Milk Road AI Is OpenAI Losing the Race to Google? Why Compute Is About to Go Vertical w/ Duncan & Patrick
Dec 5, 2025
The conversation heats up as Duncan and Patrick probe whether OpenAI is falling behind Google, igniting a 'Code Red' within the company. They explore the implications of Gemini's release and how model wars could spark a compute supercycle. The hosts also dive into the world of AI-generated content, discussing the booming demand for video models and their impact on advertising. They scrutinize the differing monetization strategies of OpenAI and Anthropic, while contemplating the future of robotics and the societal effects of AI content saturation.
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Video AI Is Disrupting Production
- Video generation is already replacing expensive production workflows and creating new agencies on top of model providers.
- This will dramatically lower content costs and drive massive token and GPU demand across entertainment and advertising.
Absurd's Viral AI Commercials
- Duncan described Absurd making viral, election-timed ads that include internet personalities to increase shareability.
- Patrick noted Absurd used Google's VO 3.1 and acts as an AI agency layering creative direction on model credits.
Video Models Drive Compute Demand
- Video models like Google's VO 3.1 and OpenAI's Sora are primary drivers of new entertainment and ad products.
- Their rapid improvements will fuel enormous compute and token consumption across industries.