6 saniye asset. From luxury homes in Miami to condos in Dubai, Bitcoin buyers are making their mark. Let's look at a few 8:44:13 8 saat 44 dakika 13 saniye real world examples to understand how [music] crypto real estate works in practice. Case study one. In 2021, a 8:44:20 8 saat 44 dakika 20 saniye luxury penthouse at Arte by Antonio Satario in Surfside, Florida made history. The property sold for $22.5 8:44:28 8 saat 44 dakika 28 saniye million, paid entirely in cryptocurrency. The largest publicly known real estate transaction completed using digital assets at the time. A 8:44:37 8 saat 44 dakika 37 saniye developer's decision to accept cryptocurrency had paid off. The sale came just weeks after the developer announced it would begin accepting 8:44:45 8 saat 44 dakika 45 saniye cryptocurrency payments through a partnership [music] with blockchain platform Solid Block. According to Forbes, the deal demonstrated that crypto was no longer just a speculative 8:44:54 8 saat 44 dakika 54 saniye asset. It had become a viable method for purchasing high-end real estate. Case study 2. In Dubai, one of the earliest 8:45:02 8 saat 45 dakika 2 saniye large-scale experiments with crypto real estate unfolded at Aston Plaza and residences located in Dubai Science 8:45:09 8 saat 45 dakika 9 saniye Park. Marketed as one of the first major developments in the region to accept Bitcoin. The project offered [music] apartments priced directly in cryptocurrency. 8:45:19 8 saat 45 dakika 19 saniye Buyers were able to commit funds using Bitcoin, capturing global attention. But the story also revealed the risks of 8:45:25 8 saat 45 dakika 25 saniye innovation. Originally advertised as a $325 million development. The project later stalled and its completion became 8:45:34 8 saat 45 dakika 34 saniye uncertain. While crypto payments were accepted, it remains unclear whether all buyers ultimately received finished 8:45:41 8 saat 45 dakika 41 saniye properties. The case highlighted both the promise and the pitfalls of early crypto adoption [music] real estate. 8:45:48 8 saat 45 dakika 48 saniye Case study three. In 2025, Spain recorded one [music] of its first officially reported property sales completed with Bitcoin. A property in 8:45:57 8 saat 45 dakika 57 saniye Madrid valued at approximately 1.5 million of euros was purchased by an international buyer using Bitcoin. The transaction followed standard real 8:46:06 8 saat 46 dakika 6 saniye estate procedures, including escrow, legal compliance, and the conversion of crypto into euros for the seller. It 8:46:13 8 saat 46 dakika 13 saniye marked a significant milestone showing that cryptocurrency [music] could integrate into traditional real estate systems even in highly regulated European markets. Case [music] study 4. 8:46:23 8 saat 46 dakika 23 saniye In the United States, crypto adoption hasn't been limited to coastal tech hubs. [music] An agent with Safabis International Realy in Delaware reported 8:46:32 8 saat 46 dakika 32 saniye selling a luxury property for $175 million paid in Bitcoin. Believed to be one of the state's first major real 8:46:40 8 saat 46 dakika 40 saniye estate transactions involving cryptocurrency, [music] the sale was widely publicized as a local milestone, signaling that crypto real estate was beginning to reach 8:46:48 8 saat 46 dakika 48 saniye beyond niche markets and [music] into everyday property transactions. 8:46:55 8 saat 46 dakika 55 saniye Genius Act. [music] 8:47:14 8 saat 47 dakika 14 saniye daughter. 8:47:28 8 saat 47 dakika 28 saniye [music] 8:47:53 8 saat 47 dakika 53 saniye Maximum. 8:48:46 8 saat 48 dakika 46 saniye Taken together, these cases tell a larger story. one of experimentation, success, setbacks, and growing legitimacy. Crypto real estate is no 8:48:55 8 saat 48 dakika 55 saniye longer hypothetical. It's happening transaction by transaction across the globe. But it's not all smooth sailing. 8:49:03 8 saat 49 dakika 3 saniye Crypto's value can be volatile. 8:49:05 8 saat 49 dakika 5 saniye Regulations vary by country, and tax implications can be tricky. First, volatility. Bitcoin and other 8:49:12 8 saat 49 dakika 12 saniye cryptocurrencies can move dramatically, sometimes losing or gaining a third of their value in weeks. for buyers who convert at closing. Rapid swings can erase gains or spike costs and hours. 8:49:24 8 saat 49 dakika 24 saniye Second, transaction mechanics and title. 8:49:27 8 saat 49 dakika 27 saniye Even when a seller accepts crypto, most governments and land registries require deeds to be issued in the local currency. That usually means an 8:49:35 8 saat 49 dakika 35 saniye intermediary converts crypto to fiat before the legal title is registered, adding counterparty risk and an extra step that can delay and complicate 8:49:43 8 saat 49 dakika 43 saniye settlements. Third, taxes. In many jurisdictions, authorities treat crypto as property, not currency, which makes nearly every transfer a taxable event. 8:49:52 8 saat 49 dakika 52 saniye That includes sales, exchanges, and sometimes even payments for goods or services. Buyers and sellers must track cost basis, gains, and report the 8:50:00 8 saat 50 dakika transactions accurately or face audits and penalties. Fourth, lending and counterparty risk. Cryptoback lending exploded in the previous market cycle, 8:50:09 8 saat 50 dakika 9 saniye but it ended with high-profile collapses and bankruptcies. When platforms fail, borrowers and depositors can lose access to funds. Collateral can be liquidated 8:50:17 8 saat 50 dakika 17 saniye at a loss and promise liquidity disappears, a danger for anyone relying on thirdparty services to bridge crypto and property purchases. 8:50:24 8 saat 50 dakika 24 saniye Fifth, compliance and anti-moneyaundering rules. Regulators and global bodies have tightened rules around virtual assets to prevent illicit 8:50:31 8 saat 50 dakika 31 saniye flows. Real estate transactions are high on that list, meaning additional KYC, source of fund checks, and reporting requirements. Failure to meet these 8:50:40 8 saat 50 dakika 40 saniye standards can stall a sale, trigger investigations, or expose participants to legal liability. Sixth, operational 8:50:47 8 saat 50 dakika 47 saniye and technical risk. Crypto [music] transactions are irreversible. A single wrong character in a wallet address or a fishing attack on an email with wiring 8:50:54 8 saat 50 dakika 54 saniye instructions can send millions to the wrong place, and there's no bank to reverse the transfer. Seven, technology risk, smart contracts, tokenization, and 8:51:02 8 saat 51 dakika 2 saniye new platforms bring innovation, but also software bugs and design flaws. A poorly written smart contract or an unodudited tokenization platform can freeze assets, 8:51:11 8 saat 51 dakika 11 saniye misallocate ownership shares or enable exploits. Finally, market [music] and reputational risk. Developers and brokers who accept crypto can attract 8:51:19 8 saat 51 dakika 19 saniye new buyers, but they also take on greater scrutiny, regulatory compliance burdens, and the risk that projects [music] promoted with crypto funding may underdel, stall, or become entangled in 8:51:28 8 saat 51 dakika 28 saniye legal disputes. In short, crypto can speed and globalize property deals, but it also layers on volatility, regulatory 8:51:36 8 saat 51 dakika 36 saniye complexity, and new failure modes. For buyers, sellers, and advisers, the lesson is clear. Proceed with rigorous legal counsel, hardened custody practices, and transparent compliance. 8:51:47 8 saat 51 dakika 47 saniye The opportunity is real, but so are the pitfalls. 8:52:11 8 saat 52 dakika 11 saniye Still, the opportunities are huge. A new generation of buyers is turning digital value into physical assets. [music] For many, Bitcoin isn't just a currency. 8:52:21 8 saat 52 dakika 21 saniye It's a gateway to ownership. 8:52:24 8 saat 52 dakika 24 saniye One of the biggest shifts is tokenization. Instead of buying an entire building, investors can [music] now purchase fractional ownership 8:52:31 8 saat 52 dakika 31 saniye through blockchainbased tokens. This lowers the barrier to entry, allowing smaller investors to access real estate markets [music] that were once reserved for institutions and the ultra wealthy. 8:52:45 8 saat 52 dakika 45 saniye [music] 8:52:49 8 saat 52 dakika 49 saniye forction. 8:52:54 8 saat 52 dakika 54 saniye [music] 8:53:03 8 saat 53 dakika 3 saniye [music] 8:53:27 8 saat 53 dakika 27 saniye Tokenization also brings liquidity to an industry that has traditionally been slow and illquid. Real estate 8:53:35 8 saat 53 dakika 35 saniye transactions can take months. Tokenized shares can potentially [music] be transferred in minutes. Crypto is also reshaping crossber real estate. 8:53:44 8 saat 53 dakika 44 saniye International buyers often face currency [music] controls, wire delays, and banking restrictions. Cryptocurrency allows capital to move globally with 8:53:52 8 saat 53 dakika 52 saniye fewer friction [music] points, opening markets to buyers who were previously locked out. As a result, cities that embrace crypto-friendly regulations are attracting global capital faster. 8:54:01 8 saat 54 dakika 1 saniye Developers are responding by marketing properties directly to crypto holders, not as a novelty, but as a strategy. 8:54:08 8 saat 54 dakika 8 saniye Governments are also exploring blockchain for land registries [music] and property records. Immutable ledgers can reduce disputes, prevent title 8:54:15 8 saat 54 dakika 15 saniye fraud, and provide permanent verifiable ownership history, especially in regions where property rights are difficult to enforce. This isn't a complete replacement of traditional real estate. 8:54:25 8 saat 54 dakika 25 saniye It's a transformation. Crypto doesn't eliminate the fundamentals. Location, demand, and due diligence still matter, but [music] it changes how value moves, 8:54:34 8 saat 54 dakika 34 saniye how quickly deals happen, and who gets access. So, what does all of this mean for you as an investor or future home buyer? It means new opportunities are 8:54:41 8 saat 54 dakika 41 saniye emerging. Opportunities [music] to leverage your crypto holdings. 8:54:45 8 saat 54 dakika 45 saniye Opportunities to participate in international markets more easily. 8:54:49 8 saat 54 dakika 49 saniye Opportunities [music] to acquire property faster and more efficiently. 8:54:58 8 saat 54 dakika 58 saniye [music] 8:55:01 8 saat 55 dakika 1 saniye for 8:55:12 8 saat 55 dakika 12 saniye [music] 8:55:31 8 saat 55 dakika 31 saniye Fore 8:55:41 8 saat 55 dakika 41 saniye [music] 8:55:45 8 saat 55 dakika 45 saniye real estate 8:55:49 8 saat 55 dakika 49 saniye [music] 8:55:54 8 saat 55 dakika 54 saniye system. [music] Fore 8:56:01 8 saat 56 dakika 1 saniye [music] 8:56:25 8 saat 56 dakika 25 saniye real estate. [snorts] But like any emerging [music] space, 8:56:37 8 saat 56 dakika 37 saniye education is key. Working with crypto-friendly agents, attorneys, [music] and escrow companies is essential. 8:56:44 8 saat 56 dakika 44 saniye Understanding your local regulations is crucial, and ensuring the security of your crypto wallet is absolutely non-negotiable. 8:56:55 8 saat 56 dakika 55 saniye [music] 8:56:57 8 saat 56 dakika 57 saniye for 8:57:03 8 saat 57 dakika 3 saniye [music] 8:57:04 8 saat 57 dakika 4 saniye sophistic. Finan. 8:57:13 8 saat 57 dakika 13 saniye for 8:57:35 8 saat 57 dakika 35 saniye [music] 8:57:40 8 saat 57 dakika 40 saniye companion moment. 8:57:53 8 saat 57 dakika 53 saniye Finances. [music] 8:58:02 8 saat 58 dakika 2 saniye [music] 8:58:14 8 saat 58 dakika 14 saniye Absolute maximos. 8:58:28 8 saat 58 dakika 28 saniye [music] 8:58:35 8 saat 58 dakika 35 saniye [music] 8:58:42 8 saat 58 dakika 42 saniye [music] 8:58:50 8 saat 58 dakika 50 saniye [music] 8:58:57 8 saat 58 dakika 57 saniye The cryptocurrency market has entered the opening days of 2026 with [music] renewed momentum. After a volatile end to 2025, prices across major digital 8:59:06 8 saat 59 dakika 6 saniye assets have moved sharply higher, drawing attention from both retail traders and [music] institutional investors. In early January, the total 8:59:13 8 saat 59 dakika 13 saniye cryptocurrency market capitalization climbed to around $3.2 trillion, according to aggregated data from major market trackers. This represents a 8:59:22 8 saat 59 dakika 22 saniye meaningful rebound from late 2025 levels, with the market adding hundreds of billions of dollars in value over a relatively short period. While exact figures vary, the direction is clear. 8:59:32 8 saat 59 dakika 32 saniye Capital has returned to the crypto market at the start of the year. At the center of this move is Bitcoin, which rallied toward the $93,000 level in the 8:59:39 8 saat 59 dakika 39 saniye first week of January. As the largest and most influential [music] digital asset, Bitcoin continues to act as the market's primary anchor, and its 8:59:47 8 saat 59 dakika 47 saniye strength has helped lift sentiment across the broader ecosystem. 8:59:50 8 saat 59 dakika 50 saniye Historically, [music] strong Bitcoin performance has often preceded periods of increased activity in alternative cryptocurrencies, and early 2026 [music] 8:59:59 8 saat 59 dakika 59 saniye appears to be following a similar pattern. Another key factor has been renewed institutional participation, particularly through spot [music] Bitcoin and Ethereum exchange traded 9:00:07 9 saat 7 saniye funds. Reports from early January indicate notable ETF inflows, suggesting that traditional investors are once again increasing exposure to digital 9:00:16 9 saat 16 saniye assets. The current momentum appears to be driven by a combination of factors, [music] including Bitcoin's price recovery, increased ETF inflows, 9:00:24 9 saat 24 saniye improved global risk sentiment, expectations of more supportive regulatory and macroeconomic conditions. 9:00:30 9 saat 30 saniye As 2026 begins, the cryptocurrency market finds itself at a familiar crossroads. Renewed optimism balanced against persistent uncertainty. Whether 9:00:38 9 saat 38 saniye this early strength marks the beginning of a sustained trend or simply [music] another chapter in crypto's cyclical nature is a question that only time will 9:00:45 9 saat 45 saniye answer. For now, [music] the message from the market is clear. Crypto is once again commanding attention. If you 9:00:53 9 saat 53 saniye approach crypto real estate with knowledge and preparation, the [music] rewards can be extraordinary. Bitcoin the bricks isn't just a catchy phrase. 9:01:01 9 saat 1 dakika 1 saniye It's the future of real estate investment. If you want to stay ahead of the curve, now's the [music] time to learn how crypto can open doors. 9:01:10 9 saat 1 dakika 10 saniye Literally. 9:01:18 9 saat 1 dakika 18 saniye [music] 9:01:22 9 saat 1 dakika 22 saniye important 9:01:29 9 saat 1 dakika 29 saniye [music] 9:01:36 9 saat 1 dakika 36 saniye [music] 9:01:49 9 saat 1 dakika 49 saniye technology. 9:01:50 9 saat 1 dakika 50 saniye [music] 9:02:07 9 saat 2 dakika 7 saniye [music] 9:02:10 9 saat 2 dakika 10 saniye From digital coins to physical assets, from online wallets to real world property lines, cryptocurrency is reshaping how we buy, sell, and think about real estate. 9:02:19 9 saat 2 dakika 19 saniye We are witnessing the merging of two worlds. The oldest asset on earth and one of the newest [music] technological inventions of our time. And as the 9:02:27 9 saat 2 dakika 27 saniye future unfolds, only one question [music] remain. Will Bitcoin buy your next home? 9:02:35 9 saat 2 dakika 35 saniye [music] 9:02:42 9 saat 2 dakika 42 saniye [music] 9:03:58 9 saat 3 dakika 58 saniye September 2008. 9:04:01 9 saat 4 dakika 1 saniye The global financial system is on the verge of a total blackout. [music] Layman Brothers has vanished. Meil Lynch 9:04:09 9 saat 4 dakika 9 saniye is gone. AIG is hemorrhaging [music] billions every hour. 9:04:15 9 saat 4 dakika 15 saniye In Washington, the halls of the Treasury are filled with the smartest minds in the country. But they have a problem. 9:04:23 9 saat 4 dakika 23 saniye They are staring at a black box of toxic debt worth trillions and no tools to open it. There is only one person who 9:04:32 9 saat 4 dakika 32 saniye has the map. one person who spent the last 20 years building a digital unblinking eye that can see through the 9:04:39 9 saat 4 dakika 39 saniye wreckage. The government didn't call the big banks to save the world. They needed someone to handle the toxic waste. 9:04:47 9 saat 4 dakika 47 saniye [music] And there was only one man that could lead through that darkness. They called Larry Frink. 9:04:57 9 saat 4 dakika 57 saniye Larry Frink, the man behind Black Rock. 9:05:03 9 saat 5 dakika 3 saniye Today, he manages more money than the GDP of almost every nation on Earth, $14 trillion. 9:05:12 9 saat 5 dakika 12 saniye But before he was the shadow sovereign of Wall [music] Street, he was a man who lost everything. 9:05:18 9 saat 5 dakika 18 saniye Who is Larry Frink? Lawrence D.Fin, 9:05:21 9 saat 5 dakika 21 saniye [music] 9:05:22 9 saat 5 dakika 22 saniye also known as Larry Frink, is one of the co-founders of Black Rockck. 9:05:26 9 saat 5 dakika 26 saniye [music] 9:05:26 9 saat 5 dakika 26 saniye He is also the chairman and CEO of the company, the largest money management firm in the world. It's the first time 9:05:34 9 saat 5 dakika 34 saniye in history a [music] company manages to reach such a milestone and gives a clear picture of how Black Rockck operates. 9:05:42 9 saat 5 dakika 42 saniye not just [music] a traditional investment bank but as a central pillar of the global financial [music] infrastructure where its sheer scale 9:05:51 9 saat 5 dakika 51 saniye allows it to influence economies and industries [music] at a level previously reserved only for nation states. 9:05:59 9 saat 5 dakika 59 saniye Founded in [music] 1988 as an investment firm that prioritized risk management with 11.5 to$14 [music] 9:06:07 9 saat 6 dakika 7 saniye trillion under management, Black Rockck's influence is staggering. 9:06:12 9 saat 6 dakika 12 saniye BlackRock is a top [music] three shareholder in nearly every company in the S&P 500 from Apple to Exxon, from 9:06:21 9 saat 6 dakika 21 saniye [music] Microsoft to Nestle. They don't just invest in the market, they are the market. [music] 9:06:29 9 saat 6 dakika 29 saniye But its reach is personal. It holds the retirement dreams of [music] over 35 million Americans. This is the story of 9:06:37 9 saat 6 dakika 37 saniye how a kid from a California shoe store became the custodian of the world's wealth. But who is Larry Frink? Lawrence 9:06:46 9 saat 6 dakika 46 saniye Douglas Frink [music] entered the world on November the 2nd, 1952. 9:06:51 9 saat 6 dakika 51 saniye [music] Born in Los Angeles, California, he was raised in a Jewish family in the heart of San Fernando Valley, the 9:06:59 9 saat 6 dakika 59 saniye quintessential [music] American suburb of Vano. 9:07:03 9 saat 7 dakika 3 saniye His home was a balance of academic [music] discipline and retail grit. His mother, Leela, was an English professor [music] who valued the power of language and education. 9:07:14 9 saat 7 dakika 14 saniye And long before he pulled the [music] strings of the global economy, Larry Frink was learning the value of money on a much smaller scale. His father's shoe 9:07:23 9 saat 7 dakika 23 saniye store in Vano, where he spent evenings helping and learning the [music] business. As one of three children, 9:07:30 9 saat 7 dakika 30 saniye Larry grew up in a household where hard work wasn't [music] just encouraged, it was the baseline. 9:07:36 9 saat 7 dakika 36 saniye While he often joked [music] he wasn't the smartest in the room, it was this specific combination of his mother's intellectual curiosity [music] and his 9:07:45 9 saat 7 dakika 45 saniye father's mainstream business sense that would eventually form the DNA of a global financial giant. While the future 9:07:53 9 saat 7 dakika 53 saniye titans of Wall Street were rubbing elbows in the marble halls [music] of Harvard or Yale, Think was a brewin. In 9:08:00 9 saat 8 dakika 1970, [music] Larry arrived at UCLA. For a young man from Vanoise, this wasn't just a local university. It was a world of ideas. 9:08:11 9 saat 8 dakika 11 saniye But it was in his [music] final years that the trajectory of his life shifted. 9:08:16 9 saat 8 dakika 16 saniye He immersed himself in political science, learning how power moves through nations. 9:08:21 9 saat 8 dakika 21 saniye But he soon realized that in the [music] modern world, power follows the money. 9:08:26 9 saat 8 dakika 26 saniye This led him to the Anderson [music] School of Management, specializing in real estate. It was here that he began [music] to see the world through the lens of assets and yields. 9:08:37 9 saat 8 dakika 37 saniye This public education gave him a different edge. While his peers at [music] private East Coast schools were being groomed for traditional corporate 9:08:45 9 saat 8 dakika 45 saniye roles, Larry [music] was developing the outsers's eye, perspective that allowed him to see opportunities in the messy, unpolished corners of the bond market. 9:08:58 9 saat 8 dakika 58 saniye He graduated in 1976, [music] not with a silver spoon, but with a California bred ambition to take on the giants of Manhattan. 9:09:07 9 saat 9 dakika 7 saniye He was a brewin headed for Wall Street and [music] the financial world had no idea what was coming. 9:09:17 9 saat 9 dakika 17 saniye The year is 1976. 9:09:20 9 saat 9 dakika 20 saniye New York City is a grit cover battlefield and Larry Frink has just been handed the keys to the kingdom. 9:09:27 9 saat 9 dakika 27 saniye Goldman Sachs, the most prestigious name in finance back then, has practically hired him. He had passed the technical 9:09:35 9 saat 9 dakika 35 saniye tests. He had charmed the partners. All that remained was a rubber stamp interview with human resources. 9:09:42 9 saat 9 dakika 42 saniye But Larry, Larry wasn't just confident. 9:09:45 9 saat 9 dakika 45 saniye He was impatient. When the recruiter asked for his thoughts on the firm, Larry didn't give a thank you. He gave a 9:09:52 9 saat 9 dakika 52 saniye consultation. He pointed out the flaws in their system. At Goldman, they wanted a soldier. Larry was already acting like a general. 9:10:05 9 saat 10 dakika 5 saniye In that room, the rigid Golden Way clashed with the unfiltered Frink way. 9:10:11 9 saat 10 dakika 11 saniye Before he could even hail a camp back to his hotel, the offer was dead. The most coveted job in Wall Street history had 9:10:19 9 saat 10 dakika 19 saniye vanished. All because Larry Frink couldn't stop himself from trying to fix a system he hadn't even joined yet. It 9:10:26 9 saat 10 dakika 26 saniye was a crushing blow. But in the shadow of that rejection, a door opened at a scrappy second tier firm called First 9:10:34 9 saat 10 dakika 34 saniye Boston. It was a place with less prestige but more white space. At Goldman, he would have been a cog in a 9:10:42 9 saat 10 dakika 42 saniye perfect machine. At First Boston, he was the architect. He was given a desk, a telephone, and the freedom to build 9:10:50 9 saat 10 dakika 50 saniye something entirely new, the mortgagebacked security. He didn't know it yet, but that recruiters know was the 9:10:58 9 saat 10 dakika 58 saniye foundation upon which the $14 trillion empire of Black Rock would be built. 9:11:10 9 saat 11 dakika 10 saniye [music] 9:11:10 9 saat 11 dakika 10 saniye It's 1976 when Larry Frink arrives at First Boston. At the time, the firm was the scrappy underdog of investment 9:11:19 9 saat 11 dakika 19 saniye banking. It [music] wasn't as stiff as Morgan Stanley or as elitist as Goldman. 9:11:25 9 saat 11 dakika 25 saniye It was the perfect laboratory for a man who didn't fit the mold. Larry was assigned to the bond department. Back 9:11:33 9 saat 11 dakika 33 saniye then, bonds were considered the boring corner of finance. It was where you went to retire. Stocks were sexy. Bonds were 9:11:41 9 saat 11 dakika 41 saniye for grandmothers. But Larry saw something everyone else missed. [music] He looked at the American dream. the 9:11:49 9 saat 11 dakika 49 saniye suburban house, the white picket fence, the 30-year mortgage, and he saw a math problem. He realized that if you took 9:11:58 9 saat 11 dakika 58 saniye thousands of individual home mortgages, bundled [music] them together like a deck of cards, and sold slices of that deck to investors, [music] you created a money machine. 9:12:09 9 saat 12 dakika 9 saniye This was the birth of the securitization market. 9:12:13 9 saat 12 dakika 13 saniye What Larry Frink helped create was more than a financial product. It was a structural shift. 9:12:22 9 saat 12 dakika 22 saniye Securitization didn't just bundle mortgages. It separated risk from reality. 9:12:29 9 saat 12 dakika 29 saniye For the first time, financial value could travel [music] faster than the underlying economy that supported it. A house in California became [music] a 9:12:37 9 saat 12 dakika 37 saniye line in a spreadsheet in New York, which became a yield sold to an investor in Tokyo. Risk no longer lived where 9:12:45 9 saat 12 dakika 45 saniye decisions were made. It was abstracted, sliced, repackaged, and distributed across the system. This was the moment 9:12:53 9 saat 12 dakika 53 saniye when finance stopped reflecting the real economy and began building a parallel one. A system that could grow without 9:13:01 9 saat 13 dakika 1 saniye limits as long as everyone believed the models were [music] right. And for a while, they were. 9:13:08 9 saat 13 dakika 8 saniye By the early 80s, [music] Larry was the golden boy. He wasn't just hitting targets, he was shattering them. In one 9:13:15 9 saat 13 dakika 15 saniye year, his department was responsible for nearly onethird of First Boston's total profits. At age 31, he became the 9:13:23 9 saat 13 dakika 23 saniye youngest managing director the firm had ever seen. He was earning millions. He was the successor, the Prodigy, the man 9:13:30 9 saat 13 dakika 30 saniye who could do no wrong. He had moved to his family to a sprawling estate. He [music] was flying private. He had 9:13:38 9 saat 13 dakika 38 saniye conquered the grit cover battlefield of Manhattan. 9:13:43 9 saat 13 dakika 43 saniye But in the world of high finance, the higher you fly, the thinner the air becomes. 9:13:52 9 saat 13 dakika 52 saniye Larry was making hundreds of millions for the bank. But there was a ghost in the machine, a variable he hadn't accounted for. The year was 1986. 9:14:03 9 saat 14 dakika 3 saniye Larry had made a massive bet on interest rates. He believed they would stay stable. He was so sure of his math, so 9:14:12 9 saat 14 dakika 12 saniye confident in his track record that he didn't realize the ground was shifting beneath his feet. 9:14:18 9 saat 14 dakika 18 saniye In just 3 months, the Golden Boy department went from profit to a catastrophic [music] $100 million loss. In the 80s, 100 9:14:28 9 saat 14 dakika 28 saniye million wasn't just a loss, it was a national [music] scandal. Overnight, the man who was supposed to run the bank was a pariah. The phones stopped ringing. 9:14:37 9 saat 14 dakika 37 saniye The friends on the trading floor looked away when he walked by. He had been the smartest man in the room until he 9:14:44 9 saat 14 dakika 44 saniye wasn't. He would later describe this moment as the most painful experience of my life. But as he sat in the ruins of 9:14:52 9 saat 14 dakika 52 saniye his reputation, Larry Frink wasn't just mourning his career. He was obsessed with [music] one question. How did I not see the risk? 9:15:03 9 saat 15 dakika 3 saniye That obsession, the fear of the unknown variable would become the cornerstone of Black Rockck. 9:15:14 9 saat 15 dakika 14 saniye By 1983, Larry wasn't just selling bonds, he was a pioneer of the CMO, collateralized [music] mortgage obligation. 9:15:25 9 saat 15 dakika 25 saniye Think of it like a waterfall. Larry took thousands of mortgages and sliced them into tranches. Some investors took the top slice, [music] low risk, low reward. 9:15:36 9 saat 15 dakika 36 saniye Others took the bottom, high risk, high yield. It was a masterpiece of financial engineering. It made the illquid liquid. 9:15:45 9 saat 15 dakika 45 saniye It made First Boston the center of the universe. 9:15:50 9 saat 15 dakika 50 saniye But there was a flaw, a tiny mathematical ghost in his models. 9:15:55 9 saat 15 dakika 55 saniye Larry's team had predicted that interest rates would rise and they hedged their bets accordingly. But in the second 9:16:02 9 saat 16 dakika 2 saniye quarter of 1986, rates did something the models said was impossible. They plummeted because they didn't have a system to 9:16:11 9 saat 16 dakika 11 saniye track their realtime exposure. Larry was flying blind. He was the pilot of a Boeing 747 trying to land in a storm 9:16:19 9 saat 16 dakika 19 saniye using nothing but a compass and a prayer. By the time he realized the engines were on fire, the plane had [music] already hit the mountain. $100 million. 9:16:30 9 saat 16 dakika 30 saniye all gone. He wasn't just fired, he was erased. 9:16:38 9 saat 16 dakika 38 saniye After the dust settled, Larry found himself in a peculiar kind of exile. He wasn't just unemployed, [music] he was haunted. He realized that the 9:16:48 9 saat 16 dakika 48 saniye $100 million loss wasn't a failure of talent, it was a failure of vision. What happened in [music] 1986 wasn't a personal miscalculation. 9:16:58 9 saat 16 dakika 58 saniye It was a systemic blindness. 9:17:01 9 saat 17 dakika 1 saniye At the time, every major financial institution [music] operated the same way. Positions were fragmented. Exposure was estimated, not 9:17:10 9 saat 17 dakika 10 saniye measured. Risk was inferred after the fact. Banks knew what they bought yesterday, but not what it was worth 9:17:18 9 saat 17 dakika 18 saniye right now. The system rewarded speed, volume, and confidence, not understanding. And as long as [music] markets moved slowly, the illusion held. 9:17:28 9 saat 17 dakika 28 saniye But once volatility entered the market, no one truly knew where [music] the danger was or how large it had become. 9:17:36 9 saat 17 dakika 36 saniye Larry didn't just lose money. [music] He realized the entire financial system was flying without instruments. Wall Street 9:17:43 9 saat 17 dakika 43 saniye was essentially a collection of blind giants. [music] Every major firm, Goldman, Layman, 9:17:50 9 saat 17 dakika 50 saniye Merrill Lynch, was standing just 1 in away from total collapse at any given second. Why? Because they didn't 9:17:58 9 saat 17 dakika 58 saniye actually know what they owned. This was information blindness. 9:18:05 9 saat 18 dakika 5 saniye In the 1980s, you knew what you bought yesterday, but you had no idea what it was worth right now. A sudden shift in 9:18:13 9 saat 18 dakika 13 saniye interest rates or a political [music] coup across the ocean could vaporize a billion dollars before the morning 9:18:20 9 saat 18 dakika 20 saniye coffee was poured. [music] Larry understood a terrifying truth. The entire global financial system was built on a foundation of guesswork. 9:18:32 9 saat 18 dakika 32 saniye It hit him with the force of an epiphany. If he could build a brain, a machine that could see the risk that 9:18:39 9 saat 18 dakika 39 saniye humans were too slow to calculate, he wouldn't just be a banker. He would be the only man in the world with a 9:18:46 9 saat 18 dakika 46 saniye flashlight in a dark room. This realization changed his entire philosophy of investing. He stopped 9:18:54 9 saat 18 dakika 54 saniye looking for the big score and [music] started looking for the safe passage. He didn't want to beat the market anymore. 9:19:01 9 saat 19 dakika 1 saniye He wanted to measure [music] it. 9:19:05 9 saat 19 dakika 5 saniye He would later tell his partners, "We are never going to be blind again." That vow, born from the humiliation of 1986, 9:19:14 9 saat 19 dakika 14 saniye became the blueprint for [music] a new kind of firm. A firm that didn't rely on the ego of a star trader, but on the cold, unblinking eye of technology. 9:19:31 9 saat 19 dakika 31 saniye Larry Frink was a man with a vision, but he was also a man with a tainted resume. 9:19:37 9 saat 19 dakika 37 saniye To the rest of Wall Street, he was the guy who lost a h 100red million. But to a small circle of insiders at First 9:19:44 9 saat 19 dakika 44 saniye Boston, he was the only one who truly understood why it happened. He began making calls. He wasn't offering high 9:19:52 9 saat 19 dakika 52 saniye salaries or flashy offices. He was offering a chance to build a holy grail, a financial firm where technology 9:20:00 9 saat 20 dakika governed the ego, not the other way round. And he eventually found the right people to help him build that holy grail. 9:20:11 9 saat 20 dakika 11 saniye Rob Capito, the enforcer, a powerhouse trader who knew the plumbing of the bomb market better than anyone else. He 9:20:20 9 saat 20 dakika 20 saniye provided the muscle Larry needed to execute the vision. Ben Golib, the Oracle, a PhD with a mind like a 9:20:29 9 saat 20 dakika 29 saniye supercomput. While other bankers were focused on lunch reservations, Golib was thinking about value at risk and Monte Carlo simulations. 9:20:39 9 saat 20 dakika 39 saniye Susan Wagner, the mastermind, brilliant, calculating, and capable of seeing structural flaws in a 9:20:47 9 saat 20 dakika 47 saniye multi-billion dollar merger before a single paper was signed. Along with Barbara Novik, Ralph Schlstein, Q 9:20:54 9 saat 20 dakika 54 saniye Freighter, and Keith Anderson, they became the original eight. Frink wasn't looking for bankers who would run after 9:21:01 9 saat 21 dakika 1 saniye the money. He wanted architects, people who were tired of being blind. 9:21:08 9 saat 21 dakika 8 saniye When he found them, they met in living rooms and coffee shops. They had the blueprints for a system they called Aladdin, an acronym for asset, 9:21:17 9 saat 21 dakika 17 saniye liability, debt, and derivative [music] investment network. It was designed to be the unblinking eye Larry had dreamed of in his exile. 9:21:28 9 saat 21 dakika 28 saniye But a brain without a body is just a dream. To build Aladdin, they needed hardware. They needed offices. And most 9:21:36 9 saat 21 dakika 36 saniye importantly, they needed the one thing Larry's reputation had cost him. 9:21:40 9 saat 21 dakika 40 saniye Capital. Aladdin was not designed to beat the market. It was designed to understand it. But its real power emerged when others started using it. 9:21:50 9 saat 21 dakika 50 saniye Banks, insurance companies, pension funds, sovereign institutions. As Aladdin spread, something subtle 9:21:59 9 saat 21 dakika 59 saniye happened. Risk stopped [music] being subjective. It became standardized. When Aladdin flagged an asset as dangerous, entire markets adjusted accordingly. 9:22:11 9 saat 22 dakika 11 saniye [music] 9:22:12 9 saat 22 dakika 12 saniye Not because Larry Frink said so, but because the system trusted the model. At that point, Black Rockck was no longer 9:22:19 9 saat 22 dakika 19 saniye just managing money. It was helping define how risk itself was [music] understood. And whoever defines risk defines the boundaries of decisionmaking. 9:22:40 9 saat 22 dakika 40 saniye Enter Steven Schwartzman. In 1988, Schwartzman was the rising king of private equity. His firm Blackstone was aggressive, wealthy, and hungry. 9:22:52 9 saat 22 dakika 52 saniye The meeting was tense. Schwartzman knew Larry's history. He knew about the 1986 9:22:57 9 saat 22 dakika 57 saniye [music] 9:22:58 9 saat 22 dakika 58 saniye disaster. But Larry didn't hide from it. He used it as his primary selling point. 9:23:05 9 saat 23 dakika 5 saniye Because Larry had seen the end of the world already, he knew exactly how the lights went out. And because of that, he was the only one who knew how to keep them on. 9:23:16 9 saat 23 dakika 16 saniye Larry's pitch was revolutionary. He didn't want to start a hedge fund. He wanted to create a fiduciary company, a 9:23:23 9 saat 23 dakika 23 saniye firm that managed other people's money with the same technological rigor usually reserved for NASA. He asked for 9:23:31 9 saat 23 dakika 31 saniye a $5 million credit line and a partnership. In exchange, Schwartzman would own 50% of the new venture. He 9:23:39 9 saat 23 dakika 39 saniye knew he was buying cheap because he was buying on a distressed asset, Frink's damaged reputation. 9:23:46 9 saat 23 dakika 46 saniye But he did so betting on the idea that the experience had [music] turned Larry Frink into some sort of financial genius. 9:23:55 9 saat 23 dakika 55 saniye The deal was done. On a Friday in March 1988, the team moved into [music] a single cramped room within Blackstone's offices. 9:24:04 9 saat 24 dakika 4 saniye They were five computers, a few folding chairs, and a mountain of cables on the floor. They were under the Blackstone 9:24:11 9 saat 24 dakika 11 saniye umbrella, but Larry knew that this was just a temporary shelter. He didn't just want [music] a department, he wanted an 9:24:18 9 saat 24 dakika 18 saniye empire. He had the money. He had the team. [music] And in the corner of that small room, the first lines of code for Aladdin were being written. 9:24:29 9 saat 24 dakika 29 saniye The information blindness was over. The era of Black Rock, though it didn't have that name yet, had begun. 9:24:41 9 saat 24 dakika 41 saniye [music] 9:24:43 9 saat 24 dakika 43 saniye The first office of Blackstone Financial Management wasn't a glass tower. [music] It was a glorified closet. Because of 9:24:50 9 saat 24 dakika 50 saniye the heat generated by the early Sun Micro Systemystems workstations, [music] the temperature in the room rarely dropped below 80° 27° [music] C. 9:25:01 9 saat 25 dakika 1 saniye While the rest of the Blackstone group was out at expensive lunches [music] closing leveraged buyouts, Larry's original eight were building a digital fortress. 9:25:12 9 saat 25 dakika 12 saniye They [music] were the weirdos in the basement. It was here that the name Aladdin became a living thing. Every day, Ben Golab and [music] his team fed 9:25:21 9 saat 25 dakika 21 saniye it data. Interest rates, housing prices, historical crashes. They [music] were teaching the machine to be afraid of everything Larry hadn't seen in 1986. 9:25:35 9 saat 25 dakika 35 saniye [music] 9:25:37 9 saat 25 dakika 37 saniye By 1992, the department inside Blackstone was no longer a startup. It was a powerhouse. 9:25:44 9 saat 25 dakika 44 saniye [music] 9:25:44 9 saat 25 dakika 44 saniye Larry's team was managing $17 billion. 9:25:48 9 saat 25 dakika 48 saniye They weren't just a side project anymore. They were a significant engine of Blackstone's growth. But with success [music] came a toxic byproduct, identity confusion. 9:26:00 9 saat 26 dakika Clients were getting confused. They would call Blackstone looking for Larry's bond expertise or called Larry looking for Schwarzman's [music] 9:26:08 9 saat 26 dakika 8 saniye buyouts. But the friction went deeper than a name. It was a war of philosophies. Schwartzman [music] was a dealmaker. He wanted to own companies. 9:26:18 9 saat 26 dakika 18 saniye Think was a fiduciary. He wanted to manage risk for others. [music] The tension was similar to having two 9:26:26 9 saat 26 dakika 26 saniye predators in a cage too small to fit both. The breaking point [music] came over equity. Larry wanted to use stock 9:26:33 9 saat 26 dakika 33 saniye to attract and keep the original eight [music] and new talent. Schwarzman, holding 50% of the firm, didn't want to 9:26:41 9 saat 26 dakika 41 saniye dilute his [music] state. The partnership that saved Larry's career was now suffocating his vision. In 1994, 9:26:47 9 saat 26 dakika 47 saniye [music] 9:26:48 9 saat 26 dakika 48 saniye they reached the deal. 9:26:52 9 saat 26 dakika 52 saniye Schwarzman agreed to sell Blackstone for $240 million. At the time, it seemed like a win [music] for Schwarzman, a 9:27:00 9 saat 27 dakika massive return on his $5 million investment. It wasn't just about money. [music] It was about the spotlight. 9:27:07 9 saat 27 dakika 7 saniye Schwarzman was the king of Wall Street, but his subtenant, Larry Frink, was the one the New York [music] Times wanted to 9:27:14 9 saat 27 dakika 14 saniye interview. But for Larry, it was the price of freedom. Schwarzman would later call selling [music] Black Rock the 9:27:21 9 saat 27 dakika 21 saniye worst mistake of my career. For Larry, the divorce was the moment the training wheels came off. He was no longer under 9:27:29 9 saat 27 dakika 29 saniye anyone's umbrella. He was the CEO of an independent firm. [music] Now he just had to prove he could survive the coming storm of the late '9s. 9:27:48 9 saat 27 dakika 48 saniye It is 2008. The financial world was experiencing a heart attack. The financial smoothies that mortgage back 9:27:56 9 saat 27 dakika 56 saniye securities Larry had helped create 30 years earlier had turned into a global poison. 9:28:02 9 saat 28 dakika 2 saniye Banks didn't know what they owned, and more importantly, they didn't know what their neighbors owned. Trust had evaporated. [music] 9:28:10 9 saat 28 dakika 10 saniye When the US government realized the economy was on the brink of a total blackout, they didn't call Goldman Sachs. They didn't call JP Morgan. While 9:28:20 9 saat 28 dakika 20 saniye the CEOs of Layman and Merrill were begging for government checks, Larry Frink [music] was the one the government called to write the checks. 9:28:29 9 saat 28 dakika 29 saniye He was the only titan left standing with a clean balance sheet. 9:28:33 9 saat 28 dakika 33 saniye The United States government didn't just seek advice. It delegated responsibility. 9:28:40 9 saat 28 dakika 40 saniye Black Rockck was tasked with valuing assets [music] no one understood, managing risks no one could measure, and stabilizing markets that were collapsing in real time. 9:28:51 9 saat 28 dakika 51 saniye This wasn't a bailout. It was an outsourcing of core sovereign functions. 9:28:57 9 saat 28 dakika 57 saniye For the first time, [music] a private firm played a central role in maintaining global financial stability. 9:29:03 9 saat 29 dakika 3 saniye Not through political authority, but through technical capability. 9:29:08 9 saat 29 dakika 8 saniye From that moment on, power was no longer just about laws and institutions. It was about who had the tools to see the system clearly. 9:29:17 9 saat 29 dakika 17 saniye Black Rockck was hired to manage the toxic waste of the crisis. They became the official cleaner for the US 9:29:24 9 saat 29 dakika 24 saniye government, managing $130 billion of troubled assets. 9:29:31 9 saat 29 dakika 31 saniye Suddenly, Larry Frink was the most powerful man in the room, acting as an adviser to the president and the Treasury. 9:29:39 9 saat 29 dakika 39 saniye But while he was saving the system, he saw a once-ina-lifetime opportunity to dominate it. In the middle of the 9:29:46 9 saat 29 dakika 46 saniye carnage, Barclay's bank in the UK was desperate for cash. They needed to sell their crown jewel, a division called 9:29:54 9 saat 29 dakika 54 saniye Barclay's Global Investors, which included a revolutionary product called Eyesshares. 9:30:00 9 saat 30 dakika Eyessshares represented passive investing, ETFs that track the whole market rather than trying to beat it. It 9:30:08 9 saat 30 dakika 8 saniye was the ultimate expression of Larry's philosophy. Stop betting on stars and start owning the system. It was a massive $13.5 billion gamble. 9:30:19 9 saat 30 dakika 19 saniye If the markets continue to fall, the deal could sink Black Rockck. But Larry knew something the others didn't. He had 9:30:27 9 saat 30 dakika 27 saniye looked into the eye of Aladdin, and Aladdin told him that the bottom was near. With the acquisition of Eyesshares 9:30:34 9 saat 30 dakika 34 saniye in 2009, Blackrop doubled its size overnight. They weren't just a bond shop anymore. They were now the largest money 9:30:42 9 saat 30 dakika 42 saniye manager on the planet. They had gone into the crisis as a respected firm. 9:30:48 9 saat 30 dakika 48 saniye They came out of it as the shadow government of finance. 9:30:58 9 saat 30 dakika 58 saniye By 2012, Larry Frink had built the machine. He had the assets, the data, and the influence. But he realized that 9:31:06 9 saat 31 dakika 6 saniye [music] being king of Wall Street wasn't enough. He wanted to change the way the world did business. Every January, 9:31:14 9 saat 31 dakika 14 saniye [music] a ritual began that would send tremors through boardrooms from Detroit to Frankfurt. Larry started writing letters. They weren't just annual 9:31:23 9 saat 31 dakika 23 saniye [music] reports. They were the Black Rockck Manifestos. 9:31:29 9 saat 31 dakika 29 saniye In 2018, he dropped a bomb. He told the world's CEOs that if they wanted Black Rockck's money, they had to prove they 9:31:37 9 saat 31 dakika 37 saniye served a social purpose. He wasn't just asking for profits. He was asking for a soul. He was mainstreaming ESG, environmental, social, and governance. 9:31:50 9 saat 31 dakika 50 saniye And he was doing [music] it with a $10 trillion hammer. But Larry's new gospel 9:31:55 9 saat 31 dakika 55 saniye [music] 9:31:56 9 saat 31 dakika 56 saniye didn't sit well with everyone. By 2021, the Golden Boy was finding himself [music] in the middle of a two-front war. 9:32:05 9 saat 32 dakika 5 saniye The ESG debate was never cultural. It was economic. At its core, ESG was about 9:32:12 9 saat 32 dakika 12 saniye risk management, anticipating [music] regulation, climate disruption, and social instability. 9:32:19 9 saat 32 dakika 19 saniye For Black Rockck, ignoring [music] those factors wasn't neutral. It was dangerous. But when capital begins to price the future, it also begins to 9:32:28 9 saat 32 dakika 28 saniye shape it. That's why the backlash was so intense. 9:32:32 9 saat 32 dakika 32 saniye To the left, Larry was a hypocrite. They called him a greenwasher because Black Rockck [music] still held billions in oil and gas stocks. To the right, he was 9:32:42 9 saat 32 dakika 42 saniye a globalist villain who was using other people's money to [music] push a radical environmental agenda. The backlash 9:32:49 9 saat 32 dakika 49 saniye turned into a full-scale political assault. 9:32:54 9 saat 32 dakika 54 saniye State treasurers in Florida, Texas, and Mississippi began pulling billions out of Black Rockck. They accused Larry of 9:33:01 9 saat 33 dakika 1 saniye boycotting energy and violating his duty to investors. 9:33:06 9 saat 33 dakika 6 saniye For the first time, the man who had mastered risk found himself in a risk he couldn't calculate, the culture war. 9:33:17 9 saat 33 dakika 17 saniye He told a crowd in Aspen that he was ashamed to be a part of the debate. 9:33:21 9 saat 33 dakika 21 saniye [music] 9:33:22 9 saat 33 dakika 22 saniye He even stopped using the term ESG altogether, calling it weaponized. He had tried to become the conscience of 9:33:29 9 saat 33 dakika 29 saniye capitalism. Instead, it became its most controversial target. But even as the politicians shouted and the protesters marched, the assets kept growing. 9:33:41 9 saat 33 dakika 41 saniye [music] 9:33:42 9 saat 33 dakika 42 saniye Because in the end, whether you loved him or hated him, you couldn't escape [music] the machine he built. 9:33:58 9 saat 33 dakika 58 saniye January 2026, [music] the number flashes on a terminal in Black Rockck's Hudson Yards headquarters. 9:34:05 9 saat 34 dakika 5 saniye $14 trillion. 9:34:08 9 saat 34 dakika 8 saniye It is a number so vast it defies human comprehension. 9:34:13 9 saat 34 dakika 13 saniye If Larry Frink's assets under [music] management were a country's GDP, it would be the third largest economy on Earth, surpassed only by the [music] United States and China. 9:34:24 9 saat 34 dakika 24 saniye But as Larry looks out from his office, he isn't looking at stock tickers. He is looking at the very bones of civilization. 9:34:35 9 saat 34 dakika 35 saniye In 2024, Larry made his final most aggressive pivot. He realized that the next decade won't be one with bits on 9:34:44 9 saat 34 dakika 44 saniye [music] a screen, but with atoms in the ground. With the 12.5 billion acquisition of global infrastructure 9:34:51 9 saat 34 dakika 51 saniye partners, Larry signaled the end of the old Wall Street era. Larry saw the AI revolution coming. But he didn't buy the 9:34:59 9 saat 34 dakika 59 saniye chip makers. He bought the power plants that feed the chips. 9:35:09 9 saat 35 dakika 9 saniye But every empire faces [music] the same inevitable question. Succession. 9:35:17 9 saat 35 dakika 17 saniye For years, Wall Street has whispered about who could possibly replace the man who is Black [music] Rockck. Names like 9:35:24 9 saat 35 dakika 24 saniye Rob Capito, Mark Webbman, and Jennifer Johnson swirl in the press. [music] But the truth is more complex. Larry hasn't just built a [music] company. 9:35:34 9 saat 35 dakika 34 saniye He's built an organism. A system where Aladdin, now a very sophisticated AI entity, handles the risk while a legion 9:35:42 9 saat 35 dakika 42 saniye of 20,000 employees, [music] executes the vision. Aladdin is no longer just a calculator. It is a predictive engine 9:35:49 9 saat 35 dakika 49 saniye that runs millions of [music] simulations every second, anticipating everything from a war in the Middle East to a crop [music] failure in Brazil. 9:35:59 9 saat 35 dakika 59 saniye Some call him the king of the world. Others call him the shadow architect. 9:36:05 9 saat 36 dakika 5 saniye But if you ask Larry, he'll [music] tell you he's still that kid from the Vanoise shoe store, just trying to make [music] sure that the maths add up. 9:36:16 9 saat 36 dakika 16 saniye He took the greatest humiliation of his life and turned it into a shield for the global economy. 9:36:22 9 saat 36 dakika 22 saniye He taught the world that profit without a plan is just a gamble and that in the dark, the man with a flashlight is king. 9:36:32 9 saat 36 dakika 32 saniye There is one financial [music] question the system cannot answer. What happens when everyone measures risk the same 9:36:39 9 saat 36 dakika 39 saniye way? When models converge. When assumptions [music] align. When diversity of judgment disappears. 9:36:46 9 saat 36 dakika 46 saniye A system optimized for stability [music] can become fragile. Not because it is wrong but because it leaves no room for the unexpected. [music] 9:36:55 9 saat 36 dakika 55 saniye When the supervisor becomes invisible and the rules are embedded in code, accountability becomes harder to locate, 9:37:02 9 saat 37 dakika 2 saniye the system works until it doesn't. And that's why Blackprock isn't just a shareholder in your company. They are 9:37:10 9 saat 37 dakika 10 saniye the landlord of your power plant, the owner of your airport, [music] the architect of your retirement. It is a 9:37:18 9 saat 37 dakika 18 saniye level of centralized influence [music] the world has never seen in a private individual. Lawrence D.Fin [music] didn't just build a bank. He built the unblinking eye of capitalism. 9:37:30 9 saat 37 dakika 30 saniye And as the world moves into the era of AI, climate shift, and global restructuring, one thing is certain. 9:37:37 9 saat 37 dakika 37 saniye Black Rockck will be there, watching, calculating, and growing. 9:39:05 9 saat 39 dakika 5 saniye It's just a small plastic brick. 9:39:08 9 saat 39 dakika 8 saniye Lightweight, simple, unchanged since 1958. [music] And yet, it has built entire universes. 9:39:20 9 saat 39 dakika 20 saniye Lego constructions truly take us back to childhood. [music] But they stay with us throughout our entire lives. From bedrooms to 9:39:28 9 saat 39 dakika 28 saniye boardrooms, from playgrounds to Hollywood, Lego has shaped generations. 9:39:35 9 saat 39 dakika 35 saniye When I design something from scratch, I start with an idea that occurs to me at any time of day. 9:39:42 9 saat 39 dakika 42 saniye I try to build it with Lego and see what I come up with. In a global toy market worth more than $120 billion, Lego 9:39:51 9 saat 39 dakika 51 saniye stands alone. A single company controlling nearly one in every $10 spent on toys worldwide. 9:39:59 9 saat 39 dakika 59 saniye Lego holds a leading position worldwide, recognized above all for its playability. 9:40:04 9 saat 40 dakika 4 saniye What if the most beloved toy in the world almost didn't exist? 9:40:10 9 saat 40 dakika 10 saniye Discover the incredible journey of a small, struggling carpentry shop. The dared to dream bigger than anyone thought possible. 9:40:19 9 saat 40 dakika 19 saniye This is the untold story of the [music] visionary who built Lego. 9:40:25 9 saat 40 dakika 25 saniye Transforming simple wooden bricks into [music] a multi-billion dollar empire and forever changing how we play. 9:40:34 9 saat 40 dakika 34 saniye But none of this began with billiondoll charts or cinematic universes. It began with a carpenter with a vision. 9:40:43 9 saat 40 dakika 43 saniye In a tiny Danish village, one man had a dream. Building [music] toys out of scraps of wood. 9:40:59 9 saat 40 dakika 59 saniye Ole Christensen was born in 1891 [music] in western Denmark, a place defined by silence, [music] soil, and hard work. 9:41:10 9 saat 41 dakika 10 saniye He grew up poor, like most children in the Jutland countryside. 9:41:15 9 saat 41 dakika 15 saniye But he learned the value of craftsmanship early. When you made something, it had to last. 9:41:22 9 saat 41 dakika 22 saniye He apprenticed as a carpenter. It was not a really glamorous [music] work, but meticulous, honest, a craft that matched Ola's character and manners. 9:41:34 9 saat 41 dakika 34 saniye Ola traveled through Denmark, Germany, and Norway. Everywhere he went, he left a reputation. Precise, patient, relentless. 9:41:46 9 saat 41 dakika 46 saniye In 1916, Ole returned home and bought a workshop in a place that barely existed on the map. Bund. No shops, no train 9:41:56 9 saat 41 dakika 56 saniye station, just a handful of families trying to survive the Danish winds. Don't worry, I'm fine. I'm fine. But 8 years later, disaster struck. 9:42:05 9 saat 42 dakika 5 saniye Oh. Oh. Oh, no. 9:42:07 9 saat 42 dakika 7 saniye In 1924, a fire tore through his workshop. Oh god, no. Please, no. Oh my god. Everything burned. 9:42:15 9 saat 42 dakika 15 saniye tools, wood, orders, and a lifetime of savings, all gone. 9:42:23 9 saat 42 dakika 23 saniye But Oair didn't quit. He rebuilt and rebuilt bigger than before. Not because 9:42:30 9 saat 42 dakika 30 saniye it was safe, but because he refused to let Billand disappear into the wind. 9:42:36 9 saat 42 dakika 36 saniye Then came the Great Depression. Houses weren't being built. Doors weren't being ordered. bills weren't being paid. 9:42:46 9 saat 42 dakika 46 saniye Olair had workers depending on him, families depending on him. So, he did something unexpected. He began crafting 9:42:54 9 saat 42 dakika 54 saniye small wooden toys. They were simple, durable, and beautiful. 9:43:02 9 saat 43 dakika 2 saniye Locals mocked him. A grown man making toys for children. You'll never survive. 9:43:08 9 saat 43 dakika 8 saniye But Ola believed that play and fun was a serious business. 9:43:14 9 saat 43 dakika 14 saniye In 1934, he held a contest to name the new toy company. He chose a short word, Lego. 9:43:22 9 saat 43 dakika 22 saniye It was not only a simple idea, but a philosophy and a promise. 9:43:28 9 saat 43 dakika 28 saniye He hung a sign in the workshop. Only the best is good enough. It wasn't marketing. It was his identity. 9:43:39 9 saat 43 dakika 39 saniye [panting] 9:43:40 9 saat 43 dakika 40 saniye Oh god, not again. 9:43:42 9 saat 43 dakika 42 saniye In 1942, Ola faced another fire. This time it was bigger, more devastating. 9:43:49 9 saat 43 dakika 49 saniye Every blueprint, every toy, every dream he had turned into smoke. But he had built himself the hardship. 9:43:59 9 saat 43 dakika 59 saniye And once more, he rebuilt the factory stronger than the two previous ones. 9:44:05 9 saat 44 dakika 5 saniye In 1947, at the worst economic moment, Ola made the riskiest choice of his life. He spent more than twice the 9:44:14 9 saat 44 dakika 14 saniye company's annual profits on a strange new machine, one that worked not with wood, but with plastic. 9:44:22 9 saat 44 dakika 22 saniye Retailers hated plastic. Parents distrusted it. But Ola saw something they didn't. Precision, repeatability, 9:44:31 9 saat 44 dakika 31 saniye and possibilities. Endless possibilities. 9:44:36 9 saat 44 dakika 36 saniye Only two years later, in 1949, LEGO released the first plastic bricks of its history. They didn't click. They 9:44:45 9 saat 44 dakika 45 saniye weren't perfect, but they were the beginning. 9:44:55 9 saat 44 dakika 55 saniye The idea was good, but O and his team faced setbacks while designing the bricks that had cemented Lego's identity 9:45:01 9 saat 45 dakika 1 saniye through the years. The plastic bricks didn't grip. This was a major problem for a building set because buildings 9:45:10 9 saat 45 dakika 10 saniye collapsed. Towers fell in front of their eyes. Apparently, Lego wasn't created to 9:45:16 9 saat 45 dakika 16 saniye build. And then in 1958, everything changed. 9:45:23 9 saat 45 dakika 23 saniye Unlike 20 years ago, LEGO today allows us to build many more things because they have released more realistic colors and shapes. 9:45:33 9 saat 45 dakika 33 saniye In the past, the pieces were mostly square. Today, there is a much wider variety of shapes, including more rounded elements, which allow us to 9:45:42 9 saat 45 dakika 42 saniye create more ergonomic forms, ones that more closely resemble the kinds of buildings and structures we see in everyday life. 9:45:51 9 saat 45 dakika 51 saniye Engineers at LEGO perfected a simple but ingenious solution. hollow tubes inside the brick. 9:45:59 9 saat 45 dakika 59 saniye Paired with the studs on top, the geometry created what LEGO calls clutch power. Not too tight, not too loose, just perfect. 9:46:10 9 saat 46 dakika 10 saniye This was not just an adjustment or improvement. It was the birth of what we know today as a Lego brick. The brick 9:46:18 9 saat 46 dakika 18 saniye that today [music] can still be used with the modern ones. 9:46:22 9 saat 46 dakika 22 saniye the brick that [music] was the foundation of a company that still makes history today. That same year, Lego filed the patent. 9:46:32 9 saat 46 dakika 32 saniye They had something worth [music] protecting, and Ole knew that sooner or later, it would be replicated. 9:46:39 9 saat 46 dakika 39 saniye It was January the 28th, 1958 [music] when the patent was filed. Later that year, Ole Christensen passed away. 9:46:48 9 saat 46 dakika 48 saniye [music] 9:46:49 9 saat 46 dakika 49 saniye And sadly, he never lived to see how far his brick would travel. 9:47:04 9 saat 47 dakika 4 saniye After his father died, Godfred Kirk Christensen stepped in. He wasn't inheriting the company. He was 9:47:11 9 saat 47 dakika 11 saniye inheriting a philosophy, one he had been raised [music] with. His father wasn't around anymore, but the original spirit 9:47:19 9 saat 47 dakika 19 saniye of Lego lived on in the second Christensen [music] generation. But he also had something to add. 9:47:26 9 saat 47 dakika 26 saniye Godfred believed Lego should be more than toys. It should be a system. A system where [music] every piece 9:47:33 9 saat 47 dakika 33 saniye connected with every other piece across every set. 9:47:38 9 saat 47 dakika 38 saniye This created a language of creativity and [music] possibilities. And a single idea changed everything. Suddenly, LEGO 9:47:46 9 saat 47 dakika 46 saniye wasn't a collection of toys, but an entire universe. 9:47:51 9 saat 47 dakika 51 saniye The company began to grow far beyond its original frontiers. 9:47:56 9 saat 47 dakika 56 saniye During the 1960s and '7s, [music] Lego expanded across Europe, Germany, Sweden, the UK. Villand, once a small village, became a global hub of play. 9:48:09 9 saat 48 dakika 9 saniye Lego then built its own airport, factories, and distribution [music] centers. In the world of construction toys, we know that Lego isn't the only brand around. 9:48:21 9 saat 48 dakika 21 saniye What Lego provides is a quality product. 9:48:25 9 saat 48 dakika 25 saniye Maybe one part is wrong for every 10,000 or 100,000 items. And if you are missing an item from a box, or if it is faulty, 9:48:33 9 saat 48 dakika 33 saniye the company's after sales service will not question the fact that you are missing a part. 9:48:41 9 saat 48 dakika 41 saniye And then the magic happened. 9:48:45 9 saat 48 dakika 45 saniye Lego introduced something no toy company had done at scale. Fully themed [music] worlds. Space town castles. 9:48:56 9 saat 48 dakika 56 saniye Children weren't just building structures anymore. They were building stories. 9:49:01 9 saat 49 dakika 1 saniye In 1978, LEGO released its most iconic invention since the brick, the minifigure. 9:49:08 9 saat 49 dakika 8 saniye It had a simple face, hands shaped like a sea, and feet made to stand on [music] studs. A tiny character that let kids 9:49:17 9 saat 49 dakika 17 saniye project themselves [music] into entire universes. 9:49:21 9 saat 49 dakika 21 saniye Stories now had heroes, and [music] Lego had a heartbeat. In the late 1970s, Lego was already run by the third Christensen 9:49:30 9 saat 49 dakika 30 saniye generation. [music] Ole's grandson killed began shaping the [music] company into the global powerhouse we know today. 9:49:39 9 saat 49 dakika 39 saniye He did so by creating [music] more sophisticated lines, bringing in new universes, technic brought mechanics, 9:49:46 9 saat 49 dakika 46 saniye pirates brought adventure, and trains brought motion. By the late 20th century, the global toy market was 9:49:54 9 saat 49 dakika 54 saniye becoming massive. [music] Tens of billions of dollars a year worth. 9:49:59 9 saat 49 dakika 59 saniye The United States [music] spent more on toys than any country on Earth. And China produced most of them, nearly 3/4 of the world's total. 9:50:09 9 saat 50 dakika 9 saniye In this booming landscape, Lego wasn't just another toy. It was the toy. 9:50:15 9 saat 50 dakika 15 saniye [music] 9:50:23 9 saat 50 dakika 23 saniye By the late 1990s, Lego was flying high. 9:50:27 9 saat 50 dakika 27 saniye It had become one of the most admired companies in Europe. A creative powerhouse built on the [music] philosophy of imagination and creation. 9:50:35 9 saat 50 dakika 35 saniye We're not focused only on childhood, but on something that has quite literally built us, pun intended, shaping our personalities through Lego from an early 9:50:44 9 saat 50 dakika 44 saniye age. Those memories became a foundation we've kept building on over time. 9:50:50 9 saat 50 dakika 50 saniye [music] That's why exhibitions like this bring us straight back to childhood. The audience here is very diverse, but once people walk in, they all become the boy or girl they once were. 9:51:02 9 saat 51 dakika 2 saniye But it's not all gold that glitters. 9:51:05 9 saat 51 dakika 5 saniye Under the surface, something dangerous was creeping in. The toy market was changing fast. Children were spending 9:51:12 9 saat 51 dakika 12 saniye more and more [music] time with video games and early computer entertainment. 9:51:17 9 saat 51 dakika 17 saniye Sony's PlayStation, Nintendo, and Hasbro's electronic toys were capturing [music] attention. And LEGO, determined 9:51:24 9 saat 51 dakika 24 saniye not to fall behind, expanded too far too fast. 9:51:29 9 saat 51 dakika 29 saniye Throughout the 1990s, Lego began introducing thousands of completely new pieces, specialized parts that not only 9:51:36 9 saat 51 dakika 36 saniye worked in one set. A single year could bring more than 350 new designs. Each of them costing [music] tens of thousands 9:51:45 9 saat 51 dakika 45 saniye of dollars in steel machining and precision engineering. 9:51:50 9 saat 51 dakika 50 saniye In 2002, Lego had more than 12,000 [music] active elements. The system of play, once 9:51:57 9 saat 51 dakika 57 saniye simple and universal, was becoming chaotic and difficult to follow. LEGO also tried becoming a lifestyle brand. 9:52:06 9 saat 52 dakika 6 saniye New ventures appeared everywhere. 9:52:08 9 saat 52 dakika 8 saniye Clothing lines, theme parks, homegoods, cartoon series, even watches and sneakers. 9:52:15 9 saat 52 dakika 15 saniye But these projects drained resources without reinforcing the core product. 9:52:19 9 saat 52 dakika 19 saniye the brick. And between 1999 [music] and 2003, LEGO sales collapsed. 9:52:27 9 saat 52 dakika 27 saniye During these years, the company went [music] from doubledigit growth to struggling. And by 2003, the company was 9:52:35 9 saat 52 dakika 35 saniye losing the equivalent of $1 million a day. In a global toy market still worth more than $70 billion US [music] at the 9:52:44 9 saat 52 dakika 44 saniye time, Lego, once the king of the toy box, was only a few steps away [music] from bankruptcy. 9:52:50 9 saat 52 dakika 50 saniye Times were dark, but a spark of genius appeared. In 1999, LEGO signed its first 9:52:58 9 saat 52 dakika 58 saniye ever licensing deal with no other than Lucasfilm. 9:53:02 9 saat 53 dakika 2 saniye The timing was perfect. Star Wars Episode 1 was about to hit theaters. 9:53:08 9 saat 53 dakika 8 saniye Hype was global and the first Lego Star Wars sets were instant hits, not just with children, with adults. Collectors 9:53:17 9 saat 53 dakika 17 saniye lined up to buy the X-wing, the Snowspeeder, or the first Millennium Falcon. For the first time in LEGO's 9:53:25 9 saat 53 dakika 25 saniye history, adults, including those in their 30s and 40s, were buying sets for themselves. 9:53:31 9 saat 53 dakika 31 saniye The adult fan of Lego community is getting bigger. This is because Lego is not the same as it was 20 or 30 years ago. 9:53:40 9 saat 53 dakika 40 saniye Before, Lego was only seen as a toy to play with when it was cold and you were indoors. 9:53:48 9 saat 53 dakika 48 saniye Today, Lego is much more than a toy. 9:53:50 9 saat 53 dakika 50 saniye It's used to create logos to design dynamic group activities. And it also represents a shift in how we see it. 9:53:58 9 saat 53 dakika 58 saniye years ago, if you said you played with Lego or built Lego, you almost had to explain yourself that you were at home playing with little figures making up battles. What we do today is different. 9:54:10 9 saat 54 dakika 10 saniye We come together as a community of adults and Lego has recognized that. 9:54:15 9 saat 54 dakika 15 saniye That's why more and more products are now designed specifically for adults, more complex to build, and also more expensive. 9:54:26 9 saat 54 dakika 26 saniye This kid demographic [music] would later become one of LEGO's most profitable segments. More licenses followed. [music] 9:54:34 9 saat 54 dakika 34 saniye Harry Potter, Spider-Man, Batman, Indiana Jones, and later [music] the newest Marvel Cinematic Universe. 9:54:42 9 saat 54 dakika 42 saniye Even though LEGO learned that storytelling sells, [music] in 2004, losses were mounting and survival was uncertain. 9:54:50 9 saat 54 dakika 50 saniye And then the company made a radical decision. 9:54:54 9 saat 54 dakika 54 saniye For the first time in its history, the company appointed a CEO from outside the Christensen family, Jurgen Victor, 9:55:03 9 saat 55 dakika 3 saniye a 35-year-old former McKenzie consultant. [music] He was calm, precise, analytical, 9:55:10 9 saat 55 dakika 10 saniye and brutally honest. His diagnosis [music] was simple. Lego had forgotten what made it Lego. 9:55:20 9 saat 55 dakika 20 saniye Kutto cut the number of unique elements by nearly 50%. He sold off the [music] theme parks. He shut down unprofitable 9:55:28 9 saat 55 dakika 28 saniye production facilities. He centralized supply chains, standardized materials, 9:55:33 9 saat 55 dakika 33 saniye [music] 9:55:34 9 saat 55 dakika 34 saniye and brought back discipline to the system. But more important, he put the brick back at the center of the company. 9:55:45 9 saat 55 dakika 45 saniye This turnaround didn't happen in isolation. The global toy industry was undergoing a seismic change. China was 9:55:53 9 saat 55 dakika 53 saniye producing nearly 75% of the world's toys, being the largest manufacturing consolidation in toy history. 9:56:01 9 saat 56 dakika 1 saniye Meanwhile, the United States had become the single largest consumer, responsible for nearly onethird of the global toy [music] spending. 9:56:12 9 saat 56 dakika 12 saniye By 2005, the toy market was worth close to $80 billion US. But it was brutally 9:56:19 9 saat 56 dakika 19 saniye [music] competitive as well. Seasonality was extreme. Nearly half of the annual toy sales occurred in just 3 months from October [music] to December. 9:56:30 9 saat 56 dakika 30 saniye Companies lived or died by Christmas. 9:56:33 9 saat 56 dakika 33 saniye Mattel was battling declining Barbie sales. Hasbro was betting its future on Transformers and board game reinventions. 9:56:41 9 saat 56 dakika 41 saniye Electronics [music] were eating market share across every age group. In this scenario, LEGO rebuilt and refocused and 9:56:50 9 saat 56 dakika 50 saniye then began rising above all of them. 9:56:59 9 saat 56 dakika 59 saniye Between 2008 and 2015, LEGO entered a new era, a renaissance driven by design, 9:57:07 9 saat 57 dakika 7 saniye storytelling, [music] digital engagement, and adult passion. 9:57:12 9 saat 57 dakika 12 saniye The company launched the ultimate collector series, producing [music] the largest, most detailed models in toy history. 9:57:20 9 saat 57 dakika 20 saniye LEGO architecture brought landmarks to coffee tables. 9:57:24 9 saat 57 dakika 24 saniye [music] 9:57:31 9 saat 57 dakika 31 saniye embracing it. My story with Lego began in the early '9s when I was a small child. 9:57:38 9 saat 57 dakika 38 saniye I started playing, but then I stopped for a while. 9:57:42 9 saat 57 dakika 42 saniye This is what most of us want to do when we are teenagers to do other hobbies and spend less time playing with Lego. 9:57:51 9 saat 57 dakika 51 saniye After that, when I was in my early 20s, I started collecting Lego. I met people from the Valencian community and founded Valrech. 9:58:01 9 saat 58 dakika 1 saniye That eventually led me to a television show where I took part and won. From there, companies began approaching me to develop projects. 9:58:13 9 saat 58 dakika 13 saniye At first, this hadn't even occurred to me, but I started to see a growing demand, whether it was building a corporate kit, 9:58:21 9 saat 58 dakika 21 saniye like a transport company's truck, or even a company's logistics headquarters. 9:58:27 9 saat 58 dakika 27 saniye This market opened up a professional path for me. 9:58:30 9 saat 58 dakika 30 saniye It supports me financially, but more importantly, it's deeply rewarding. 9:58:36 9 saat 58 dakika 36 saniye [music] Many of these projects challenge me to build things I would never choose on my own. But once a challenge is set, 9:58:42 9 saat 58 dakika 42 saniye build this. My mind immediately starts collecting ideas, figuring out how to shape them and bring the project to life in the best possible way. 9:58:55 9 saat 58 dakika 55 saniye The adult fans of Lego [music] skyrocketed. Forums, conventions, fan events, engineering clubs. A global 9:59:04 9 saat 59 dakika 4 saniye movement emerged. By 2014, [music] adults accounted for nearly onethird of Lego sales. 9:59:11 9 saat 59 dakika 11 saniye To anyone who thinks Lego is only for children, I'd say come and see the exhibition. 9:59:18 9 saat 59 dakika 18 saniye See what we're capable of creating with Lego pieces and how imagination develops in both children and adults. 9:59:26 9 saat 59 dakika 26 saniye Children work within certain limits and see things differently. But adults with a wider range of colors, shapes, and 9:59:34 9 saat 59 dakika 34 saniye ways to use the pieces can explore just how much is possible. 9:59:40 9 saat 59 dakika 40 saniye It was a radical shift in the economics of play. And [music] then came the cultural explosion. 9:59:47 9 saat 59 dakika 47 saniye In 2014, the Lego movie shattered expectations, earning nearly 500 million US at the [music] box office. 9:59:56 9 saat 59 dakika 56 saniye What started as a toy was now pop culture. By the mid [music] 2010s, LEGO was the world's most valuable toy 10:00:05 10 saat 5 saniye company, even surpassing Mattel, [music] Hasbro, and every other competitor. 10:00:10 10 saat 10 saniye The brick that started [music] it all was no longer just a product. It was a global icon. 10:00:21 10 saat 21 saniye The LEGO Group stands today as one of the most efficient, profitable, and culturally [music] influential toy companies on Earth. Its factories run 10:00:30 10 saat 30 saniye with [clears throat] near perfect precision. 10:00:32 10 saat 32 saniye Its design teams develop thousands of prototypes each year. Its supply chain delivers billions of bricks that must 10:00:40 10 saat 40 saniye all fit together flawlessly across decades. 10:00:44 10 saat 44 saniye In a global toy market worth roughly 120 billion a year, Lego commands nearly 9% 10:00:52 10 saat 52 saniye of all worldwide toy sales. No other toy brand, not Barbie, not Marvel figures, 10:00:59 10 saat 59 saniye not Nintendo merchandise, maintains such consistency across continents, genders, and generations. [music] 10:01:07 10 saat 1 dakika 7 saniye And unlike most toy companies that outsource manufacturing, LEGO controls a significant portion of its own production with major hubs in Denmark, 10:01:16 10 saat 1 dakika 16 saniye [music] 10:01:17 10 saat 1 dakika 17 saniye Hungary, Mexico, China, and the Czech Republic. 10:01:21 10 saat 1 dakika 21 saniye This vertical integration reduces risk, stabilizes quality, and protects one of the most important values in the company's DNA, precision. 10:01:32 10 saat 1 dakika 32 saniye Every LEGO brick must be manufactured with tolerances thinner than a strand of hair. If the clutch is too tight, the 10:01:39 10 saat 1 dakika 39 saniye model breaks. If it's too loose, towers collapse. Across billions of pieces, 10:01:46 10 saat 1 dakika 46 saniye perfection is not an ambition. It is an engineering reality for LEGO. 10:01:53 10 saat 1 dakika 53 saniye This level of detail gives the company one of the highest brand trust ratings in the world. Parents know the bricks 10:02:00 10 saat 2 dakika will last. Adults know the sets will impress. Collectors know the investment will hold value. 10:02:08 10 saat 2 dakika 8 saniye The modern toy market is a machine of impulse, tradition, celebration, and nostalgia. 10:02:14 10 saat 2 dakika 14 saniye In 2025, global spending on toys approaches $120 billion, nearly double what it was two 10:02:23 10 saat 2 dakika 23 saniye decades earlier. The United States remains the world's largest consumer, accounting for roughly onethird [music] 10:02:29 10 saat 2 dakika 29 saniye of global sales. A typical American household with children may spend $300 to $400 per child per [music] year on 10:02:38 10 saat 2 dakika 38 saniye toys. This is more than five times the global average. 10:02:43 10 saat 2 dakika 43 saniye Europe forms [music] the second largest block with strong purchasing power in Germany, the United Kingdom and France. 10:02:51 10 saat 2 dakika 51 saniye Asia-Pacific is rapidly growing, especially in China, [music] South Korea, and Japan. Driven by rising middle classes and urban lifestyles. 10:03:01 10 saat 3 dakika 1 saniye But the most important shift of the last decade is not geographic. It is demographic. 10:03:09 10 saat 3 dakika 9 saniye [laughter] 10:03:14 10 saat 3 dakika 14 saniye Adults, once considered irrelevant to the toy industry, are [music] now one of the most powerful forces. This growing 10:03:22 10 saat 3 dakika 22 saniye segment, commonly called the kid market, [music] now represents between 25 and 30% of all toy purchases worldwide. 10:03:31 10 saat 3 dakika 31 saniye Adults buy toys for nostalgia, for stress relief, for display, for identity. Lego is the undisputed champion of this movement. 10:03:42 10 saat 3 dakika 42 saniye Unlike other hobbies, Lego gives me a sense of calm. 10:03:49 10 saat 3 dakika 49 saniye It lets me take ideas from my mind, bring them to life, think them through, and simply enjoy the process. Right now, 10:03:57 10 saat 3 dakika 57 saniye I'm trying to instill that in my son to enjoy himself, to learn to see colors and shapes, and to understand that with imagination, anything is possible. 10:04:08 10 saat 4 dakika 8 saniye Its premium sets, Technic Hypercars, Star Wars Ultimate Collector Series, iconic landmarks, regularly exceed prices of $30, 500, even $800. 10:04:21 10 saat 4 dakika 21 saniye They sell out within hours. They hold aftermarket values like fine collectibles. This adult segment has 10:04:28 10 saat 4 dakika 28 saniye reshaped the entire financial landscape of the company. It provides stability when [music] children's trends shift. It 10:04:36 10 saat 4 dakika 36 saniye creates recurring revenue from loyal fans and it strengthens LEGO's position as a crossgenerational brand, something 10:04:44 10 saat 4 dakika 44 saniye few toy companies have [music] ever achieved. 10:04:48 10 saat 4 dakika 48 saniye Seasonality still dictates much of the global toy market. Every year, nearly half of all toy sales occur between 10:04:55 10 saat 4 dakika 55 saniye October and December. Companies live or die by holiday forecasting, inventory strategy, and shipment timing. But LEGO 10:05:05 10 saat 5 dakika 5 saniye has become the exception. Adult collectors buy year round. Digital experiences drive sales outside the 10:05:13 10 saat 5 dakika 13 saniye holiday season. Licensed launches create [music] anticipation even in slow quarters. 10:05:19 10 saat 5 dakika 19 saniye LEGO has effectively freed itself or at least partially from the seasonal dependency that has defined the toy 10:05:26 10 saat 5 dakika 26 saniye industry for over a century. The brick is physical, tangible, mechanical. But 10:05:33 10 saat 5 dakika 33 saniye Lego's success in the 21st century extends into digital worlds. Star Wars, 10:05:40 10 saat 5 dakika 40 saniye Batman, Marvel. These games defined an entire generation of familyfriendly titles. They sold tens of millions of 10:05:48 10 saat 5 dakika 48 saniye copies. They introduced humor, storytelling, and simplicity to a medium often dominated by complexity. 10:05:57 10 saat 5 dakika 57 saniye For many children born after the year 2000, Lego was not discovered in a toy box, but on a screen. The cinematic leap 10:06:06 10 saat 6 dakika 6 saniye came in 2014 when the Lego movie premiered to global acclaim. It earned nearly half a billion dollars. Most 10:06:14 10 saat 6 dakika 14 saniye importantly, it reframed Lego as a cultural idea, not a product. 10:06:20 10 saat 6 dakika 20 saniye The film taught a global audience that creativity matters, that imperfection is beautiful, that building and rebuilding 10:06:28 10 saat 6 dakika 28 saniye are not failures, they are the process of play. Lego Batman expanded the concept. Lego Ninjago created an 10:06:36 10 saat 6 dakika 36 saniye entirely new generation of fans and Lego Masters on television turned building into a competitive art form. 10:06:45 10 saat 6 dakika 45 saniye The brand had moved beyond toys, beyond stories, beyond bricks. It had become part of a cultural grammar of the 21st century. 10:07:00 10 saat 7 dakika Long before STEM became a global movement, Lego was already teaching children how to think like engineers. In 10:07:08 10 saat 7 dakika 8 saniye the 1990s, Lego Mindstorms introduced programmable robotics to students around the world. Later sets, we [music] do 10:07:17 10 saat 7 dakika 17 saniye Spike Prime Boost brought coding, sensors, and motors into classrooms and homes. Today, [music] LEGO Education 10:07:25 10 saat 7 dakika 25 saniye works with governments, schools, and universities to bring hands-on learning to millions of students. [music] 10:07:32 10 saat 7 dakika 32 saniye The philosophy is simple. Children learn best through play. This approach [music] shapes future engineers, designers, and 10:07:40 10 saat 7 dakika 40 saniye problem solvers. It helps children [music] experiment in ways that textbooks cannot. And it continues 10:07:47 10 saat 7 dakika 47 saniye Olirk's belief that play is not a distraction from learning, but the foundation of it. 10:07:54 10 saat 7 dakika 54 saniye In a world increasingly focused on sustainability, from my experience, what makes Lego different from other construction toys is its growing commitment to inclusion. 10:08:03 10 saat 8 dakika 3 saniye [music] 10:08:04 10 saat 8 dakika 4 saniye In recent years, LEGO has actively embraced people with different abilities. For example, by including figures in wheelchairs and releasing 10:08:12 10 saat 8 dakika 12 saniye sets in Braille. These are things most other brands simply don't offer, but LEGO does. 10:08:18 10 saat 8 dakika 18 saniye In addition, LEGO is strongly committed [music] to the environment. 10:08:23 10 saat 8 dakika 23 saniye They're producing more and more pieces using recycled plastic and replacing plastic packaging with paper to reduce waste, something other brands simply don't do. 10:08:34 10 saat 8 dakika 34 saniye Lego faces a unique challenge. Its bricks are made to last forever. A blessing for creativity, but a concern 10:08:42 10 saat 8 dakika 42 saniye in an era of plastic waste. In response, LEGO has invested hundreds of millions of dollars into developing more sustainable materials. 10:08:52 10 saat 8 dakika 52 saniye Plant-based polyethylene [music] is already used for leaves and trees. 10:08:56 10 saat 8 dakika 56 saniye Recycled PT prototypes continue to advance. 10:09:01 10 saat 9 dakika 1 saniye Recycled PET prototypes continue to advance. New polymer engineering [music] aims to create bricks as durable as ABS without the environmental cost. 10:09:13 10 saat 9 dakika 13 saniye This transition [music] is not simple. A Lego brick must interlock with perfect precision. A fraction of a millimeter 10:09:21 10 saat 9 dakika 21 saniye can make the difference between wonder and frustration. 10:09:25 10 saat 9 dakika 25 saniye But the mission is clear. A toy that lasts forever should also protect the world [music] it is played in. Play is not a luxury. Play is exploration. 10:09:35 10 saat 9 dakika 35 saniye [music] 10:09:36 10 saat 9 dakika 36 saniye Play is curiosity. 10:09:38 10 saat 9 dakika 38 saniye Play is the earliest form of human creativity. 10:09:42 10 saat 9 dakika 42 saniye From wooden ducks in a small Danish workshop [music] to interlocking bricks that span generations 10:09:49 10 saat 9 dakika 49 saniye to movies, video games, robotics, and global fan communities. LEGO has remained loyal to a simple truth. When 10:09:58 10 saat 9 dakika 58 saniye we build, we grow. When we imagine, we expand. When we play, we become more human. 10:10:12 10 saat 10 dakika 12 saniye More than a century ago, a carpenter rebuilt his workshop after a fire. 10:10:18 10 saat 10 dakika 18 saniye [music] He rebuilt it again after another. 10:10:21 10 saat 10 dakika 21 saniye Not because it was easy, but because he believed in the power of making things and in the power of play. Today, 10:10:30 10 saat 10 dakika 30 saniye billions of creations have risen from [music] that belief. Cities, castles, spaceships, 10:10:37 10 saat 10 dakika 37 saniye dreams that exist nowhere else but in the minds of the people who build them. 10:10:42 10 saat 10 dakika 42 saniye Lego is not perfect. It has faced crises, challenges, [screaming] and impossible decisions. But it endures 10:10:51 10 saat 10 dakika 51 saniye through war, through technological revolutions, through economic storms. Because imagination always endures. 10:11:00 10 saat 11 dakika And as long as there are hands reaching for bricks, [music] as long as there are minds ready to create, the legacy of Ole Kerr Christensen will continue. 10:11:11 10 saat 11 dakika 11 saniye Every dream [music] starts with a single piece. 10:12:43 10 saat 12 dakika 43 saniye Jensen Huang, the software moat. June 18th, 2024. 10:12:51 10 saat 12 dakika 51 saniye For a brief historic moment, the world had a new king. 10:12:57 10 saat 12 dakika 57 saniye Jensen Huang, the co-founder and CEO of Nvidia, stood at the peak of a $3.4 trillion mountain. 10:13:06 10 saat 13 dakika 6 saniye Analysts whispered that he wasn't just leading a company. He was leading the first entity destined for a $4 trillion valuation. 10:13:18 10 saat 13 dakika 18 saniye But to understand the man in the leather jacket, you cannot look at the triumph. [music] You must look at the fear. 10:13:27 10 saat 13 dakika 27 saniye Behind the 250% revenue jumps and the soldout age 100 backlogs lies a leader obsessed with the cyclical trap. 10:13:38 10 saat 13 dakika 38 saniye In the 60-year history of semiconductors, giants like Texas Instruments, Intel, 10:13:44 10 saat 13 dakika 44 saniye and Samsung have all held the crown only to see it slip away. 10:13:51 10 saat 13 dakika 51 saniye Jensen's mission is simple. Break the cycle before it breaks him. 10:13:59 10 saat 13 dakika 59 saniye Flashback to September 1996. 10:14:02 10 saat 14 dakika 2 saniye The golden era of the internet is dawning for everyone else but for Nvidia. It is a death nail. 10:14:11 10 saat 14 dakika 11 saniye Their first chip, the NV1, is a technical ghost rejected by Microsoft's DirectX. 10:14:19 10 saat 14 dakika 19 saniye Jensen stands before a dwindling team and delivers the most famous mantra in Silicon Valley history. 10:14:28 10 saat 14 dakika 28 saniye We have exactly 30 days of oxygen left. We are 30 days from bankruptcy. 10:14:35 10 saat 14 dakika 35 saniye How does a man go from cleaning toilets in a Kentucky reform school to controlling the foundational layer of the global AI economy? 10:14:45 10 saat 14 dakika 45 saniye From a red leather booth at a Denny's to a legal showdown in the US Supreme Court over the very intellectual honesty of his empire. 10:14:55 10 saat 14 dakika 55 saniye This is not just a story of silicon and software. 10:14:59 10 saat 14 dakika 59 saniye This is the chronicle of the man who decided to manufacture intelligence itself. 10:15:05 10 saat 15 dakika 5 saniye This is Jensen Hang, the architect of the digital brain. 10:15:12 10 saat 15 dakika 12 saniye Chapter one. Forged in the chaos, Nvidia was not born from abundance. Its 10:15:21 10 saat 15 dakika 21 saniye DNA was forged in the raw fires of survival. 10:15:26 10 saat 15 dakika 26 saniye Jen's son Huang arrived [music] in the United States as a young migrant, but his destination wasn't an elite prep 10:15:34 10 saat 15 dakika 34 saniye school. Due to a clerical misunderstanding by his [music] parents, he was sent to Onida Baptist Institute 10:15:41 10 saat 15 dakika 41 saniye in rural Kentucky, a place that at the time [music] functioned more as a reform school for troubled youths than a traditional academy. 10:15:51 10 saat 15 dakika 51 saniye At 9 years old, the future CEO of one of the world's most valuable companies wasn't coding. He was cleaning the 10:15:59 10 saat 15 dakika 59 saniye toilets of 150 teenagers every [music] single afternoon. 10:16:04 10 saat 16 dakika 4 saniye In his personal transcripts, Jensen reflects on this with a chilling stoicism. I didn't complain. I just learned to work hard. 10:16:14 10 saat 16 dakika 14 saniye Bad boy learned the first law of accelerated computing decades before it existed. [music] For a system to be efficient, it must be 10:16:23 10 saat 16 dakika 23 saniye able to process chaos under extreme pressure. 10:16:28 10 saat 16 dakika 28 saniye By 15, Jensen was the most efficient dishwasher and waiter at a Denny's in Portland. I was incredibly shy, he 10:16:37 10 saat 16 dakika 37 saniye admits. But the chaos of the kitchen forced me out of my shell. 10:16:42 10 saat 16 dakika 42 saniye It is no coincidence that Nvidia was founded in 1993 [music] inside a booth at that very same restaurant chain. 10:16:51 10 saat 16 dakika 51 saniye While the world saw the dawn of the PC as an office tool for spreadsheets, Jensen, Chris Mahovski, and Curtis Pim saw a fatal weakness. 10:17:04 10 saat 17 dakika 4 saniye In 1993, Intel's generalpurpose CPU was hitting a physical wall. If the future 10:17:11 10 saat 17 dakika 11 saniye [music] of computing was visual and immersive, the traditional serial architecture would become the bottleneck of human progress. 10:17:20 10 saat 17 dakika 20 saniye With only $40,000 in startup capital, they founded Nvidia to chase a ghost, accelerated computing. 10:17:29 10 saat 17 dakika 29 saniye They bet on a market the rest of the industry dismissed as a niche for toys, video games. [music] 10:17:36 10 saat 17 dakika 36 saniye Before Jensen, video games were the ultimate technological flywheel. 10:17:41 10 saat 17 dakika 41 saniye He knew that if you could master the massive realtime rendering of pixels, you could eventually simulate reality itself. 10:17:50 10 saat 17 dakika 50 saniye But before they could reach that glory, they had to survive their first massive technical abyss, the NV1. 10:18:07 10 saat 18 dakika 7 saniye By 1995, Nvidia's first massive bet, the NV1 chip, was ready to conquer the market. 10:18:15 10 saat 18 dakika 15 saniye But Jensen Hang had made a catastrophic technical gamble. 10:18:20 10 saat 18 dakika 20 saniye At a time when the industry was undecided, he bet on quadratic texture mapping, a [music] method that used curved surfaces to create 3D images. 10:18:30 10 saat 18 dakika 30 saniye It was mathematically intelligent, but it was a lonely path. The industry hammer dropped when Microsoft released 10:18:38 10 saat 18 dakika 38 saniye its first DirectX API. Microsoft chose triangles, not quads, as the universal language for PC gaming. 10:18:47 10 saat 18 dakika 47 saniye This decision rendered Nvidia's technology instantly obsolete. 10:18:53 10 saat 18 dakika 53 saniye The NV1 wasn't just a failure, it was a dead end. The company was bleeding cash. 10:19:00 10 saat 19 dakika And as Jensen famously put it, they were [music] staring at exactly 30 days of oxygen. 10:19:08 10 saat 19 dakika 8 saniye Nvidia's only lifeline was a strategic contract with the Japanese [music] giant Seagga to build the graphics engine for 10:19:15 10 saat 19 dakika 15 saniye the Sega Saturn. But Jensen was trapped in a moral and business dilemma. 10:19:21 10 saat 19 dakika 21 saniye He knew that if they continued building the chip for Sega using Nvidia's flawed quad technology, Sega would lose the 10:19:29 10 saat 19 dakika 29 saniye console war to Sony's PlayStation and Nvidia would eventually perish anyway. 10:19:35 10 saat 19 dakika 35 saniye In an act of intellectual honesty, or as many at the time called corporate suicide, [music] Jensen flew to Japan. [clears throat] He 10:19:43 10 saat 19 dakika 43 saniye sat across from Shy Chiro Inimiri, the CEO of Sega, and told him the brutal truth. Our technology is on the wrong 10:19:53 10 saat 19 dakika 53 saniye path. If we finish this project, you will produce [music] an inferior product. 10:19:59 10 saat 19 dakika 59 saniye Jensen asked for the impossible. He asked Sega to terminate the contract, but to pay the remaining $5 million 10:20:07 10 saat 20 dakika 7 saniye anyway. If you don't pay us, Jensen pleaded. [music] Nvidia will cease to exist tomorrow. 10:20:14 10 saat 20 dakika 14 saniye To the astonishment of the tech world agreed. He didn't pay for a working chip. He paid for Jensen's integrity. 10:20:25 10 saat 20 dakika 25 saniye That $5 million was the most expensive oxygen in history. 10:20:31 10 saat 20 dakika 31 saniye To make it last, Jensen had to fire half of his workforce. These weren't just employees. They were friends who had 10:20:38 10 saat 20 dakika 38 saniye shared the Denny's dream. This trauma institutionalized a permanent state of emergency at Nvidia. 10:20:46 10 saat 20 dakika 46 saniye With the remaining team, Jensen funneled every scent into the Reval 128. 10:20:52 10 saat 20 dakika 52 saniye They abandoned quads and embraced Microsoft's triangles with a vengeance. 10:20:58 10 saat 20 dakika 58 saniye When it launched in 1997, the Reva 128 was 400% faster than anything else on the market. 10:21:07 10 saat 21 dakika 7 saniye It was a dive catch of epic proportions. 10:21:10 10 saat 21 dakika 10 saniye Nvidia was no longer just a survivor. It had become a hunter. 10:21:16 10 saat 21 dakika 16 saniye But as Jensen looked at the horizon, he [music] saw 70 rivals waiting to kill him. The war was only beginning. 10:21:31 10 saat 21 dakika 31 saniye The success of the Reval 128 was a dive catch, but it placed Nvidia in the middle of a slaughterhouse. 10:21:40 10 saat 21 dakika 40 saniye By 1997, there were over 70 companies fighting for the soul of the 3D graphics market. 10:21:47 10 saat 21 dakika 47 saniye It was a commodity war where price cutting was the only weapon for most. 10:21:52 10 saat 21 dakika 52 saniye Jensen Huang realized that if Nvidia played by the industry's rules, [music] they would eventually be ground into dust. 10:22:00 10 saat 22 dakika He decided to break the laws of time. 10:22:04 10 saat 22 dakika 4 saniye The industry standard for developing a new chip was 18 to 24 months. Following the steady beat of Moore's law, Jensen 10:22:12 10 saat 22 dakika 12 saniye gathered his engineers and imposed a suicidal mandate. Nvidia would release a brand new groundbreaking architecture every 6 months. 10:22:24 10 saat 22 dakika 24 saniye It was a strategy of relentless execution. 10:22:28 10 saat 22 dakika 28 saniye By the time a competitor like 3dfx or S3 could react to one Nvidia [music] chip, Jensen had already launched two more. 10:22:37 10 saat 22 dakika 37 saniye This forced the competition into a permanent state of obsolescence. 10:22:42 10 saat 22 dakika 42 saniye To achieve this, Nvidia had to reinvent its internal engineering, running multiple design teams in parallel, a 10:22:49 10 saat 22 dakika 49 saniye massive financial risk that pushed the company to the edge of its operational capacity. In 1999, the war reached its 10:22:58 10 saat 22 dakika 58 saniye climax. Nvidia released the GeForce 256. 10:23:04 10 saat 23 dakika 4 saniye Jensen didn't just market it as a faster card. He coined a term that would redefine computing history, the GPU, 10:23:13 10 saat 23 dakika 13 saniye graphics processing unit. This wasn't just branding. Technically, the GeForce 256 10:23:21 10 saat 23 dakika 21 saniye moved the transformer and lighting calculations, the most heavy mathematical lifting of 3D off the CPU 10:23:28 10 saat 23 dakika 28 saniye and onto the chip itself. It was the birth of a new era. 10:23:33 10 saat 23 dakika 33 saniye This performance leap was so massive that Nvidia secured the prestigious contract for the original Microsoft 10:23:40 10 saat 23 dakika 40 saniye Xbox, receiving a crucial $200 million advance. 10:23:46 10 saat 23 dakika 46 saniye The 6-month cycle worked. By the early 2000s, the 70 competitors had been reduced to just two, Nvidia and ATI. 10:23:56 10 saat 23 dakika 56 saniye In a final act of dominance, Nvidia acquired the assets of its former idol and arch rival 3dfx in 2000. 10:24:06 10 saat 24 dakika 6 saniye Jensen had cleared the board. He was the undisputed king of gaming. But at the 10:24:13 10 saat 24 dakika 13 saniye very moment of his greatest triumph, he began to look at the high performance computing market. He realized that the 10:24:20 10 saat 24 dakika 20 saniye GPU's massive parallel math could do more than just draw pixels. It could solve the world's most complex problems. 10:24:28 10 saat 24 dakika 28 saniye The seeds of CUDA and the $10 billion gamble were being planted. 10:24:41 10 saat 24 dakika 41 saniye By 2006, Nvidia was the undisputed king [music] of the gaming world. But Jensen Hang was restless. He [music] realized 10:24:50 10 saat 24 dakika 50 saniye that the same parallel processing power that rendered pixels for World of Warcraft could be used to solve the world's most complex mathematical problems. 10:25:00 10 saat 25 dakika He launched CUDA, compute unified [music] device architecture. It was a declaration of war against the CPUcentric [music] world. 10:25:10 10 saat 25 dakika 10 saniye The goal was simple yet insane. 10:25:13 10 saat 25 dakika 13 saniye Transform every NVIDIA GPU into a general purpose supercomput. 10:25:18 10 saat 25 dakika 18 saniye But this decision [music] came with a staggering cost. Jensen mandated that every single GPU Nvidia manufactured 10:25:26 10 saat 25 dakika 26 saniye from the high-end workstation cards [music] to the cheapest laptop chips must include the extra transistors and 10:25:33 10 saat 25 dakika 33 saniye hardware logic to support CUDA. [music] Wall Street was horrified. 10:25:40 10 saat 25 dakika 40 saniye For nearly a decade, Nvidia [music] spent billions, estimated at over 10 billion dollars in cumulative R&D on a 10:25:49 10 saat 25 dakika 49 saniye software platform that almost no one was using. Profit margins, [music] which once sat comfortably high, were sacrificed at the altar of this vision. 10:25:59 10 saat 25 dakika 59 saniye Analysts mocked the strategy, [music] calling it the bridge to nowhere. During the 2008 [music] financial crisis, 10:26:07 10 saat 26 dakika 7 saniye Nvidia's market cap plummeted and the company was once again staring into the abyss. [music] But Jensen wasn't just building 10:26:16 10 saat 26 dakika 16 saniye hardware. He was building a software moat. He sent Nvidia engineers to universities around the world, [music] 10:26:24 10 saat 26 dakika 24 saniye helping professors teach parallel programming using CUDA. 10:26:29 10 saat 26 dakika 29 saniye He was seeding the ground. [music] While competitors like Intel and AMD focused on making faster chips, Jensen was building [music] an entire language. 10:26:39 10 saat 26 dakika 39 saniye By the time a developer learned CUDA, they were locked in. Switching to a competitor wouldn't just mean buying a 10:26:46 10 saat 26 dakika 46 saniye new chip. It would mean rewriting millions of lines of code. 10:26:52 10 saat 26 dakika 52 saniye Year after year, Jensen defended CUDA in boardrooms and earning calls. He practiced what he calls long-term 10:27:00 10 saat 27 dakika commitment to a vision, even when the data didn't yet support it. He was waiting for a killer app for accelerated computing. 10:27:09 10 saat 27 dakika 9 saniye He didn't know what it would be. [music] But he knew that as data grew exponentially, the serial processing of the CPU would eventually fail. 10:27:18 10 saat 27 dakika 18 saniye The silence of the Cuda winter was about to be broken. 10:27:23 10 saat 27 dakika 23 saniye In a lab at the University of Toronto, 10:27:25 10 saat 27 dakika 25 saniye [music] 10:27:25 10 saat 27 dakika 25 saniye a PhD student named Alex Kresvki was about to feed a neural network called Alexet into those Nvidia GPUs. 10:27:34 10 saat 27 dakika 34 saniye The big bang of artificial intelligence was seconds away, and Jensen Huang was the only person on Earth who had already built the engine to power it. 10:27:52 10 saat 27 dakika 52 saniye The year was 2012. While the world saw just another academic competition, Jensen Hang saw the spark that would ignite a global revolution. 10:28:03 10 saat 28 dakika 3 saniye A neural network called AlexNet, powered by NVIDIA GPUs, crushed the competition 10:28:09 10 saat 28 dakika 9 saniye in image recognition. It was the big bang of deep learning. 10:28:15 10 saat 28 dakika 15 saniye Jensen didn't just celebrate, he pivoted the entire company. He realized that the $10 billion gamble on CUDA had finally found its soul, artificial intelligence. 10:28:26 10 saat 28 dakika 26 saniye [music] 10:28:28 10 saat 28 dakika 28 saniye This pivot transformed Nvidia from a graphics card company into the foundational engine of the world's most powerful data centers. 10:28:38 10 saat 28 dakika 38 saniye [music] Jensen's vision was no longer about drawing pixels. It was about generative AI. 10:28:45 10 saat 28 dakika 45 saniye By the time Chat GPT launched [music] in late 2022, Nvidia didn't just have a head start. 10:28:52 10 saat 28 dakika 52 saniye They were the only ones at the starting line. 10:28:56 10 saat 28 dakika 56 saniye Jensen acted [music] with a speed that terrified his competitors. He didn't just wait for orders. He re-engineered Nvidia's entire road map. 10:29:06 10 saat 29 dakika 6 saniye In 2016, he personally delivered the first Nvidia DGX1, [music] the world's first AI supercomput 10:29:14 10 saat 29 dakika 14 saniye in a box to a then small nonprofit called OpenAI. 10:29:19 10 saat 29 dakika 19 saniye He was very clear, [music] this will change the world. 10:29:26 10 saat 29 dakika 26 saniye Technically, this period was about specialization. [music] Nvidia began adding tensor cores to its chips. These weren't for graphics. They 10:29:34 10 saat 29 dakika 34 saniye were designed specifically for the deep learning math [music] that powers neural networks. 10:29:40 10 saat 29 dakika 40 saniye Nvidia was no longer just making a faster graphics card. It was building a specialized [music] brain. 10:29:46 10 saat 29 dakika 46 saniye By 2017, the momentum was unstoppable. 10:29:50 10 saat 29 dakika 50 saniye Every major [music] tech giant was building AI labs and they all had one thing in common. They were built on Nvidia's stack. 10:29:59 10 saat 29 dakika 59 saniye This was the era when the software mode became a fortress. Thousands of researchers were now writing [music] their doctoral thesis on CUDA. 10:30:08 10 saat 30 dakika 8 saniye If a competitor wanted to challenge Nvidia, they [music] wouldn't just need a better chip. They would have to convince the world's brightest minds to 10:30:17 10 saat 30 dakika 17 saniye forget everything [music] they had learned. 10:30:20 10 saat 30 dakika 20 saniye But as the AI revolution took hold, [music] an unexpected shadow emerged. A new craze called Bitcoin and Ethereum 10:30:28 10 saat 30 dakika 28 saniye began to [music] consume Nvidia's supply. To the world, Nvidia looked invincible. But internally, Jensen was 10:30:36 10 saat 30 dakika 36 saniye wary. [music] Jensen knew that every bubble eventually bursts. 10:30:41 10 saat 30 dakika 41 saniye This period of explosive accidental growth from crypto miners was creating [music] a shadow over the company's true mission, 10:30:49 10 saat 30 dakika 49 saniye setting the stage for a highstakes legal battle over corporate transparency and a financial storm that would test the very 10:30:56 10 saat 30 dakika 56 saniye foundations of his leadership. [music] In 2018, Nvidia was riding a wave that 10:31:07 10 saat 31 dakika 7 saniye looked like a miracle but felt [music] like a mirage. 10:31:11 10 saat 31 dakika 11 saniye The explosion of cryptocurrency mining had created an insatiable hunger for [music] GeForce cards. 10:31:18 10 saat 31 dakika 18 saniye To the outside world, Nvidia's revenue was reaching historic heights. [music] However, beneath the surface, a 10:31:25 10 saat 31 dakika 25 saniye dangerous ambiguity was growing. Jensen Huang insisted that the growth was driven by a gaming renaissance, but the 10:31:32 10 saat 31 dakika 32 saniye [music] reality was more volatile. The mirage evaporated in [music] late 2018. 10:31:39 10 saat 31 dakika 39 saniye The crypto winter arrived and [music] the demand for mining chips vanished overnight. 10:31:46 10 saat 31 dakika 46 saniye Nvidia was left with a massive surplus of inventory and [music] the market's reaction was brutal. The company's stock price plummeted by 28% in a single day. 10:31:57 10 saat 31 dakika 57 saniye The invincible architect of AI was suddenly facing a crisis of credibility. 10:32:03 10 saat 32 dakika 3 saniye This financial collapse ignited a highstakes legal battle that would eventually reach the steps of the US Supreme Court. 10:32:11 10 saat 32 dakika 11 saniye A group of institutional investors filed a class action lawsuit [music] alleging that Jensen Huang had deliberately misled the market. The core of the case rested on a single devastating word. 10:32:22 10 saat 32 dakika 22 saniye [music] 10:32:24 10 saat 32 dakika 24 saniye Cienta, the intent to deceive. 10:32:28 10 saat 32 dakika 28 saniye The accusation was sharp. [music] Investors claimed that internal Nvidia reports clearly showed over a billion dollars in revenue attributed [music] to 10:32:36 10 saat 32 dakika 36 saniye gamers was actually coming from crypto miners. 10:32:40 10 saat 32 dakika 40 saniye Jensen fought back, defending his intellectual honesty and arguing that the expert opinions used against him were nothing [music] more than speculation. 10:32:49 10 saat 32 dakika 49 saniye This battle known as petition number 23-970 [music] became a landmark moment for Silicon 10:32:56 10 saat 32 dakika 56 saniye Valley, questioning how much a CEO must disclose [music] when their technology accidentally conquers a market they didn't intend to lead. 10:33:06 10 saat 33 dakika 6 saniye While lawyers argued in Washington, Jensen was already looking past the wreckage. He didn't let the legal storm 10:33:13 10 saat 33 dakika 13 saniye or the inventory crisis slowed down his ultimate plan. He doubled down on the data center, [music] acquiring Melanox 10:33:20 10 saat 33 dakika 20 saniye for $7 billion to control the highways between his chips. He was preparing for a world where AI [music] wouldn't just 10:33:27 10 saat 33 dakika 27 saniye be a research project, but the operating system of the entire [music] planet. The storm of 2018 had been a warning. 10:33:36 10 saat 33 dakika 36 saniye The era of generative AI was about to provide the [music] answer. 10:33:46 10 saat 33 dakika 46 saniye By 2022, the world had changed. The launch of Chat GPT signaled the arrival of the 10:33:53 10 saat 33 dakika 53 saniye generative AI era, and Nvidia was the only company prepared to power it. 10:33:59 10 saat 33 dakika 59 saniye But as Jensen Huang stood on the brink of total market dominance, a new wall was built, not by a competitor, but by 10:34:07 10 saat 34 dakika 7 saniye the US government. Washington imposed strict export controls [music] on high-end AI chips. For Nvidia, the stakes were astronomical. 10:34:18 10 saat 34 dakika 18 saniye According to the geographical revenue data, [music] China accounted for approximately 20% to 25% of the company's total business. 10:34:28 10 saat 34 dakika 28 saniye Overnight, Jensen had to navigate a geopolitical minefield, redesigning [music] chips specifically to comply with regulations while trying to keep 10:34:36 10 saat 34 dakika 36 saniye his most important market from slipping [music] away. 10:34:41 10 saat 34 dakika 41 saniye Jensen's answer to the geopolitical and technical pressure was the Blackwall architecture. 10:34:46 10 saat 34 dakika 46 saniye If the H100 was a spark, Blackwell 10:34:49 10 saat 34 dakika 49 saniye [music] 10:34:50 10 saat 34 dakika 50 saniye was a sun. Packing an incredible 208 billion transistors, it delivered [music] up to 30 times the performance of its predecessor for certain AI tasks. 10:35:01 10 saat 35 dakika 1 saniye But Blackwell represented a deeper strategic shift. Nvidia was no longer just a chipmaker. [music] 10:35:09 10 saat 35 dakika 9 saniye Jensen was now building entire AI factories. 10:35:13 10 saat 35 dakika 13 saniye By integrating Melanox's networking technology, he controlled the highways that allowed thousands of chips to talk [music] to each other as if they were a single giant brain. 10:35:24 10 saat 35 dakika 24 saniye This system on a cluster approach meant that even if a competitor produced a faster individual chip, they couldn't compete with the sheer efficiency of the Nvidia ecosystem. 10:35:36 10 saat 35 dakika 36 saniye The financial results were staggering. 10:35:38 10 saat 35 dakika 38 saniye By early 2024, Nvidia's data center revenue had surged to over $47 billion, 10:35:46 10 saat 35 dakika 46 saniye a 217% increase in a single year. The company was operating with 78.4% 10:35:53 10 saat 35 dakika 53 saniye gross margins. [music] Profit levels usually reserved for software giants, not hardware manufacturers. 10:36:01 10 saat 36 dakika 1 saniye On June 18th, 2024, Nvidia became the most valuable company on the planet. 10:36:08 10 saat 36 dakika 8 saniye Yet, even as he stood at the summit, Jensen refused to relax. He looked the 60-year history of semiconductors, the 10:36:16 10 saat 36 dakika 16 saniye rise and fall of Intel, the cycles of Samsung and TI, and he knew that being on top was the most dangerous place to 10:36:24 10 saat 36 dakika 24 saniye be. His next challenge wouldn't just be about chips. It would be about giving AI a physical body. 10:36:38 10 saat 36 dakika 38 saniye In 2024, Jensen Huang had already conquered the digital world, but his eyes were fixed on [music] a new frontier, the physical one. He declared 10:36:48 10 saat 36 dakika 48 saniye that the next wave of AI would be physical AI. Intelligence that doesn't just process text or images, [music] but understands the laws of physics. 10:36:58 10 saat 36 dakika 58 saniye Everything that moves from autonomous cars to humanoid robots would eventually be powered by an Nvidia brain. 10:37:06 10 saat 37 dakika 6 saniye This identifies it as the third pillar of Nvidia's future. To win this race, Jensen isn't just building chips. He is building the omniverse. 10:37:18 10 saat 37 dakika 18 saniye This is a digital world where robots are trained millions [music] of times in a virtual simulation before they ever step into a real factory. 10:37:27 10 saat 37 dakika 27 saniye By the time a robot starts its job, it has already lived a thousand lifetimes of experience. Jensen's strategy is a 10:37:35 10 saat 37 dakika 35 saniye total vertical integration. He [music] is transforming Nvidia into a provider of AI factories. 10:37:42 10 saat 37 dakika 42 saniye He believes that in the future, every company will have two factories, one [music] that produces physical goods and a digital one that produces intelligence. 10:37:52 10 saat 37 dakika 52 saniye With the Melanox networking, high-speed highways, and [music] the CUDA software fortress, Jensen has ensured that the entire infrastructure [music] of this 10:38:00 10 saat 38 dakika new industrial revolution runs on Nvidia. When asked about his legacy, Jensen [music] doesn't talk about stock 10:38:08 10 saat 38 dakika 8 saniye prices or trillions of dollars. He talks about material sciences and scientific [music] discovery. 10:38:15 10 saat 38 dakika 15 saniye He believes AI will give humans superpowers, helping us solve climate change, cure diseases, and handle the 10:38:23 10 saat 38 dakika 23 saniye dangerous and mundane tasks so we can focus on what truly makes us human, curiosity. 10:38:34 10 saat 38 dakika 34 saniye By 2025, the world had entered a state of compute geopolitics. 10:38:40 10 saat 38 dakika 40 saniye Nvidia was no longer just a company. It had become a strategic resource similar to oil or grain. The launch of the 10:38:49 10 saat 38 dakika 49 saniye Blackwell B200 hadn't [music] just met demand. It had ignited a global scramble. Nations like Japan, France, 10:38:57 10 saat 38 dakika 57 saniye and the UAE began building sovereign AI clouds. Realizing that depending on a few Silicon Valley giants for 10:39:04 10 saat 39 dakika 4 saniye intelligence [music] was a national security risk. 10:39:08 10 saat 39 dakika 8 saniye But as 2025 progressed, a new whisper began to haunt the industry. The wall. 10:39:15 10 saat 39 dakika 15 saniye For years, AI progress relied on scaling laws. The idea that more data and more GPUs would inevitably lead to more 10:39:24 10 saat 39 dakika 24 saniye intelligence. However, in 2026, the returns are starting to diminish. Data centers are becoming so massive, they 10:39:33 10 saat 39 dakika 33 saniye require their own dedicated nuclear power plants. and the lowhanging fruit of internet data has been exhausted. 10:39:41 10 saat 39 dakika 41 saniye Jensen's response to the wall is typically defiant. He pivoted the industry towards synthetic data and 10:39:48 10 saat 39 dakika 48 saniye reasoning models. In 2026, Nvidia's focus has shifted from simply training 10:39:54 10 saat 39 dakika 54 saniye AI to inference at scale. The goal is no longer just to build a model that knows everything, [music] but to build a 10:40:03 10 saat 40 dakika 3 saniye system that thinks through a problem for days, if necessary, using [music] massive clusters of GPUs to reach a breakthrough. 10:40:12 10 saat 40 dakika 12 saniye The competition in 2026 has never been fiercer. Nvidia's biggest customers, Amazon, Google, and Microsoft, have 10:40:20 10 saat 40 dakika 20 saniye become its most dangerous rivals, pouring billions into their own custom AI chips to escape the NVIDIA attacks. 10:40:28 10 saat 40 dakika 28 saniye Yet, the software mode remains unreached. While others build chips, Jensen is building the entire ecosystem, 10:40:36 10 saat 40 dakika 36 saniye the networking, the libraries, and the pre-trained models that make a competitor's hardware feel like a relic before it even leaves the factory. 10:40:47 10 saat 40 dakika 47 saniye In this era, Jensen Huang has become one of the world's most influential diplomat. [music] He navigates a world where the power grid is the new 10:40:55 10 saat 40 dakika 55 saniye bottleneck and where a single shipment of chips can determine the economic future of a country. 10:41:02 10 saat 41 dakika 2 saniye The trillion dollar question of 2026 is no longer if AI will change the world, but who will own the infrastructure of that change. 10:41:16 10 saat 41 dakika 16 saniye The story of Nvidia is often told as a series of lucky breaks or inevitable triumphs. But as we look at the empire 10:41:24 10 saat 41 dakika 24 saniye Jensen Hang [music] has built, the reality is far more deliberate and far more precarious. 10:41:31 10 saat 41 dakika 31 saniye In 2026, [music] the company stands at the center of the greatest industrial shift in human history. Yet for Jensen, the valuation 10:41:40 10 saat 41 dakika 40 saniye of three, four, or 5 trillion is a lagging indicator. The true metric is the oxygen. 10:41:48 10 saat 41 dakika 48 saniye Throughout his journey, from the dish pits of Denny's to the halls of the Supreme Court, Jensen has maintained a philosophy of intellectual [music] honesty. 10:41:58 10 saat 41 dakika 58 saniye He admits when the technology is wrong. 10:42:01 10 saat 42 dakika 1 saniye He pivots when the market shifts. And he invests billions when the world [music] calls him a fall. He has turned a 10:42:08 10 saat 42 dakika 8 saniye semiconductor company into a geopolitical superpower, a software fortress, and the primary architect of a new form of life. 10:42:18 10 saat 42 dakika 18 saniye Critics ask if Nvidia [music] is a bubble waiting to burst, or if the scaling laws of AI will eventually hit a dead end. But Jensen doesn't [music] 10:42:26 10 saat 42 dakika 26 saniye operate on the timeline of a stock market cycle. He operates on the timeline of human evolution. 10:42:34 10 saat 42 dakika 34 saniye He isn't just [music] selling chips. He is selling the marginal cost of intelligence, making the most valuable resource in [music] the universe so 10:42:42 10 saat 42 dakika 42 saniye abundant that it changes the very definition of what is possible. 10:42:49 10 saat 42 dakika 49 saniye Jensen often says that he wakes [music] up every morning with the same feeling he had in 1993. 10:42:54 10 saat 42 dakika 54 saniye the feeling that the company [music] is going out of business. It is this productive paranoia [music] that prevents the cyclical trap that claim the giants of the past. 10:43:05 10 saat 43 dakika 5 saniye He doesn't want to be the king of a legacy. He wants to be the architect of a future that hasn't even been [music] imagined yet. 10:43:16 10 saat 43 dakika 16 saniye Run, don't walk. Either you are running for food or you are running from being food. In the era of the digital brain, 10:43:25 10 saat 43 dakika 25 saniye the race has only just [music] begun. 10:44:57 10 saat 44 dakika 57 saniye At the edge of the world, in a country with more sheep than people, one of the most powerful men in Silicon Valley 10:45:04 10 saat 45 dakika 4 saniye built an escape hatch. Not a vacation home, not a tax shelter, a contingency plan. 10:45:14 10 saat 45 dakika 14 saniye In 2011, a billionaire quietly secured citizenship in New Zealand after spending just days in the country. A 10:45:23 10 saat 45 dakika 23 saniye legal backdoor, a geopolitical [music] lifeboat deep in the rugged terrain of New Zealand's South Island, Peter Teal owns 10:45:32 10 saat 45 dakika 32 saniye a vast private estate, remote, secluded, and [music] far from the centers of power. 10:45:39 10 saat 45 dakika 39 saniye While most billionaires buy yachts [music] or private islands feel secured something more strategic, New Zealand 10:45:47 10 saat 45 dakika 47 saniye citizenship [music] and a vast estate in one of the most remote democracies on Earth. The 10:45:55 10 saat 45 dakika 55 saniye purchase price for [music] this geopolitical insurance policy. 10:45:59 10 saat 45 dakika 59 saniye In 2011, Theel obtained New Zealand citizenship after spending just 12 days in the country over the previous 2 [music] years. 10:46:09 10 saat 46 dakika 9 saniye a process that normally requires years of residency. 10:46:14 10 saat 46 dakika 14 saniye The investment that secured this [music] exceptional pathway, approximately $7 million in [music] local assets and business investments. 10:46:25 10 saat 46 dakika 25 saniye The centerpiece, a 477 acre estate near Lake Wanaka, purchased 10:46:32 10 saat 46 dakika 32 saniye for 13.5 million New Zealand, about $10 million. 10:46:38 10 saat 46 dakika 38 saniye When New Zealand media exposed the deal in 2017, [music] it sparked a national scandal. Hi, Benedict. Nice to talk to you again. 10:46:47 10 saat 46 dakika 47 saniye So, when we last spoke, you told us that Peter Teal was granted citizenship after having only visited New Zealand [music] four times for an unknown number of days 10:46:56 10 saat 46 dakika 56 saniye because the documents had that information redacted. Right. 10:47:01 10 saat 47 dakika 1 saniye Politicians called it citizenship for sale. Opposition leaders demanded investigations, 10:47:08 10 saat 47 dakika 8 saniye but Theel had already achieved his objective, a legal escape hatch in the world's most politically stable 10:47:15 10 saat 47 dakika 15 saniye democracy, a geopolitical insurance policy that money [music] can buy. 10:47:23 10 saat 47 dakika 23 saniye Why would a man who helped build the [music] digital future prepare for the collapse of the physical one? What does 10:47:31 10 saat 47 dakika 31 saniye he see [music] that others don't? Yes, it's the uh 1 Thessalonians 5:3, the uh 10:47:38 10 saat 47 dakika 38 saniye the the slogan of the Antichrist is peace and safety. And so, which is nothing wrong with peace and safety, but 10:47:45 10 saat 47 dakika 45 saniye uh you have to sort of imagine that it resonates very differently in a world where the stakes are so absolute, where the stakes are so extreme, [music] where 10:47:53 10 saat 47 dakika 53 saniye the you know the alternative to peace and safety is, [music] you know, Armageddon and the destruction of all things. 10:48:02 10 saat 48 dakika 2 saniye He is one of the most polarizing figures in Silicon Valley. To some, a visionary genius who saw the future early. To 10:48:11 10 saat 48 dakika 11 saniye others, the shadow financier of movements and candidates [music] who challenge liberal democratic norms. 10:48:18 10 saat 48 dakika 18 saniye This is not fear. This is strategy. 10:48:22 10 saat 48 dakika 22 saniye For decades, Peter Theel has made the same bet over and over again. Bet against consensus. better against the crowd, bet against the system itself. 10:48:36 10 saat 48 dakika 36 saniye To understand why he built a fortress at the end of the earth, we have to go back to a childhood of constant displacement. 10:48:43 10 saat 48 dakika 43 saniye [music] 10:48:45 10 saat 48 dakika 45 saniye To a chessboard where consensus meant nothing, to a company that [music] tried to replace money and another that learned to see everything. 10:48:56 10 saat 48 dakika 56 saniye But the estate is [music] more than a luxury retreat. It is a fortress designed for civilizational uncertainty. 10:49:04 10 saat 49 dakika 4 saniye Off-grid power systems, advanced security infrastructure, multiple evacuation routes through the mountains. 10:49:13 10 saat 49 dakika 13 saniye Not built for comfort, built for continuity. 10:49:17 10 saat 49 dakika 17 saniye While the world debates progress, [music] Peter Theel is preparing for a different possibility. 10:49:23 10 saat 49 dakika 23 saniye Not how to build the future, how to survive it. 10:49:31 10 saat 49 dakika 31 saniye The architect of dissident total estimated value of the contingency infrastructure 20 to $30 million. 10:49:42 10 saat 49 dakika 42 saniye Not for lifestyle, not for prestige, but for the day the system he helped build no longer holds. 10:49:50 10 saat 49 dakika 50 saniye He didn't build this because he panics easily. He built it because he has always believed that the crowd is wrong 10:49:57 10 saat 49 dakika 57 saniye and the future belongs to those willing [music] to stand apart from it. Every fortress begins as an idea and Peter 10:50:06 10 saat 50 dakika 6 saniye Theel has been building intellectual fortresses since he was a child. 10:50:17 10 saat 50 dakika 17 saniye Before he was a billionaire, before he funded political outsiders, before he built machines that could see 10:50:24 10 saat 50 dakika 24 saniye everything, he was a boy who never stayed in one place long enough to believe the world made sense. 10:50:31 10 saat 50 dakika 31 saniye So, he searched for a world where the rules didn't change. He found it on a chess board. 10:50:39 10 saat 50 dakika 39 saniye To understand Peter Theel, you must understand what it means to be a permanent [music] outsider. 10:50:46 10 saat 50 dakika 46 saniye Born in Frankfurt, West Germany, Peter Theel spent part of his early childhood in southwest Africa, now Namibia, before 10:50:54 10 saat 50 dakika 54 saniye growing up mainly in the United States between Ohio and California. 10:51:00 10 saat 51 dakika Before he was a teenager, he had already experienced life on multiple continents, never staying long enough to feel fully at home. 10:51:10 10 saat 51 dakika 10 saniye He didn't have a hometown. He didn't have a tribe. [music] He only had his own mind. And in that isolation, he 10:51:19 10 saat 51 dakika 19 saniye found a language that didn't require a passport. Chess. 10:51:26 10 saat 51 dakika 26 saniye For a child who changed continents before he [music] could even make friends, the outside world was unpredictable noise. But the board, the 10:51:35 10 saat 51 dakika 35 saniye board was the only place where the rules didn't change depending on the country. 10:51:42 10 saat 51 dakika 42 saniye His father, an engineer trained in a culture of precision and systems thinking, 10:51:49 10 saat 51 dakika 49 saniye passed on a belief that reality could be understood and optimized. 10:51:55 10 saat 51 dakika 55 saniye While other children sought to fit in, Peter sought the edge. He learned that the consensus of the crowd is usually a distraction. 10:52:05 10 saat 52 dakika 5 saniye If everyone is running toward the ball, you run toward where the ball is going to be. 10:52:12 10 saat 52 dakika 12 saniye Chess is the ultimate antidote to consensus. 10:52:16 10 saat 52 dakika 16 saniye In a crowd, you can hide behind a popular opinion. In chess, you are either right [music] or you are dead. There is no middle 10:52:25 10 saat 52 dakika 25 saniye ground. There is no social construction of the board. 10:52:29 10 saat 52 dakika 29 saniye He became a serious tournament chess player drawn to a world where rules were fixed, outcomes were earned, and consensus meant [music] nothing. 10:52:40 10 saat 52 dakika 40 saniye Mid1 1980s Stanford University. 10:52:44 10 saat 52 dakika 44 saniye To the world this was the peak of American meritocracy. To Theel it was a factory of conformity. 10:52:53 10 saat 52 dakika 53 saniye While his classmates were debating how to change the world through activism, Theel was wondering why they all sounded 10:53:00 10 saat 53 dakika exactly the same. He saw the multiculturalism movement not as progress but as a new form of fundamentalism. 10:53:09 10 saat 53 dakika 9 saniye Stanford in the late 1980s was ground zero for America's culture wars, battles over multiculturalism, speech, and the purpose of higher education. 10:53:21 10 saat 53 dakika 21 saniye Field believed the university was drifting toward ideological conformity, that certain views were becoming socially, if not formally, offlimits. 10:53:31 10 saat 53 dakika 31 saniye Here, his investment methodology was born. Identify what the crowd considers sacred and question it. 10:53:41 10 saat 53 dakika 41 saniye If everyone says identity diversity is the most important thing, you argue that intellectual diversity is the only thing that matters. 10:53:53 10 saat 53 dakika 53 saniye He wasn't looking for friends. He was looking to recruit others who like him did not fear being hated. 10:54:01 10 saat 54 dakika 1 saniye He founded the Stanford Review. 10:54:04 10 saat 54 dakika 4 saniye The paper quickly became one of the most controversial publications on campus, 10:54:09 10 saat 54 dakika 9 saniye [music] 10:54:10 10 saat 54 dakika 10 saniye attacking what field saw as intellectual monoculture and political group think. 10:54:17 10 saat 54 dakika 17 saniye He saw that the smartest people in the country were all competing for the same narrow prizes, thinking the same narrow thoughts. 10:54:26 10 saat 54 dakika 26 saniye He did what every top student [music] does. He followed the track. After Stanford Law, he secured a prestigious 10:54:35 10 saat 54 dakika 35 saniye federal appalate clerkship, the kind of credential that opens every elite [music] door in America. 10:54:42 10 saat 54 dakika 42 saniye After his clerkship, he joined Sullivan and Cromwell in New York, one of the most elite law [music] firms in the world. On paper, he had reached the 10:54:51 10 saat 54 dakika 51 saniye summit. Wall Street was his great negative epiphany. 10:54:57 10 saat 54 dakika 57 saniye But from his perspective, the brightest graduates in America were locked in brutal competition for careers they didn't even seem to want. 10:55:07 10 saat 55 dakika 7 saniye It looked like Renee Gerard's theory made flesh, a system where everyone desired the same prize simply because 10:55:14 10 saat 55 dakika 14 saniye everyone else did. Wall Street looked to Theo like a laboratory of mimemetic rivalry. He realized that if he won that 10:55:23 10 saat 55 dakika 23 saniye race, his prize would be becoming the man in the office next door. A copy of a copy. The day he lost the opportunity to 10:55:32 10 saat 55 dakika 32 saniye clerk for the US Supreme Court wasn't a defeat. It was his liberation. 10:55:38 10 saat 55 dakika 38 saniye He lasted less than a year. But Theo's first venture after leaving law was a humbling lesson in failure. A lesson 10:55:47 10 saat 55 dakika 47 saniye that would shape everything that came after. 10:55:52 10 saat 55 dakika 52 saniye In 1996, he launched Theel Capital Management, [music] a hedge fund focused on currency trading and macroeconomic derivatives. 10:56:04 10 saat 56 dakika 4 saniye The strategy was to make big directional bets on [music] interest rates, inflation expectations, and foreign 10:56:11 10 saat 56 dakika 11 saniye exchange movements. Initial capital raised $1 million mostly from Stanford 10:56:18 10 saat 56 dakika 18 saniye connections who believed in the chess prodigy turned lawyer turned financia. 10:56:26 10 saat 56 dakika 26 saniye The result was spectacular failure. 10:56:29 10 saat 56 dakika 29 saniye Within the first year, the fund had lost significant capital. Industry estimates [music] suggest losses between 30 and 40% of the initial investment pool. 10:56:40 10 saat 56 dakika 40 saniye Investors fled. Some demanded their remaining money back immediately. 10:56:47 10 saat 56 dakika 47 saniye The reputation among finance professionals, the people he [music] had walked away from at Sullivan and Cromwell, took a serious hit. 10:56:56 10 saat 56 dakika 56 saniye He was no longer the Stanford genius. He was just another failed trader. 10:57:03 10 saat 57 dakika 3 saniye But this failure taught him the most important lesson of his career. Competition is for losers. 10:57:11 10 saat 57 dakika 11 saniye Do not compete in crowded markets where everyone is making the same trades with the same information [music] and the same tools. 10:57:20 10 saat 57 dakika 20 saniye Wall Street was full of extremely smart people doing the same macro trades, reading the same economic reports, betting on the same currency movements. 10:57:31 10 saat 57 dakika 31 saniye It was a zero someum game played by thousands of nearly identical [music] players. 10:57:38 10 saat 57 dakika 38 saniye He needed to find a space where the rules [music] were still being written, where being first mattered more than 10:57:45 10 saat 57 dakika 45 saniye being best, where a monopoly position was still available. He needed technology. 10:57:53 10 saat 57 dakika 53 saniye And from the ashes of the capital management, a new philosophy was born. 10:57:59 10 saat 57 dakika 59 saniye If you want to create lasting value, you have to build a monopoly. 10:58:04 10 saat 58 dakika 4 saniye This became his investing mantra and it would make him billions. 10:58:13 10 saat 58 dakika 13 saniye Theel walked away from the firm and went back to California not to start a tech empire but to try trading then to launch 10:58:21 10 saat 58 dakika 21 saniye a hedge fund. It failed. The system he had rejected did not welcome him back as a prodigy. It treated him like a nobody. 10:58:31 10 saat 58 dakika 31 saniye That failure would become the last lesson before his real beginning. But he learned something. If you play the 10:58:39 10 saat 58 dakika 39 saniye system game as everyone else, you've already lost. 10:58:44 10 saat 58 dakika 44 saniye The chess master was done with the board. He was ready to build his own. 10:58:56 10 saat 58 dakika 56 saniye So this is an ATM. What we're going to do is transform the traditional banking industry. I do not fit the picture of a banker. 10:59:04 10 saat 59 dakika 4 saniye [music] 10:59:06 10 saat 59 dakika 6 saniye X.com. This is Julie. 10:59:07 10 saat 59 dakika 7 saniye Raising $50 million is a matter of making a series of phone calls and the money is there. 10:59:14 10 saat 59 dakika 14 saniye I've sunk the [music] great majority of of my net worth into X.com, which is the new banking and mutual [music] funds company on the internet that I've 10:59:21 10 saat 59 dakika 21 saniye started. December 1998, Peter Theel co-founds a company called 10:59:28 10 saat 59 dakika 28 saniye Conffinity with Max Levchin, a brilliant Ukrainianborn programmer, and Luke Nosk, a fellow Stanford review illuminous. 10:59:38 10 saat 59 dakika 38 saniye Initial funding, $300,000 scraped together from friends, family, and fellow libertarian true believers from the Stamford [music] days. 10:59:47 10 saat 59 dakika 47 saniye The original product idea, digital wallets on Palm Pilot handheld devices. 10:59:54 10 saat 59 dakika 54 saniye The vision was that people would beam money to each other using [music] infrared ports on the Palm Pilots 11:00:01 11 saat 1 saniye in coffee shops, at restaurants, persontoerson, bypassing banks entirely. 11:00:10 11 saat 10 saniye Total users after 6 months of operation, 12 people. literally 12. 11:00:18 11 saat 18 saniye Most of them were employees and their friends testing the system. It was a complete and utter flop. The technology 11:00:27 11 saat 27 saniye worked, but nobody cared. Nobody wanted it. March 2000, Confinity pivots hard 11:00:35 11 saat 35 saniye and launches a new feature, email-based money transfers. 11:00:40 11 saat 40 saniye You send money to any email address. The recipient gets a [music] notification, creates an account, and the money is there. Simple, instant, revolutionary. 11:00:51 11 saat 51 saniye The name of this new service, PayPal. 11:00:55 11 saat 55 saniye Within weeks, user growth exploded at a rate nobody had ever seen in financial services. 11:01:02 11 saat 1 dakika 2 saniye Month one, 10,000 users. Month three, 100,000 users. Month 6, 1 million users. 11:01:12 11 saat 1 dakika 12 saniye Month 12, 5 million users. [music] This was the fastest user adoption rate 11:01:20 11 saat 1 dakika 20 saniye in the entire history of financial services. Faster than credit cards, faster than checking accounts, faster than anything. 11:01:29 11 saat 1 dakika 29 saniye But here is what most people do not know about PayPal's growth. Here is the secret that the mythology leaves out. 11:01:38 11 saat 1 dakika 38 saniye PayPal's explosive user acquisition was not organic. It was not word of mouth. 11:01:46 11 saat 1 dakika 46 saniye It was not viral in the natural sense. 11:01:48 11 saat 1 dakika 48 saniye [music] 11:01:51 11 saat 1 dakika 51 saniye They literally bought their users with cash. The strategy was elegantly simple and brutally expensive. 11:02:00 11 saat 2 dakika Sign up for a PayPal account, get $10 deposited instantly. Refer a friend who 11:02:06 11 saat 2 dakika 6 saniye signs up gets another $10. Your friend also gets $10. Cost per acquisition 20 11:02:14 11 saat 2 dakika 14 saniye to $40 per user depending on how many [music] referrals each user generated. 11:02:21 11 saat 2 dakika 21 saniye Monthly cash burn rate at peak growth 10 to 12 million just vanishing into user acquisition. 11:02:30 11 saat 2 dakika 30 saniye By late 2000, PayPal [music] was spending 60 to 70 million annually just to buy users with cash incentives. 11:02:38 11 saat 2 dakika 38 saniye [music] 11:02:40 11 saat 2 dakika 40 saniye They were hemorrhaging money at a terrifying rate. Investors were panicking. [music] Board members were demanding answers. 11:02:50 11 saat 2 dakika 50 saniye How long can you sustain spending $10 million a month buying users? [music] But Theel had done the mathematics. He had run the numbers obsessively. 11:03:02 11 saat 3 dakika 2 saniye Each acquired user was worth $100 to $200 in [music] lifetime transaction fee revenue through the PayPal network. They were buying $100 bills for $20 bills. 11:03:14 11 saat 3 dakika 14 saniye [music] 11:03:15 11 saat 3 dakika 15 saniye It was either genius or insanity depending on whether the math actually worked. The believed it would work. He 11:03:24 11 saat 3 dakika 24 saniye bet everything on it. [music] But there was a problem. a major problem. Another company was doing the exact same thing. 11:03:34 11 saat 3 dakika 34 saniye X.com, a finance company founded by Elon Musk with money from his Zip 2 exit and 11:03:41 11 saat 3 dakika 41 saniye a vision for online banking that was nearly identical [music] to PayPal's. 11:03:47 11 saat 3 dakika 47 saniye Two companies, same idea, same market, both burning massive amounts of cash at [music] completely unsustainable rates. 11:03:57 11 saat 3 dakika 57 saniye Total funding raised between both companies over $100 million. 11:04:03 11 saat 4 dakika 3 saniye Combined monthly cash burn rate over $20 million [music] time until both companies simultaneously ran out of money less than 6 months. 11:04:15 11 saat 4 dakika 15 saniye The merger was inevitable. 11:04:18 11 saat 4 dakika 18 saniye X.com and Confinity merged into a single entity. The combined company kept the PayPal name because users had already 11:04:27 11 saat 4 dakika 27 saniye adopted it. The brand had momentum. Elon Musk became chief executive officer of the merged company for 5 months. 11:04:40 11 saat 4 dakika 40 saniye October 2000. While Elon Musk was on his honeymoon, the board of directors led by Peter Theel and other Confinity founders 11:04:49 11 saat 4 dakika 49 saniye held an emergency meeting and voted Musk out as CEO. 11:04:54 11 saat 4 dakika 54 saniye The official reason cited strategic disagreements over technology platform. Musk wanted to use Microsoft software. 11:05:04 11 saat 5 dakika 4 saniye The Confinity engineers believed in Unix based systems. The actual reason Theel 11:05:10 11 saat 5 dakika 10 saniye wanted control, full control. This was his company now. 11:05:17 11 saat 5 dakika 17 saniye Peter Theel became chief executive officer of PayPal. Elon Musk [music] remained a major shareholder, but his operational control was finished. 11:05:29 11 saat 5 dakika 29 saniye The two men, both future billionaires, both future power brokers, had their first battle. feel one. At its core, 11:05:39 11 saat 5 dakika 39 saniye [music] PayPal ran on a simple idea that turned into a powerful engine. 11:05:44 11 saat 5 dakika 44 saniye Every time money moved, PayPal took a small cut, 2.9% plus 30 cents per transaction. If that money crossed 11:05:53 11 saat 5 dakika 53 saniye borders, the fee climbed to between 2 1/2 and 4%. 11:05:58 11 saat 5 dakika 58 saniye Then there was the float. The cash sitting in PayPal's accounts between payments, [music] quietly earning interest for the 11:06:05 11 saat 6 dakika 5 saniye company. Tiny slices repeated millions of times. 11:06:11 11 saat 6 dakika 11 saniye By 2001, the numbers told the story of a system coming to life. Every single day, 11:06:18 11 saat 6 dakika 18 saniye 5 to8 million flowed through PayPal's network. Each month, that translated into 10 to$15 million in revenue. 11:06:28 11 saat 6 dakika 28 saniye But growth at this speed came at a cost. 11:06:31 11 saat 6 dakika 31 saniye Running the system, fighting fraud, scaling infrastructure, acquiring users was burning 20 to30 million every month. 11:06:42 11 saat 6 dakika 42 saniye The machine worked, it just wasn't profitable yet. 11:06:47 11 saat 6 dakika 47 saniye Late 2000, PayPal's data scientists discovered something crucial. 70% of all PayPal 11:06:55 11 saat 6 dakika 55 saniye transactions were happening on eBay auctions. 11:06:59 11 saat 6 dakika 59 saniye People buying and selling random items on the internet's largest marketplace were using PayPal to move money. The 11:07:07 11 saat 7 dakika 7 saniye strategic insight became immediately clear. Make PayPal the only payment method that eBay users trust completely. 11:07:17 11 saat 7 dakika 17 saniye Own that market, become [music] indispensable. 11:07:21 11 saat 7 dakika 21 saniye The execution buyer protection guarantees that eBay's own payment system did not offer 11:07:29 11 saat 7 dakika 29 saniye instant payment transfers with no 7-day check clearing period. 11:07:36 11 saat 7 dakika 36 saniye Fraud detection algorithms that were better than credit card companies. Email notifications for every transaction. 11:07:44 11 saat 7 dakika 44 saniye Simple, clean user interface. 11:07:48 11 saat 7 dakika 48 saniye By mid 2001, the strategy was working beyond all projections. 50% of all eBay 11:07:55 11 saat 7 dakika 55 saniye auctions accepted PayPal as a payment method. PayPal was processing $50 million daily in eBay related 11:08:04 11 saat 8 dakika 4 saniye transactions alone. And then eBay noticed and eBay was not happy. 11:08:12 11 saat 8 dakika 12 saniye eBay launched their own competing service called Billpoint and attempted to kill PayPal through the marketplace. 11:08:20 11 saat 8 dakika 20 saniye They promoted Billoint in search rankings. They penalized sellers who only accepted PayPal. They made it 11:08:28 11 saat 8 dakika 28 saniye harder to display the PayPal logo. It was war. PayPal's response was total war. 11:08:35 11 saat 8 dakika 35 saniye Temporarily lower transaction fees to undercut Bill. 11:08:41 11 saat 8 dakika 41 saniye Guarantee faster money transfers than eBay could offer. Invest heavily in superior $30 million deployed in 2001 11:08:50 11 saat 8 dakika 50 saniye fraud protection. Massive marketing spending alone. 11:08:55 11 saat 8 dakika 55 saniye By early 2002, the war was over. PayPal controlled 65% of eBay's payment market. 11:09:03 11 saat 9 dakika 3 saniye Bill point at barely 10%. 11:09:07 11 saat 9 dakika 7 saniye eBay executives looked at the numbers and reached the conclusion, if you cannot beat them, buy them. July 2002, 11:09:17 11 saat 9 dakika 17 saniye eBay acquires PayPal for $1.5 billion in eBay stock. 11:09:24 11 saat 9 dakika 24 saniye Peter Theal owned approximately $3.7% of PayPal at the time of the acquisition. 11:09:30 11 saat 9 dakika 30 saniye His equity stake was worth $55 million in eBay stock. After taxes, he walked 11:09:37 11 saat 9 dakika 37 saniye away with approximately $40 million in liquid wealth. At age 34, he had won his first billion dollar game. 11:09:47 11 saat 9 dakika 47 saniye But the money was not the most valuable thing he extracted from PayPal. The real value was the network, the PayPal mafia, 11:09:56 11 saat 9 dakika 56 saniye the name they gave themselves. And it was not ironic, it was descriptive. The core team that Theel assembled at PayPal 11:10:05 11 saat 10 dakika 5 saniye would go on to create some of the most valuable companies in human history. 11:10:11 11 saat 10 dakika 11 saniye Elon Musk, Tesla Market Cap, $650 billion. 11:10:17 11 saat 10 dakika 17 saniye SpaceX, estimated value, $150 billion. 11:10:22 11 saat 10 dakika 22 saniye [music] Reed Hoffman, LinkedIn, sold to Microsoft for $26 billion. Steve Chen, Chad Hurley, Jawed Kareem. 11:10:32 11 saat 10 dakika 32 saniye YouTube sold to Google for 1.65 billion, now worth over 100 billion. 11:10:41 11 saat 10 dakika 41 saniye [music] 11:10:42 11 saat 10 dakika 42 saniye Jeremy Stoppleman and Russell Simmons, Yelp, peaked at $3 billion market cap. 11:10:48 11 saat 10 dakika 48 saniye David Saxs, Yammer, sold [music] to Microsoft for $1.2 billion. 11:10:54 11 saat 10 dakika 54 saniye later founded Craft Ventures. Max Levchin, a firm $12 billion company. 11:11:02 11 saat 11 dakika 2 saniye Also co-founded Yelp. Keith Rabo, COO of Square, partner at Founders Fund, investor in dozens of unicorns. 11:11:14 11 saat 11 dakika 14 saniye Roloff Bofer, partner at Seoia Capital, led investments in Instagram, YouTube, Tumblr, MongoDB, Eventbrite. 11:11:26 11 saat 11 dakika 26 saniye Total value created by the PayPal mafia across all their companies, conservatively estimated at over $200 11:11:34 11 saat 11 dakika 34 saniye billion in combined market capitalization. 11:11:39 11 saat 11 dakika 39 saniye Field's ownership stakes across this extended network through direct investments and fund positions estimated at 2 to4 billion. 11:11:49 11 saat 11 dakika 49 saniye This was not just a company that got acquired. This was the creation of the most powerful business cartel in Silicon Valley history. 11:12:01 11 saat 12 dakika 1 saniye But what made PayPal different was not the technology. Not really. The technology was impressive but not miraculous. 11:12:10 11 saat 12 dakika 10 saniye What made PayPal different was the culture, the religion of extreme meritocracy. 11:12:17 11 saat 12 dakika 17 saniye Theo's hiring criteria were brutally specific. 11:12:22 11 saat 12 dakika 22 saniye One, raw intelligence, high test scores, ability to solve complex puzzles, proof 11:12:29 11 saat 12 dakika 29 saniye you could think better than everyone else. Two, intensity. Are you willing to work 100hour weeks? 11:12:38 11 saat 12 dakika 38 saniye Are [music] you willing to sacrifice everything else in your life for the mission? 11:12:42 11 saat 12 dakika 42 saniye Three, missionary zeal. Do you actually believe we are changing the world or are you here for a paycheck? 11:12:52 11 saat 12 dakika 52 saniye Four, loyalty to the tribe. Will you protect the other members? Will you put the group above yourself? 11:13:00 11 saat 13 dakika Average employee age at PayPal 25 years old. Average work week 80 to 100 hours. 11:13:09 11 saat 13 dakika 9 saniye Office culture libertarian, anti-regulation, contrarian, anti-establishment. 11:13:16 11 saat 13 dakika 16 saniye They called themselves the mafia specifically because loyalty mattered more than credentials, 11:13:25 11 saat 13 dakika 25 saniye more than degrees, more than previous experience. Theel's operating principle stated explicitly and repeatedly, 11:13:34 11 saat 13 dakika 34 saniye talented people do not want to work with people who [music] are less talented than they are. So every new hire must be 11:13:42 11 saat 13 dakika 42 saniye more talented than the average current employee. Otherwise, we are diluting the [music] talent pool. This created a 11:13:50 11 saat 13 dakika 50 saniye self-reinforcing escalation, an arms race of hiring. Every new person raised [music] the bar. The standards became 11:13:59 11 saat 13 dakika 59 saniye higher and higher. Only the absolute best could get in. And once you were in, 11:14:06 11 saat 14 dakika 6 saniye you were family. But here is what most people forget about PayPal. [music] Here is the original vision that got 11:14:13 11 saat 14 dakika 13 saniye erased from the mythology. PayPal was supposed [music] to destroy the Federal Reserve. It was supposed to undermine 11:14:21 11 saat 14 dakika 21 saniye state control of currency. That was the actual mission. That was why Peter Theel, the libertarian [music] ideologue, cared so much. 11:14:32 11 saat 14 dakika 32 saniye The original vision laid out in Theo's founding documents create a new digital currency outside government control. 11:14:41 11 saat 14 dakika 41 saniye Enable true peer-to-peer transactions globally [music] without state intermediaries. 11:14:47 11 saat 14 dakika 47 saniye Undermine the state monopoly [music] on money creation and management. 11:14:52 11 saat 14 dakika 52 saniye build the financial infrastructure for a stateless society. 11:14:57 11 saat 14 dakika 57 saniye What actually happened? To become mainstream, [music] to actually scale, PayPal had to compromise every single founding 11:15:04 11 saat 15 dakika 4 saniye principle. They had to integrate with the traditional banking system, the enemy. They had to comply with know your 11:15:13 11 saat 15 dakika 13 saniye customer and anti-moneyaundering regulations, government control. 11:15:19 11 saat 15 dakika 19 saniye They had to partner with credit card companies. The old system they wanted to destroy. They had to get licensed in every single state. Regulatory capture. 11:15:30 11 saat 15 dakika 30 saniye They had to report suspicious transactions to federal authorities. 11:15:34 11 saat 15 dakika 34 saniye Surveillance. By 2002, PayPal was regulated exactly like a [music] bank. 11:15:41 11 saat 15 dakika 41 saniye Partnered with banks, dependent on banks for all core functionalities. The libertarian revolution had become just 11:15:49 11 saat 15 dakika 49 saniye another fintech company playing by the government's rules. [music] The learned the most important lesson of 11:15:56 11 saat 15 dakika 56 saniye his career from PayPal's failure to achieve [music] its revolutionary mission. You cannot disrupt the system 11:16:03 11 saat 16 dakika 3 saniye from inside the system. If you want to change the rules, you cannot ask permission from the people who wrote 11:16:10 11 saat 16 dakika 10 saniye them. This lesson would shape everything he did next. Palanteer, Facebook, his political investments, everything. 11:16:23 11 saat 16 dakika 23 saniye The PayPal acquisition [music] was not an ending. It was a beginning, the start of something much larger. The pattern 11:16:31 11 saat 16 dakika 31 saniye that emerged over the next 20 [music] years. PayPal veterans leave and start new companies in different sectors. 11:16:38 11 saat 16 dakika 38 saniye Theel invests early as angel investor [music] or through founders fund. PayPal mafia members join each other's boards 11:16:46 11 saat 16 dakika 46 saniye [music] of directors. Cross investment between all their venture funds creates [music] alignment. Preferential access 11:16:53 11 saat 16 dakika 53 saniye to deal flow because of network relationships. 11:16:57 11 saat 16 dakika 57 saniye Shared intelligence [music] about markets, technology, and opportunities. 11:17:02 11 saat 17 dakika 2 saniye Real examples of how the network compounds. Reed Hoffman introduces Theel to Mark Zuckerberg in 2004. 11:17:11 11 saat 17 dakika 11 saniye Theel invests $500,000 in Facebook, eventually makes over $1 billion. 11:17:18 11 saat 17 dakika 18 saniye Roloff Botha [music] joins Sequoia Capital and invests in multiple Theelbacked companies, creating 11:17:25 11 saat 17 dakika 25 saniye reciprocal deal flows. [music] David Saxs hosts high dollar fundraisers for Theo's [music] political candidates, mixing business and politics seamlessly. 11:17:38 11 saat 17 dakika 38 saniye Max Levchim provides seed capital for Palanteer and serves as advisor lending credibility. 11:17:46 11 saat 17 dakika 46 saniye This network effect multiplier is precisely [music] how Theel turned $55 million from PayPal into over $5 billion in net worth today. 11:17:56 11 saat 17 dakika 56 saniye [music] 11:17:58 11 saat 17 dakika 58 saniye The PayPal mafia is not a cute nickname. 11:18:01 11 saat 18 dakika 1 saniye It is not a metaphor. It is the most successful [music] organized business cartel in Silicon Valley history. 11:18:08 11 saat 18 dakika 8 saniye A self-reinforcing [music] network of wealth, power, and influence that has shaped the entire technology industry 11:18:15 11 saat 18 dakika 15 saniye for two decades. And Peter Theal sits at the center of it all. The Godfather. 11:18:29 11 saat 18 dakika 29 saniye After PayPal, Peter Theel was a man with a billion dollars and a dangerous secret. While other investors were 11:18:38 11 saat 18 dakika 38 saniye looking at spreadsheets [music] and profit margins, Theel was looking at the human soul through the eyes of his mentor, Renee Gerard. 11:18:47 11 saat 18 dakika 47 saniye Gerard taught him a terrifying truth. Human beings don't know what they want. 11:18:53 11 saat 18 dakika 53 saniye We are mimemetic creatures. We don't desire things for themselves. We desire them because other people [music] desire 11:19:01 11 saat 19 dakika 1 saniye them. We are copy machines disguised as individuals. August 2004. 11:19:10 11 saat 19 dakika 10 saniye Facebook has been online for exactly 6 months. It started as a Harvard dorm project and has now expanded to several college campuses. 11:19:21 11 saat 19 dakika 21 saniye The metrics that Zuckerberg shows Theel total registered users [music] 200,000 11:19:28 11 saat 19 dakika 28 saniye almost entirely college students daily active user [music] rate 70 to 80% engagement 11:19:37 11 saat 19 dakika 37 saniye unprecedented in web services revenue $0 11:19:41 11 saat 19 dakika 41 saniye [music] 11:19:42 11 saat 19 dakika 42 saniye no business model yet valuation Zuckerberg is asking for $5 million every single professional venture 11:19:51 11 saat 19 dakika 51 saniye capitalist in Silicon Valley has passed on Facebook. Every major firm has looked into it and said no. The reasons they gave it is just a college directory. 11:20:02 11 saat 20 dakika 2 saniye Limited market. Fster has already 5 million users [music] and is the leader in social networking. 11:20:10 11 saat 20 dakika 10 saniye MySpace is dominant with 8 million users and growing [music] fast. There is no obvious business model or revenue stream. [music] 11:20:19 11 saat 20 dakika 19 saniye Mark Zuckerberg is too young, too inexperienced, too risky as a founder. 11:20:26 11 saat 20 dakika 26 saniye Peter Theel saw something completely different, something that had nothing to do with technology. 11:20:33 11 saat 20 dakika 33 saniye Theel had spent years studying Renee Gerard's mimemetic theory, the philosophical framework that [music] 11:20:40 11 saat 20 dakika 40 saniye would shape his entire investment approach, the core idea, humans do not have original desires. We desire what 11:20:49 11 saat 20 dakika 49 saniye other people desire. We learn what to want by watching other people [music] want. Desire is imitative. Desire is social. Desire is mimemetic. 11:21:03 11 saat 21 dakika 3 saniye When Theel looked at Facebook, he did not see a technology platform for connecting friends. He saw something far 11:21:10 11 saat 21 dakika 10 saniye more powerful. He saw the perfect mimemetic desire machine. the insight that made [music] Theel invest. Social 11:21:18 11 saat 21 dakika 18 saniye networks do not create value by connecting people. That is not where the money is. The money is in comparison. 11:21:26 11 saat 21 dakika 26 saniye The money is in making people compare themselves to each other constantly. 11:21:31 11 saat 21 dakika 31 saniye You see your friend's vacation photos, you want a better vacation. You see someone's job promotion announcement, 11:21:39 11 saat 21 dakika 39 saniye you want higher status. You see someone's relationship photos, you want romance. 11:21:47 11 saat 21 dakika 47 saniye You see someone getting likes and comments, you want validation. 11:21:52 11 saat 21 dakika 52 saniye You see someone's perfect life, you feel your own life is inadequate. Facebook was not selling connections. 11:22:01 11 saat 22 dakika 1 saniye Facebook was selling envy. And envy, Theel understood from Gerard, is the most powerful economic force in human history. 11:22:11 11 saat 22 dakika 11 saniye The desire for what others have. They need to keep up. The fear of being left behind. Infinite envy creates infinite 11:22:20 11 saat 22 dakika 20 saniye demand. Infinite demand creates infinite value. September 2004. 11:22:28 11 saat 22 dakika 28 saniye Peter Theal wires $500,000 to Facebook incororated. 11:22:34 11 saat 22 dakika 34 saniye The deal terms 10.2% equity ownership in the company. A board seat giving him governance rights and inside information. 11:22:45 11 saat 22 dakika 45 saniye Right of first refusal on all future funding rounds. Post money valuation of exactly $5 million. 11:22:54 11 saat 22 dakika 54 saniye Mark Zuckerberg's reaction after the deal closed. This guy actually gets it. He understands what we are building. 11:23:02 11 saat 23 dakika 2 saniye Silicon Valley's reaction. Peter Theal just threw away half a million dollars on a college kid's website. This will be his biggest failure. 11:23:13 11 saat 23 dakika 13 saniye What happened next rewrote the history of venture capital. 2004 end of year. 11:23:20 11 saat 23 dakika 20 saniye 200,000 users grew to 1 million users. 11:23:25 11 saat 23 dakika 25 saniye Five times growth in 4 months. 2005 1 million users becomes 5.5 million 11:23:33 11 saat 23 dakika 33 saniye users. 2006 5.5 million users becomes 12 million users. 2007 12 million users 11:23:43 11 saat 23 dakika 43 saniye exploded to 50 million users. 2008 50 million users doubles to 100 million users. 11:23:52 11 saat 23 dakika 52 saniye 2009 100 million users becomes 350 million users. growth rate. The user base was 11:24:01 11 saat 24 dakika 1 saniye doubling every 6 to9 months for five consecutive years. 11:24:06 11 saat 24 dakika 6 saniye This growth curve had never been seen before in business history. Not even close. As Facebook grew, its valuation 11:24:15 11 saat 24 dakika 15 saniye grew and Peter Theel's stake grew with it. [music] May 2005, 11:24:22 11 saat 24 dakika 22 saniye Axel Partners invests $12.7 million at $100 million valuation. 11:24:29 11 saat 24 dakika 29 saniye Field's 10.2% stake is now worth $10.2 million. He has achieved 20 times return in 9 months. 11:24:39 11 saat 24 dakika 39 saniye April 2006, Greylock Partners and Meritech Capital invest $27.5 million at $500 million valuation. 11:24:49 11 saat 24 dakika 49 saniye Theel stake is now worth $51 million, 100 times return on his original investment. 11:24:57 11 saat 24 dakika 57 saniye October 2007, Microsoft invests $240 million, valuing Facebook at $15 billion. 11:25:08 11 saat 25 dakika 8 saniye Theel stake is now worth $1.5 billion, a 300,000 times return in 3 years. 11:25:16 11 saat 25 dakika 16 saniye 2009 through 2011, multiple private sales and secondary transactions value Facebook at $50 billion. 11:25:27 11 saat 25 dakika 27 saniye The stake, if he had held everything, would be [music] worth $5 billion. 11:25:33 11 saat 25 dakika 33 saniye May 18th, 2012. 11:25:37 11 saat 25 dakika 37 saniye Facebook goes public at a market capitalization of $14 billion. 11:25:44 11 saat 25 dakika 44 saniye But Theel does not hold everything. He is strategic. He is tactical. He takes profits. At [music] the initial public 11:25:52 11 saat 25 dakika 52 saniye offering, Theel sells $640 million worth of shares immediately. 11:25:59 11 saat 25 dakika 59 saniye Over the following 6 months, he sells the remainder of his stake in carefully timed transactions. 11:26:06 11 saat 26 dakika 6 saniye Total cash realized from the Facebook investment approximately $1 billion. 11:26:12 11 saat 26 dakika 12 saniye Initial investment in August 2004, $500,000. 11:26:18 11 saat 26 dakika 18 saniye Total [music] cash realized by end of 2012, $1 billion. 11:26:24 11 saat 26 dakika 24 saniye Total return 2,000 times in 8 years. 11:26:28 11 saat 26 dakika 28 saniye This is the single greatest venture capital return in recorded history. Nothing else comes close. 11:26:36 11 saat 26 dakika 36 saniye But here is the twist. The haunting decision that Theel himself [music] admits keeps him awake at night. Selling was a mistake. 11:26:46 11 saat 26 dakika 46 saniye If Peter Theal had held his original 10.2% [music] stake and had never sold a single share, that stake at Facebook's 11:26:54 11 saat 26 dakika 54 saniye peak market capitalization in 2021 would have been worth 102 billion. 11:27:02 11 saat 27 dakika 2 saniye $12 [music] billion. 11:27:05 11 saat 27 dakika 5 saniye He left $100 billion on the table by selling early. 11:27:10 11 saat 27 dakika 10 saniye The himself admitted this publicly, [music] saying, "The mistake was not investing in Facebook. The mistake was selling Facebook. 11:27:20 11 saat 27 dakika 20 saniye I should have held longer. I should have believed more. It is the single most expensive decision of his life." Years 11:27:30 11 saat 27 dakika 30 saniye later in a Stanford [music] lecture, Theel explained his actual investment thesis, the real reason he invested. I 11:27:38 11 saat 27 dakika 38 saniye did not invest in Facebook because I thought [music] social networks were going to be big. I invested because I understood that humans will always want to be more like their [music] peers. 11:27:49 11 saat 27 dakika 49 saniye That desire is infinite. It never stops. It only intensifies. 11:27:55 11 saat 27 dakika 55 saniye An infinite desire creates infinite value. The mimemetic [music] theory made him a billionaire. 11:28:03 11 saat 28 dakika 3 saniye The mimemetic theory also [music] made him terrified of what he had helped create. 11:28:08 11 saat 28 dakika 8 saniye A machine that weaponizes human envy. A system that profits from making people feel [music] inadequate. 11:28:16 11 saat 28 dakika 16 saniye An algorithm that amplifies the worst aspects [music] of human nature. 11:28:21 11 saat 28 dakika 21 saniye Peter Theal helped build the most powerful behavior modification [music] system in human history. And then he cashed out for a billion dollars. 11:28:40 11 saat 28 dakika 40 saniye 2003 Peter Theel has a problem. It is the CIA's problem, but they think the 11:28:48 11 saat 28 dakika 48 saniye can solve it. His PayPal anti-fraud algorithms have become so sophisticated at detecting patterns in financial 11:28:56 11 saat 28 dakika 56 saniye transactions at finding terrorists trying to move money through banking systems that the CIA venture capital arm 11:29:05 11 saat 29 dakika 5 saniye in QEL requested a meeting. [music] The pitch from the CIA, can you build what you built for PayPal but for 11:29:14 11 saat 29 dakika 14 saniye national security? Can you find terrorists the way you found fraudsters? 11:29:20 11 saat 29 dakika 20 saniye May 2003, Peter Theel co-founds Palunteer Technologies with an unusual group of co-founders. 11:29:28 11 saat 29 dakika 28 saniye The founding team, Alex Karp, chief executive officer, Stanford Law Degree, philosophy, PhD from Frankfurt 11:29:37 11 saat 29 dakika 37 saniye University in Germany, former human rights lawyer who once worked on refugee cases. 11:29:44 11 saat 29 dakika 44 saniye an extremely odd choice to run a company that will become the most powerful surveillance technology provider on Earth. 11:29:52 11 saat 29 dakika 52 saniye Nathan Gettings, chief technology officer. PayPal's lead security engineer. Brilliant programmer. Joe 11:30:01 11 saat 30 dakika 1 saniye Lndale, a Stamford undergraduate student, barely 20 years old, one of the first Theel fellows. Steven Cohen, 11:30:10 11 saat 30 dakika 10 saniye PayPal's chief security architect. The person who actually built the fraud [music] detection algorithms. Initial 11:30:18 11 saat 30 dakika 18 saniye funding $2 million entirely from Peter Theel's personal capital. No outside investors yet. This is his project. 11:30:28 11 saat 30 dakika 28 saniye The mission statement. Build software that can find patterns in [music] massive data sets from disperate incompatible sources. 11:30:38 11 saat 30 dakika 38 saniye The kind of data that if intelligency agencies had been able to analyze it properly could have prevented September 11th, 2001. 11:30:49 11 saat 30 dakika 49 saniye The company name Palunteer named after the seeing stones in Lord of the Rings, the magical orbs that allow their 11:30:57 11 saat 30 dakika 57 saniye possessors to see anything happening anywhere in Middle Earth. Even the name revealed the ambition total information awareness. 11:31:07 11 saat 31 dakika 7 saniye the ability to see everything. 11:31:12 11 saat 31 dakika 12 saniye 2005, the CIA's venture capital arm in CQEL invest $2 million in Palanteer's series 11:31:20 11 saat 31 dakika 20 saniye A funding round. This was not just money. This was validation from the intelligence [music] community. A stamp 11:31:28 11 saat 31 dakika 28 saniye of approval from the most secretive, most paranoid organization in the US [music] government. 11:31:35 11 saat 31 dakika 35 saniye Initial contract value undisclosed. 11:31:39 11 saat 31 dakika 39 saniye Government intelligence contracts are classified by law, but industry analysts estimate the first CIA contracts were worth 5 to 10 million annually. 11:31:50 11 saat 31 dakika 50 saniye The product was called Palunteer [music] Gotham. The name itself was significant. Gotham, the dark city that needs Batman. 11:32:00 11 saat 32 dakika The city that needs surveillance to fight crime. core technical capabilities. 11:32:06 11 saat 32 dakika 6 saniye Integrate data [music] from dozens of incompatible government databases that were never designed to communicate with [music] each other. From hidden 11:32:14 11 saat 32 dakika 14 saniye connections between people, places, financial transactions, communications metadata, 11:32:22 11 saat 32 dakika 22 saniye visualize networks of relationships in ways human analysts could understand intuitively. 11:32:29 11 saat 32 dakika 29 saniye Predict future behavior and likely attack patterns based on historical data. Specific use cases for 11:32:36 11 saat 32 dakika 36 saniye intelligence agencies. Track terrorist cells across multiple countries. Map drug trafficking routes from production to distribution. 11:32:46 11 saat 32 dakika 46 saniye Identify money laundering networks moving funds for organized crime. 11:32:51 11 saat 32 dakika 51 saniye Predict insurgent attacks in Iraq and Afghanistan based on pattern recognition. It worked. The software 11:33:00 11 saat 33 dakika actually worked. By 2006, Palanteer software was being actively used in Iraq for counterinsurgency [music] 11:33:08 11 saat 33 dakika 8 saniye operations and in IED attack prediction. 11:33:13 11 saat 33 dakika 13 saniye Afghanistan for predicting Taliban leadership networks. Langley, Virginia at CIA headquarters for threat analysis. 11:33:22 11 saat 33 dakika 22 saniye FBI field officers nationwide for domestic terrorism investigation. 11:33:29 11 saat 33 dakika 29 saniye Early revenue growth told the story of Palunteers expanding reach. 2005 $3 million in revenue. Government 11:33:38 11 saat 33 dakika 38 saniye contracts [music] only. 2006 $10 million. 2007 11:33:44 11 saat 33 dakika 44 saniye $25 million. 2008 $50 million. First commercial clients added 2010 $150 11:33:54 11 saat 33 dakika 54 saniye million 2012 $400 million. By 2012, Palanteer had achieved something 11:34:02 11 saat 34 dakika 2 saniye extremely rare for a high- growth technology company. Profitability. 11:34:08 11 saat 34 dakika 8 saniye They were actually making money, not just burning venture capital. Customer revenue breakdown in 2012. 11:34:17 11 saat 34 dakika 17 saniye Government contracts, 60% of revenue, $240 million. 11:34:23 11 saat 34 dakika 23 saniye Commercial clients, 40% of revenue, $160 million. 11:34:30 11 saat 34 dakika 30 saniye May the 1st, 2011. Palanteer Software plays a role in the operation that kills Osama bin Laden. A role that remains 11:34:40 11 saat 34 dakika 40 saniye partially classified, but has been confirmed by multiple sources. 11:34:45 11 saat 34 dakika 45 saniye How Palanteer contributed. Palanteer Gotham integrated dozens of different intelligence sources. 11:34:53 11 saat 34 dakika 53 saniye CIA human intelligence on career networks. NSA signal intelligence including phone metadata and email communications patterns. 11:35:04 11 saat 35 dakika 4 saniye National Geospatial Intelligence Agency satellite imagery of potential compound locations. 11:35:11 11 saat 35 dakika 11 saniye historical pattern analysis of previous highv value target operations in Pakistan. 11:35:19 11 saat 35 dakika 19 saniye The system identified patterns and connections that human analysts working with separate databases that did not 11:35:26 11 saat 35 dakika 26 saniye communicate had missed. It narrowed the search area and helped confirm the identity of the Abotabad compound. 11:35:35 11 saat 35 dakika 35 saniye When asked about Palanteer's role in the bin Laden operation, Theel gave carefully worded response. I cannot 11:35:43 11 saat 35 dakika 43 saniye comment on specific operations or specific clients due to classification requirements, but I will say this. Tools 11:35:52 11 saat 35 dakika 52 saniye that help protect American lives and help intelligence professionals do their jobs better. That is our mission. 11:36:02 11 saat 36 dakika 2 saniye This single operation, this single success legitimized Palanteer's entire [music] value proposition to the national security establishment. 11:36:12 11 saat 36 dakika 12 saniye After bin Laden, the contracts poured in. 11:36:17 11 saat 36 dakika 17 saniye After the bin Laden success, Palanteer's government business exploded. Revenue growth from 2012 to 2015. 11:36:27 11 saat 36 dakika 27 saniye 2012, $400 million in revenue. 2013, $600 million. [music] 11:36:34 11 saat 36 dakika 34 saniye 2014, $900 million. 2015, $1.5 billion in 11:36:41 11 saat 36 dakika 41 saniye revenue. Major new contracts announced [music] publicly. 11:36:49 11 saat 36 dakika 49 saniye US Department of Defense, $222 million for a 3-year data integration platform contract. 11:36:58 11 saat 36 dakika 58 saniye US Army, $800 million for comprehensive data platform modernization across all 11:37:05 11 saat 37 dakika 5 saniye Army systems, US Special Operations Command, $444 million for targeting and intelligence 11:37:14 11 saat 37 dakika 14 saniye fusion, Department of Homeland Security, $240 million for border security and immigration enforcement [music] systems. 11:37:25 11 saat 37 dakika 25 saniye Palanteer had become the single most important software company in the entire US defense and intelligence establishment, [music] 11:37:33 11 saat 37 dakika 33 saniye more important than traditional defense contractors, more embedded in classified operations. 11:37:41 11 saat 37 dakika 41 saniye Simultaneously, Palunteer launched a commercial product called Palunteer Foundry [music] for private sector clients. The sales 11:37:49 11 saat 37 dakika 49 saniye pitch to corporate America. Your company has exactly the same problem as the CIA. 11:37:56 11 saat 37 dakika 56 saniye Too much data, too many incompatible systems, not enough insight. We can help you find the patterns you are missing. 11:38:05 11 saat 38 dakika 5 saniye Major commercial clients and estimated contract values. 11:38:11 11 saat 38 dakika 11 saniye JP Morgan Chase, over $100 million, fraud detection and financial crime 11:38:18 11 saat 38 dakika 18 saniye prevention. Morgan Stanley over $50 million risk management and regulatory 11:38:24 11 saat 38 dakika 24 saniye compliance. Airbus over $75 million supply chain optimization and manufacturing analytics. 11:38:34 11 saat 38 dakika 34 saniye Merc Pharmaceuticals over $60 million drug discovery analytics and clinical trial data integration. 11:38:43 11 saat 38 dakika 43 saniye BP over $80 million oil field production optimization and predictive maintenance. 11:38:52 11 saat 38 dakika 52 saniye Commercial revenue growth from 2015 to 2020. [music] In 2015, they got $600 million 11:39:00 11 saat 39 dakika commercial revenue. By 2016, the number was around $800 billion. In 2017, they 11:39:08 11 saat 39 dakika 8 saniye reached $1.1 billion in commercial revenue, and it became their peak year. 11:39:14 11 saat 39 dakika 14 saniye 2018 made them hit the $750 million mark, a temporary decline due to customer churn. 11:39:24 11 saat 39 dakika 24 saniye In 2019, revenue was around $745 million, and by 2020, they [music] reached $1.1 11:39:33 11 saat 39 dakika 33 saniye billion. Again, this recovery was driven by COVID analytics contracts. Palanteer 11:39:41 11 saat 39 dakika 41 saniye had created a business model with two enormous locked in customer bases, the US government and the largest corporations [music] in the world. 11:39:54 11 saat 39 dakika 54 saniye But Palanteer's work, especially for government agencies, attracted intense controversy and moral criticism. 11:40:03 11 saat 40 dakika 3 saniye In 2019, they secured a contract with ICE for $49 million. The purpose of the 11:40:10 11 saat 40 dakika 10 saniye contract was enforcement and removal [music] operations systems, meaning a software used to identify, 11:40:17 11 saat 40 dakika 17 saniye track, and process undocumented immigrants for deportation. 11:40:23 11 saat 40 dakika 23 saniye This project came with a controversy attached. The software was used during the family separation [music] policy at 11:40:30 11 saat 40 dakika 30 saniye the southern border. Children separated from their parents, families torn apart. 11:40:36 11 saat 40 dakika 36 saniye Palanteer Software helped make it operationally possible. Hundreds of Palunteer employees signed an internal 11:40:43 11 saat 40 dakika 43 saniye letter demanding the company cancel the ICE [music] contract. 11:40:49 11 saat 40 dakika 49 saniye They argued the company was enabling human rights [music] abuses. The Karp's response, absolute refusal. The contract would continue. 11:41:00 11 saat 41 dakika Alex K gave a public statement saying that they had chosen sides and that the company supported American institutions. 11:41:08 11 saat 41 dakika 8 saniye But this was not the only controversy Palanteer has faced. Palanteer worked alongside the NYPD with a contract 11:41:17 11 saat 41 dakika 17 saniye estimated between [music] 50 and $100 billion. The mission predictive policy. 11:41:25 11 saat 41 dakika 25 saniye They were asked to use historical crime data to predict where future crimes will occur and who is likely to commit them. 11:41:32 11 saat 41 dakika 32 saniye The controversy civil rights groups argued that system perpetuated racial bias. Minority neighborhoods were 11:41:41 11 saat 41 dakika 41 saniye flagged as high risk. Innocent people were [music] put under surveillance based on algorithmic predictions. 11:41:49 11 saat 41 dakika 49 saniye Joe Londale, Palunteer co-founder, had made a personal investment in Cambridge Analytica. 11:41:57 11 saat 41 dakika 57 saniye Multiple Palanteer employees on their own time helped Cambridge Analytica build data integration models. 11:42:06 11 saat 42 dakika 6 saniye Both companies use similar approaches to data harvesting and psychological profiling. 11:42:13 11 saat 42 dakika 13 saniye When the connection was exposed by journalists, Palanteer claimed there was no institutional relationship, just coincidental personal connections. 11:42:24 11 saat 42 dakika 24 saniye But the damage to Palanteer's reputation was done. The had built the panoptagon, the allseeing eye of corporate and government surveillance. 11:42:35 11 saat 42 dakika 35 saniye September the 30th, 2020. 11:42:39 11 saat 42 dakika 39 saniye After 17 years as a private company, one of the longest periods of private operation for any major tech company, 11:42:47 11 saat 42 dakika 47 saniye Palanteer finally goes public through a direct listing. 11:42:53 11 saat 42 dakika 53 saniye They went public at $10 per share and their market capitalization at market open was $16 billion. 11:43:02 11 saat 43 dakika 2 saniye By the first day, shares were down 5%. 11:43:05 11 saat 43 dakika 5 saniye The stock was initially a disappointment. 11:43:09 11 saat 43 dakika 9 saniye Investors were skeptical of the business model, worried about customer concentration, concerned about the controversy. 11:43:18 11 saat 43 dakika 18 saniye But then COVID 19 created massive new demand for Palanteer's capabilities. 11:43:24 11 saat 43 dakika 24 saniye 2020 to 2021, Palanteer wins enormous pandemic related government contracts with governments across the world. The 11:43:33 11 saat 43 dakika 33 saniye pandemic proved that governments needed Palanteer and the market responded. 11:43:39 11 saat 43 dakika 39 saniye By late 2021, Palanteer stock had exploded. $29 per share at 190% gain 11:43:48 11 saat 43 dakika 48 saniye from the direct listing price. Market capitalization $60 billion. 11:43:56 11 saat 43 dakika 56 saniye Peter Theal stake approximately 7% ownership worth 4.2 2 billion at the 11:44:03 11 saat 44 dakika 3 saniye peak. 2022, the tech crash hits Palanteer brutally hard. Stock prices 11:44:10 11 saat 44 dakika 10 saniye crash to $6 per share, down 8% from the peak. Market cap collapses to $13 billion. 11:44:20 11 saat 44 dakika 20 saniye The paper wealth from Palanteer evaporates. Billions gone. 2023 to 2024, the AI boom creates new opportunity. 11:44:31 11 saat 44 dakika 31 saniye Palanteer markets itself as the AI platform for governments and enterprises and they get major new contract wins. 11:44:39 11 saat 44 dakika 39 saniye The US Army invested $463 million for AI powered battlefield analytics and [music] decision support systems. 11:44:49 11 saat 44 dakika 49 saniye Palanteer stock recovered 25 to 30 per share by 2024. 11:44:56 11 saat 44 dakika 56 saniye As of 2024, Peter Theel's current Palanteer holdings are approximately 7% of all shares with a current value 11:45:04 11 saat 45 dakika 4 saniye ranging from 3.8 to $4.5 billion depending on daily stock price. 11:45:15 11 saat 45 dakika 15 saniye This makes Palunteer Field's single largest source of personal wealth. In 11:45:21 11 saat 45 dakika 21 saniye 2024, Palanteer's financial performance was divided between government and commercial revenue. The company's net 11:45:30 11 saat 45 dakika 30 saniye income was $2.5 billion annually. And as big as the number is, this might represent a future problem for the 11:45:38 11 saat 45 dakika 38 saniye company. If government budget cuts happen, Palanteer is extremely vulnerable. 11:45:44 11 saat 45 dakika 44 saniye Their entire business model depends on continued government spending. Here is Peter Theal's fundamental contradiction. 11:45:53 11 saat 45 dakika 53 saniye The paradox at the heart of everything he has built. He claims to be a libertarian who values individual freedom above all else. A man who 11:46:03 11 saat 46 dakika 3 saniye believes government power should be minimal. A man who wrote that freedom and democracy are incompatible. 11:46:10 11 saat 46 dakika 10 saniye Yet, he built the most powerful private surveillance technology company in [music] human history. A company that 11:46:18 11 saat 46 dakika 18 saniye gives governments and corporations unprecedented ability to monitor, track, predict, and control human behavior. 11:46:26 11 saat 46 dakika 26 saniye Palunteers technical capabilities include [music] realtime tracking of individuals across multiple data sources and databases. 11:46:38 11 saat 46 dakika 38 saniye Predictive behavioral modeling that forecasts what people will do before they do it. Network analysis that maps 11:46:46 11 saat 46 dakika 46 saniye every person you have ever contacted through any medium. [music] Complete integration of financial 11:46:52 11 saat 46 dakika 52 saniye records, communication metadata, location history, and social relationship data into a single unified profile. 11:47:03 11 saat 47 dakika 3 saniye Field's defense of this contradiction was explaining that the alternative to Palanteer is not no surveillance. 11:47:12 11 saat 47 dakika 12 saniye The alternative is worse surveillance performed by incompetent government bureaucrats using decades old technology that does not work properly. 11:47:26 11 saat 47 dakika 26 saniye The critics's response [music] was obvious. They told Theo he had built the panopticon, the architecture of total surveillance. 11:47:36 11 saat 47 dakika 36 saniye A system allowing governments around the world to use their citizens information to control them, not a system to protect them, said the critics. 11:47:46 11 saat 47 dakika 46 saniye Palanteer now operates in dozens of countries worldwide. The United States, the United Kingdom, Germany, France, Australia, and even Japan. 11:47:57 11 saat 47 dakika 57 saniye The company has some controversial international clients, some confirmed, some alleged, but the total estimated 11:48:05 11 saat 48 dakika 5 saniye value of all global contracts lifetime, over $10 billion in contract value. 11:48:13 11 saat 48 dakika 13 saniye Palanteer is Peter Theel's most important company. Not because of its valuation, though that is substantial. 11:48:22 11 saat 48 dakika 22 saniye Not because of its revenue, though that is significant. Palanteer is important because it reveals the truth about 11:48:31 11 saat 48 dakika 31 saniye Theo's worldview. It is the bridge between his libertarian philosophy and his authoritarian reality. He claims to want freedom from government control. 11:48:43 11 saat 48 dakika 43 saniye But Palanteer gives governments unprecedented [music] control over their citizens. The resolution of this apparent 11:48:51 11 saat 48 dakika 51 saniye contradiction. Peter the believes in freedom for the elite and surveillance for everyone else. 11:49:01 11 saat 49 dakika 1 saniye In his vision of the world, there are rulers and there are the ruled. There are the people who make the decisions and the people who are managed. 11:49:11 11 saat 49 dakika 11 saniye Palanteer is the enforcement mechanism for that hierarchy. The technology that ensures the rulers can see everything. 11:49:20 11 saat 49 dakika 20 saniye the system that makes resistance impossible because privacy no longer exists. And Peter Theal sits at the 11:49:29 11 saat 49 dakika 29 saniye center of that eye, watching the world, seeing everything. The architect of the surveillance state. 11:49:41 11 saat 49 dakika 41 saniye In 2016, Peter Theel made an investment that every other major technology investor avoided. 11:49:50 11 saat 49 dakika 50 saniye While his peers in Silicon Valley were contributing millions to the opposing campaign, Theel wrote a check for $1.25 11:49:59 11 saat 49 dakika 59 saniye million to Donald Trump's [music] presidential campaign. 11:50:03 11 saat 50 dakika 3 saniye This was not ideology. This was portfolio diversification. 11:50:09 11 saat 50 dakika 9 saniye Feel has always invested in contrarian positions. [music] When everyone zigs, he zags. When consensus forms in one 11:50:19 11 saat 50 dakika 19 saniye direction, he looks for asymmetric opportunities in the other. The 2006 donation [music] gave him something 11:50:27 11 saat 50 dakika 27 saniye money usually cannot buy in Silicon Valley. Direct access to executive 11:50:33 11 saat 50 dakika 33 saniye [music] 11:50:33 11 saat 50 dakika 33 saniye power. The return on that $1.25 $25 million investment, a seat on the presidential transition 11:50:42 11 saat 50 dakika 42 saniye team, input on federal technology policy, direct communication channels to 11:50:49 11 saat 50 dakika 49 saniye the White House, credibility as a Washington power broker, and most measurably, [music] Palanteer's 11:50:58 11 saat 50 dakika 58 saniye government contracts increased substantially during this period. 11:51:03 11 saat 51 dakika 3 saniye But feels most significant political investments came in the 2022 midterm elections. 11:51:10 11 saat 51 dakika 10 saniye Two candidates, both former employees, both running for United States Senate. 11:51:17 11 saat 51 dakika 17 saniye The financial commitment was unprecedented in scale. 11:51:22 11 saat 51 dakika 22 saniye Vance had worked at Theel's venture capital firm before writing his best-selling memoir. Field's total financial commitment. 11:51:32 11 saat 51 dakika 32 saniye Direct campaign contribution $15 million. 11:51:37 11 saat 51 dakika 37 saniye Super PAC expenditures [music] $5 million. Combined investment $20 million. 11:51:44 11 saat 51 dakika 44 saniye This set a record as the largest single donor contribution to an individual Senate campaign in American history. The 11:51:54 11 saat 51 dakika 54 saniye outcome, Vance won by six percentage points. Masters had worked directly for 11:52:00 11 saat 52 dakika Theel as chief operating officer at Theel Capital. 11:52:05 11 saat 52 dakika 5 saniye Theel's financial commitment to his [music] campaign was a combined investment of $20 million, but unlike 11:52:12 11 saat 52 dakika 12 saniye Vance, Masters lost by 5 percentage points. 11:52:16 11 saat 52 dakika 16 saniye Theel's total 2022 midterm investment was over $40 million in two Senate races. Two different candidates that 11:52:25 11 saat 52 dakika 25 saniye [music] would have allowed him to be in direct touch with power at different chambers and stages. For context, the 11:52:33 11 saat 52 dakika 33 saniye average competitive Senate [music] race costs approximately $10 million total. 11:52:38 11 saat 52 dakika 38 saniye Peter Theal invested four times that [music] amount on two races. 11:52:45 11 saat 52 dakika 45 saniye It's July 2024. JD Vance is selected as the Republican vice presidential 11:52:52 11 saat 52 dakika 52 saniye candidate. From a pure investment analysis perspective, this transforms the return profile on Theo's $20 million 11:53:00 11 saat 53 dakika commitment. He has considered the potential financial implications if this ticket wins and he gets access to 11:53:09 11 saat 53 dakika 9 saniye executive branch decisionmaking for 8 years. influence over federal contract allocation across multiple agencies. 11:53:18 11 saat 53 dakika 18 saniye Input on technology regulation affecting the portfolio [music] companies. 11:53:26 11 saat 53 dakika 26 saniye If we consider what's the estimated [music] return on investment for Palanteer's government business, what we see is current annual government revenue of $1.5 billion. 11:53:38 11 saat 53 dakika 38 saniye potential additional contract value over eight years conservatively 5 to10 billion 11:53:48 11 saat 53 dakika 48 saniye and other defense companies in the network potential 3 to5 billion in contracts 11:53:56 11 saat 53 dakika 56 saniye regulatory treatment of cryptocurrency holdings value potentially in [music] tens of billions. 11:54:07 11 saat 54 dakika 7 saniye The theoretical return of those 20 million invested is potentially 15 to 20 billion captured across the portfolio. 11:54:16 11 saat 54 dakika 16 saniye That represents [music] a potential of 750 to 1,000 times return. By comparison, Theel's Facebook [music] investment returned 2,000 times. 11:54:28 11 saat 54 dakika 28 saniye To sum it up, the complete political spending of the from 2016 to 2022 is 70 to $80 million. 11:54:38 11 saat 54 dakika 38 saniye For context, Amazon spends 20 [music] million annually on lobbying. Meta spends 20 million annual on lobbying. 11:54:47 11 saat 54 dakika 47 saniye Google spends 12 [music] million annually on lobbying. Field's approach is different. Rather than ongoing 11:54:55 11 saat 54 dakika 55 saniye lobbying expenditures, he makes concentrated 677357