Episode 748: The Invisible AI Underbelly That No Marketer Knows About…Until Now (PART 1)

November 11, 2025

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Do you feel overwhelmed by the speed of AI advancements? The tech world is evolving rapidly, making it a challenge to keep up, especially with giants like Meta and Google leading the charge. AI is the future of digital marketing, and if you’re not adapting, you’re falling behind.

In this episode, we discuss the massive shift happening in marketing, fueled by AI. We break down how Silicon Valley’s biggest players are investing billions into AI and how that’s impacting everything from content creation to data analysis.

With new tools emerging every day, we talk about how creative diversification can boost your ad performance while giving you a competitive edge in the market. Tune in and let’s make sure you’re ready for the AI-powered future of marketing.

In this episode:

06:45 Why AI’s bubble is now and how to keep up

11:18 How AI is powering marketing innovation

15:55 Big tech and governments’ heavy investments in AI

21:15 Presentation of big tech’s AI investments

26:49 Wrap up and key takeaways

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READ THE TRANSCRIPT:

The Invisible AI Underbelly That No Marketer Knows About…Until Now (PART 1)

00:00:00:00 – 00:00:09:08
Lauren
So many facets of AI that I can’t keep up with it. The person in charge at meta can’t keep up with it. No one can. We just have to adopt it and integrate it into our lives.

00:00:09:08 – 00:00:12:22
Ralph
I don’t think people realize how big of a change this is.

00:00:12:22 – 00:00:13:00
Lauren
And

00:00:13:07 – 00:00:14:16
Ralph
Silicon Valley’s biggest companies,

00:00:14:16 – 00:00:16:14
Ralph
are already planning on pouring

00:00:16:14 – 00:00:17:17
Ralph
$400

00:00:18:10 – 00:00:20:22
Ralph
into artificial intelligence

00:00:20:22 – 00:00:27:04
Lauren
how you can leverage it for your own personal use case, as we continue to adopt the way we did to personal phones.

00:00:29:09 – 00:00:35:17
Ralph
All right, so before we get into today’s show, I just want to remind you that we are running a special. Right now, we only have seven of these left

00:00:35:17 – 00:00:38:21
Ralph
as of right now. We announced this to perpetual traffic

00:00:38:21 – 00:01:00:05
Ralph
little less than a week ago. We’ve already sold four of them. I think we’re on our way to selling a fifth, but we are offering something that no other agency on the planet is offering, which directly relates to today’s episode because it taps into all this AI stuff we’re going to be talking about today, and it is the creative diversification package that we’ve created over at tier 11.

00:01:00:05 – 00:01:13:15
Ralph
There’s only one way to succeed with Andromeda right now, and it’s through creative diversification with data with Capi imports. First click Copy Imports, which you also need to have in order to optimize the algorithm for the right sorts of things

00:01:13:15 – 00:01:14:16
Ralph
that we’re going to be talking about

00:01:14:16 – 00:01:18:14
Ralph
on today’s show, sort of the mechanics of why all this is happening.

00:01:18:14 – 00:01:18:22
Ralph
But

00:01:18:22 – 00:01:25:23
Ralph
what you really care about is performance for your advertising. So we are offering, through the end of the year, an insane package

00:01:25:23 – 00:01:42:19
Ralph
where you buy the creative diversification package, which is 30 plus ads, all the ten different ad formats, 5 to 6 ads every single week, every new week. And you get that ongoing as you can iterate and figure out what’s working best.

00:01:43:01 – 00:01:50:03
Ralph
We’ve talked about this many shows before. The best types of ads are the ones that are actually getting the most spend, not actually the ones that are getting the most conversions,

00:01:50:03 – 00:02:01:08
Ralph
and you get the media buying who knows how to manage those ads as well as the data behind it for free. So you buy the creative diversification package.

00:02:01:13 – 00:02:12:04
Ralph
You get the media buying and you get the tier 11 data suite for free. It’s the best package that we have ever offered as an agency. Hands down. Now, qualifications.

00:02:12:04 – 00:02:13:19
Ralph
You have to be comfortable

00:02:13:19 – 00:02:19:10
Ralph
with spending at least $10,000 on agency services

00:02:19:20 – 00:02:27:17
Ralph
and willing to spend upwards of 30 to $50,000 per month in spend. Otherwise, this stuff doesn’t work.

00:02:27:17 – 00:02:28:14
Ralph
This is for

00:02:28:14 – 00:02:34:01
Ralph
companies that are maybe a little bit more on the mature side, but that’s okay. Those are the ones that we’re sort of pre-qualifying here.

00:02:34:01 – 00:02:50:04
Ralph
set. To reiterate you buy the creative diversification package. You get the media buying in the tier 11 data suite for free. Like I said we have seven left as of right now, and you’ve got to be comfortable with spending at least $10,000 a month on agency services, which does not include ad spend.

00:02:50:09 – 00:02:51:14
Ralph
Check it out over at

00:02:51:14 – 00:02:56:07
Ralph
two 11.com/cd

00:02:56:07 – 00:03:09:15
Ralph
That’s tier 11.com/cd. Check it out today. Be one of the seven lucky businesses that get it before this offer is over by the end of the year. Now on today’s show.

00:03:09:22 – 00:03:21:02
Ralph
Hello, and welcome to the Virtual Traffic Podcast. This is your host, Ralph Burns, founder and CEO of tier 11, alongside my amazingly well-traveled co-host Lauren Ian.

00:03:21:03 – 00:03:23:18
Lauren
To ponder on this idea.

00:03:24:03 – 00:03:25:21
Ralph
For you supposed. Like, I think it’s.

00:03:25:21 – 00:03:26:19
Lauren
Essentially never and.

00:03:26:19 – 00:03:27:15
Ralph
Always say

00:03:27:15 – 00:03:31:08
Ralph
you’re never in a letter. We’re actually. Do you live now?

00:03:31:12 – 00:03:37:15
Lauren
I live where my suitcase is at the moment, and I just. I live in Orlando, my house in Orlando.

00:03:37:17 – 00:03:40:14
Ralph
Right in name only really.

00:03:40:16 – 00:03:55:04
Lauren
And now I’ve spent a little bit of time I just I’m on a West coast tour. That’s the hard part, right? Like, so I’ve been today I’m in Vegas, I’m in Austin and San Diego and at least Phoenix. Another time. I was in Utah, San Jose last week a lot.

00:03:55:06 – 00:04:05:07
Ralph
Well, you know, you, you get around today, you’re in Vegas. You’re at like a a luxury resort or a luxury like, retreat somewhere. Just live.

00:04:05:07 – 00:04:06:05
Lauren
And then.

00:04:06:07 – 00:04:07:18
Ralph
Where.

00:04:07:20 – 00:04:31:04
Lauren
It’s a fabulous Airbnb. The detail, I don’t know, I lift took me here. Today’s episode, brought to you by the great Lyft ride that I had like this driver. So okay, one side note I know we’re gonna be talking about like AI and like emerging technologies and how we leverage it and such. But I took this driver who’s born and raised in Cuba, his English minimal at best.

00:04:31:06 – 00:04:32:14
Lauren
He’s lived here for three years.

00:04:32:15 – 00:04:34:01
Ralph
Minimal, minimal at best.

00:04:34:02 – 00:04:59:06
Lauren
Minimal. Oh, I spent the entire time speaking to him. Only in Spanish. But I also had a friend in the car who doesn’t speak a word of Spanish, so they used each of them use the AirPods three 100%, so they used the AirPods three and were translating to each other. Sometimes I’d have to translate back into English because the AirPods three didn’t catch it.

00:04:59:08 – 00:05:25:06
Lauren
But then our Cuban driver told us he lived in Russia for five years and he’s using grok. So he’s driving a Tesla. So Elon Musk owns grok, Elon Musk and Tesla. There’s a natural integration. And he says he’s been learning and practicing English using grok in the Tesla talking to her. And it will self-correct his pronunciation. So then he was showing us he was speaking to Russian to grok.

00:05:25:08 – 00:05:27:16
Lauren
And then it was translating to us in English.

00:05:27:18 – 00:05:28:14
Ralph
That’s incredible.

00:05:28:14 – 00:05:36:03
Lauren
And I was just like the accessibility that we now have. This is a gentleman who works in Vegas. Everyone is from all over the world. Like, what do you do?

00:05:36:03 – 00:06:11:07
Ralph
It’s amazing. I mean, it’s very relevant to today’s podcast, which is all about content. I sort of big picture stuff, but that’s just one example of how widespread this is. But behind that, just think about the computing power that’s necessary in order to be able to have all of that happen simultaneously. It’s it’s almost staggering. That’s like thousands of GPUs in Nvidia GPUs being utilized in data centers throughout the, you know, the, you know, the southeast, because you’re in Vegas, probably like ten miles southwest, you’re actually located.

00:06:11:09 – 00:06:20:03
Ralph
Yeah. Just oh, yeah. Yeah, I guess that’s in southwest. Yeah. You’re in the southeast. Sorry. I got my east and west confused. It’s like my left and right. It’s very confused I yeah.

00:06:20:04 – 00:06:23:00
Lauren
We’re getting this. It’s like the point is I got a solar panel.

00:06:23:01 – 00:06:38:15
Ralph
You know, we could we could actually solve the world’s energy crisis if we just took New Mexico and West Texas and just covered them in solar panels. I read that the other day, our West Texas in New Mexico, friends that listen to this show probably are going to be very excited about that. So we have to cover over their holes.

00:06:38:17 – 00:06:40:23
Ralph
The point is, is like, this stuff.

00:06:41:00 – 00:06:41:01
Lauren
Is.

00:06:41:06 – 00:07:01:12
Ralph
Creating like such monumental change in the industry. And I, I don’t think people realize how big of a change this is. And we’re really only on the dawn of it. I saw an analysis the other day. Mirror on the internet came out. You’re probably in like junior high school. Have. Sorry. Not knock on you. Maybe I’ll entre school.

00:07:01:12 – 00:07:22:20
Ralph
But the internet bubble lasted from 1995 to about March 2000. Early 2000. So it was a five year span. So a lot of people that are thinking right now, there’s a great analysis that was done by that. So I’ll leave links in the show notes from Investor’s Business Daily where they analyze this. They said, we are not even close to a bubble now.

00:07:22:20 – 00:07:42:07
Ralph
These guys like they obviously they want to put more money into their funds and the stock market goes up. More money that goes into the market. Obviously the better. A lot of these dudes make billions, billions of dollars. The point is, is the internet bubble lasted about five, almost six years. We’re in about year three of the AI bubble.

00:07:42:07 – 00:07:48:00
Ralph
And I’m quoting that right now. Because remember when GPC came out it was 2022.

00:07:48:04 – 00:08:02:15
Lauren
But that was two years after we’ve already been using AI. So that was like the advent of the new bubble because it had further adoption. I’ve been using AI for over a year and a half, and OpenAI was one of the models on Jarvis now, Jasper, that I had been using for at least a year and a half prior.

00:08:02:19 – 00:08:33:02
Ralph
But I think the iPhone moment for AI was when ChatGPT came out. I agree, you know what I mean? It’s like it was the big moment now, the moment where, you know, it had its breakout, like its singular event, its big bang moment. Jensen Huang from Nvidia actually talks about this as back in 2012, when we were just talking about this before we hit record, when this little company called AlexNet entered a competition for three researchers that are in Toronto, Canada.

00:08:33:02 – 00:08:55:15
Ralph
But props to my boys up in Toronto. Unfortunately, they lost this week World Series. But anyway, they entered a contest where they use this AI model, this large language model, to be able to identify. I believe it was 4 million images, 40 million was in the 40 million or 4 million loss areas is three researchers. And this AlexNet, it was like it was actually at the time.

00:08:55:15 – 00:09:17:22
Ralph
I think it was like the largest mechanical Turk test usage ever in time. You remember Mechanical Turk, you pay somebody like $2 an hour to do, like all these menial tasks. Well, they labeled all these individual images, and then they threw it into this thing called AlexNet and AlexNet, then group them together like dogs, animals, vegetables, you know, office furniture, all of that.

00:09:18:01 – 00:09:22:20
Lauren
This sounds like an episode of Silicon Valley. Like what? Jimmy Owyang, that I’m Silicon Valley.

00:09:22:21 – 00:09:47:02
Ralph
Exactly. So this is 2012. And the funny thing is, is the three people that engineer that first thing called AlexNet, one of them ended up founding OpenAI, and two of the others went to two of the other large language model users, two of the largest large language model users at that point in time, and bought the technology. Guess which companies those are?

00:09:47:08 – 00:09:57:09
Ralph
Think, think algorithms. Think advertising. Think Amazon feed suggestions, focusing.

00:09:57:11 – 00:09:58:00
Lauren
Some of my.

00:09:58:00 – 00:10:00:07
Ralph
Feeds.

00:10:00:09 – 00:10:02:00
Lauren
Instagram. I know you’re.

00:10:02:00 – 00:10:33:08
Ralph
Thinking those sounds like ads through a meta. Exactly. Meta and Google were admirers of this technology, which then completely transformed the suggestion engine inside Meta and Google. And something went YouTube, which is a tremendous suggestion algorithm. Oh, you take this for granted now because like when you log in to Netflix, hopefully you get Netflix. But like they do the suggestions that like I log into my wife’s account, it’s all like, you know, English, you know, love stories and we’ll all log in.

00:10:33:08 – 00:10:36:13
Ralph
And mine is all sports and war.

00:10:36:15 – 00:10:56:05
Lauren
Oh my gosh. Sweet. Side note, Ralph, do you know the best thing that you can do to sabotage someone is you go into their Netflix and then just like Cocomelon or anime shows or just shows in the opposite direction of what they like, and you mess up their algorithm. So remember, I’m not saying I’ve ever done this to anyone page, I apologize, but that’s like my favorite way to mess up a suggestion.

00:10:56:05 – 00:11:13:10
Ralph
And it is so funny. It is so funny because so like whenever we’re watching something on a Friday night, I’m like, oh, who’s whose Netflix are we going to watch? Like, well, we have to watch mine, of course. Like, I don’t want to watch. I don’t watch it on Mondays. I don’t want like 15 Ways to Lose a guy showing up in my fee, you know what I mean?

00:11:13:10 – 00:11:38:05
Ralph
You know, I want, like, Band of Brothers in the Pacific showing up and, like, you know, Thursday Night Football. Anyway, the point is, it’s like that suggestion I run was the origination all the way back to 2012. So the reason why we have all these algorithm changes right now and this great thing that we call Meta Andromeda, the basis for that, the foundation for that was this thing called AlexNet, a great podcast series called acquired.

00:11:38:05 – 00:12:05:22
Ralph
I don’t know if you listen to other podcasts, but these guys did a whole breakdown of it and where we can go into detail, leave links in the show notes, amazing podcasts. They’re super like tech nerdy programmer guys. Totally. Like not my thing, but I love their show because they basically deconstruct different, businesses and, Nvidia, they have like a 3 or 4 part series on it, which is incredible, which as you might know, Nvidia is the GPUs that power AI.

00:12:05:22 – 00:12:33:03
Ralph
And that comes originally from the fact that they were the chips that powered all of the video games, because it is able to process all of these pixels, all of these animations, all at the same time as opposed to a CPU, which is an incredible thing, still processes everything in a linear fashion, one thing at a time. So that’s why we have these large language models today, and that’s why these Nvidia chips are just like everywhere now.

00:12:33:03 – 00:12:40:08
Ralph
And that stock is now worth like 5 trillion in market cap. Can you freaking believe that? Like Nvidia 5 trillion.

00:12:40:11 – 00:12:48:18
Lauren
I think that it’s going to be funny because like in like five years we’re going to have as we continue to colonize the moon, they’re going to be more startups where trillion becomes the new billion.

00:12:48:19 – 00:13:13:01
Ralph
It is, it is. I remember when they topped 1 trillion in market cap and then Tesla at at meta did it. And Google is right after that. So it’s like this wealth that’s being created right now from AI is insane. So if you think there’s a bubble, you can have opinion one way or the other. However, if you look at the longevity of a bubble, it’s usually longer than 3 or 4 years.

00:13:13:01 – 00:13:23:17
Ralph
Now to your point. Yeah, there was Jarvis and then it became Jasper. Jasper, because they got in trouble. Was Iron Man right. Was it Jasper first or was it Jarvis.

00:13:23:19 – 00:13:38:02
Lauren
It was Jarvis person. Disney wrote them a cease and desist letter saying you can’t use Jarvis as the name of your AI. And and they had reference how like, yeah, just like Iron Man we are your assistants or just like Jarvis is Iron Man. We are you to your marketing team.

00:13:38:04 – 00:13:59:15
Ralph
What’s a little bit of copyright infringement there? Oops. So today we’re going to get into we can certainly talk about AlexNet, the evolution of AlexNet. I’ll leave links in the show notes for this one because it’s just it’s so fascinating how it’s all sort of happens now. But this is a presentation. If you’re listening to this, we’ll go through it as much as we possibly can.

00:13:59:17 – 00:14:20:16
Ralph
I would love your take on this, because this is a presentation that I just recently did to the tier 11 internal team and the tier 11 internal team. We have a monthly call on AI innovations, specifically inside the agency space, because there’s lots of tools. There’s tons and tons of tools. Still need a human in the middle of it.

00:14:20:20 – 00:14:44:05
Lauren
Yeah, there are so many tools that it’s hard for anyone to even keep up with it. Like I told you, I got to meet with Mudders. I introduced to essentially like his role is to test and present AI tools for the thousands of product marketers, product managers and Mudders ecosystem. And like he’s full time dedicated to testing and trying to then encourage implementation across the meta entity.

00:14:44:07 – 00:14:48:03
Lauren
And he’s exhausted from his job and that’s his full time gig.

00:14:48:05 – 00:15:11:04
Ralph
Says full time gig. Yeah. So we now have like my HR guy half of his role now is AI adoption within tier 11. And we actually so one of the two things that I overindex in our company is HR, because I think people development is super important because happy people create happy customers. It’s just that’s the way that it is.

00:15:11:04 – 00:15:35:13
Ralph
It’s my management philosophy, and it’s a whole other podcast that we ever want to talk about. Secondly, AI is the tool that makes great employees extraordinary employees. If it’s deployed the right way, good employees, maybe even very good or great depending, but ones that don’t adopt it are being left behind and so I’m not saying that we have a problem with that specifically, but we want to be in the vanguard of it.

00:15:35:13 – 00:16:00:18
Ralph
We want to be the ones that are actually pushing the envelope on that and using these tools, not in a deceptive way, by not not telling clients, but using them as leveraging them to do better work. And it’s all powered by these investments in these companies now. Well, which is like in the trillions and trillions of dollars. So I think my team, maybe didn’t quite connect the dots.

00:16:00:18 – 00:16:23:08
Ralph
And I think a lot of people don’t connect the dots into how big tech is investing so heavily in this. And this is just recent last week, a lot of these big tech companies Google, Amazon, meta, you talked about, you know, before we hit record here today Tesla they’re investing trillions into data centers into yeah. You know server farms, all of this stuff.

00:16:23:08 – 00:16:44:21
Ralph
And they’re doing it like, this is smart money. This is they realize that. And Zuckerberg even said it. He’s like, we’re actually we’re lacking computing power. We need more. Right now. We’re in a dearth of compute, which is crazy to think about it, especially with the Andromeda update, which we talked about so much here, which is all powered by AI.

00:16:44:22 – 00:16:50:00
Ralph
So before I get into the presentation, thoughts, concerns, questions, confessions.

00:16:50:00 – 00:17:09:23
Lauren
One thing that links minds is this not just the private enterprises that are investing like they’re government entities, I mean, what’s coming out of the Middle East and this serious investment that many of the royal families are making into server farms and into producing the support so that they can become an AI hub, right. Like we have tech hubs.

00:17:09:23 – 00:17:32:15
Lauren
Charlotte’s emerging in the United States. San Francisco and Austin are big ones, and there are global ramifications of governments. Trump has currently been doing a big investment into the Texas area like it’s at a global scale, and I think the long and short of it is it’s not going away. It’s continuously evolving. We’re in the early stages of the bubble like period, but you have to take in consideration that this isn’t new.

00:17:32:17 – 00:17:55:14
Lauren
It’s over a decade old, is going to continue and continue to grow. And a lot of the things that we’re familiar with from a sci fi perspective are coming to the forefront. And if you’ve been afraid or, like, hesitant to adoption, I think a lot of things that you’re going to show and what we talk about beginning of this episode is like how you can leverage it for your own personal use case.

00:17:55:14 – 00:17:58:21
Lauren
As we continue to adopt the way we did to personal phones.

00:17:59:01 – 00:18:20:12
Ralph
Yeah, exactly. 2022 was the iPhone moment, but the big bang moment was back in 2012, sir, with his AlexNet. And that’s sort of the way that it’s been explained. And I can’t disagree like it was on our radar. But all of a sudden OpenAI was, what, the fastest to 100 million downloads for an app in history. Yeah, like there’s a reason why.

00:18:20:14 – 00:18:32:04
Ralph
It’s a reason why. Because it is so incredibly powerful. Now, I tend to go towards Gemini more of these days, but either way, like this stuff ain’t going anywhere. So.

00:18:32:05 – 00:18:59:04
Lauren
And you’re only thinking about the West ones, like like this one’s in France. There’s a bunch that are coming out in China all the time, like this is we’re so limited. I mean, depending on where you’re listening in from and if you’re watching on YouTube, like, let us know where you’re watching in from because you can comment. Well, it’s just the again, the, the globalization, like, we are so leveraged to only know our biased about what we can consume in the West because we don’t have that same exposure.

00:18:59:04 – 00:19:33:19
Lauren
Like, I honestly have not heard much about what is coming out of India with regards to AI, but I can tell you from the space exploration stuff because I work with clients that are in space related materials, the amount of presence that India has on the moon, Russia and China eclipses what anyone listening likely thinks, because it’s such a strong investment that I imagine that the same is being applied in AI, but where you and I both live in the United States, and what we’re exposed to is predominantly Western tools of AI.

00:19:33:21 – 00:19:52:05
Lauren
But like what China and some parts of Europe are coming out is exploding on this space. I mean, everyone talked about Neo the robot, right? That’s also an emerging technology leveraging AI. There’s so many facets of AI, but all that is like a confession is I can’t keep up with it. The person in charge at meta can’t keep up with it.

00:19:52:05 – 00:19:56:01
Lauren
No one can. We just have to adopt it and integrate it into our lives.

00:19:56:01 – 00:20:04:11
Ralph
So for the person that meta can’t keep up with it, that’s with yeah. So it’s like if he a CEO like how can we all keep up?

00:20:04:13 – 00:20:06:04
Lauren
But we don’t have to keep up with all of.

00:20:06:04 – 00:20:07:01
Ralph
It right.

00:20:07:03 – 00:20:24:09
Lauren
There. You said there’s a new tool that comes out like every other day. If not thousands of new tools every day. And a lot of them are just like interface hacking, of leveraging a tool like what Jasper did. They borrowed two other systems. They built Jasper off of open AI and several other models. And it’s just the accessibility of using AI more and more.

00:20:24:09 – 00:20:41:22
Lauren
And I know that when you talked about this, this is really cool because of how your team is adopting it. So if you’re listening to it, this of you’re currently using AI a little bit or not enough like one. It’s okay, we’re figuring this out together. And two here are some examples that Ralph and his team are actually using for watching.

00:20:42:00 – 00:21:01:13
Ralph
I think this is just really explains sort of the breadth of what’s happening. And to make people realize that what’s happening right now is just the very, very beginning. It’s really just the start. I mean, we don’t even want I don’t even want to go into like, agents and all the other sorts of things we just saw as the next evolution of it.

00:21:01:13 – 00:21:36:03
Ralph
We can talk about that in future episodes, but let’s talk about the here and now as far as I is concerned. So, if you’re watching, on YouTube of course, it’s perpetual traffic.com/youtube. If you’re listening, definitely check it out over there. So here is market values as a share of the S&P 500. Total value. So as AB5 hundred is 500 of the what Wall Street thing is the most relevant not necessarily largest but influential stocks on the market largely dominated by the tech companies which are commonly referred to as the Fangs.

00:21:36:03 – 00:21:59:03
Ralph
And this is a chart here that actually shows market values as a share. As AMP’s total value. So basically, you can see from 2015 through 2025 into 2026 Tesla, meta, Amazon, alphabet, Apple, Microsoft, Nvidia. Their value is if you aggregate all of that together, that’s about 25% of the value of the total, not some.

00:21:59:04 – 00:22:01:00
Lauren
35%.

00:22:01:02 – 00:22:03:09
Ralph
Is, but oh.

00:22:03:11 – 00:22:07:21
Lauren
I think it’s 35%, 35%.

00:22:07:23 – 00:22:30:15
Ralph
35% of the S&P total value is driven by stocks that are heavily invested and or rely upon artificial intelligence. That’s incredible. And Apple isn’t even doing a really good job of it, quite honestly. Like we all know, Siri sucks. I mean, Siri really does. Okay. But then there’s so behind everybody else. But the point is, is like they’re heavily invested into AI.

00:22:30:17 – 00:22:31:08
Ralph
So

00:22:31:08 – 00:22:41:15
Ralph
Silicon Valley’s biggest companies, these companies here are already planning on pouring $400 billion into artificial intelligence

00:22:41:15 – 00:22:44:02
Ralph
this year, 2025 with a B.

00:22:44:06 – 00:22:47:06
Lauren
We know that 65 is from Mada.

00:22:47:07 – 00:23:09:10
Ralph
81 now it’s from meta. I totally better not slide on my. It’s incredible. The next chart actually, it’s sort of blow your mind. So and they all say this just came out last week. This was this was as of this recording last week, you know, early part of October or late part of October. They all said collectively it’s nowhere near enough.

00:23:09:10 – 00:23:31:19
Ralph
So you’re spending this, but you’re like, we still have a long way to go. So if you think we’re in an AI bubble right now, yeah, it’s hard to believe that that’s the case now. The internet was overbuilt in the 2009 and 2000, but like I don’t think we’re anywhere close here. Like the question is, is how we’re actually power it and where the water is going to come from.

00:23:31:19 – 00:23:56:15
Ralph
That’s it. My wife always says, well, you know, they suck up so much electricity and so much water. I’m like, yes, they recycle a lot of the water, but the electricity, yes, that’s a problem. So the point is I’m not exactly sure where all that’s going to come from, but let’s set that aside. So here’s another graph. So this is investment capital expenditures quarterly for the big four meta alphabet which is Google Amazon Microsoft.

00:23:56:15 – 00:24:10:19
Ralph
Obviously these guys are heavily invested into AI capital expenditures into AI meta and 2025. We’ve been saying 61 billion that they are investing in 2025. Well it was actually 71 billion.

00:24:10:19 – 00:24:22:06
Ralph
They up to that another 10 billion this year just for the final quarter. So they went from 61 billion to 71 billion investing in all of this stuff, which is data centers.

00:24:22:06 – 00:24:32:11
Ralph
All the things that we’re gonna talk about here in just a second. But they are projecting in 2027, $115 billion in investment.

00:24:32:15 – 00:24:36:15
Lauren
And this thing I want to throw out here at all about, oh.

00:24:36:17 – 00:24:38:20
Ralph
I mean, can you believe that?

00:24:38:20 – 00:24:47:20
Lauren
Why do my ads cost as much as they do right now? What the heck? Because they’re getting ready to raise the money to fund this.

00:24:47:22 – 00:25:06:20
Ralph
Well, hopefully that investment will make your ads more efficient because of the Andromeda update, but they’ve really like we’ve been talking about the Andromeda update here. We will leave links in the show notes to all the shows that we’ve done on it. You know, its content diversification, all the other sorts of things that are so important. But the point is, is like they love Zuckerberg.

00:25:06:21 – 00:25:39:17
Ralph
Direct quote from he says, we are running in a compute starved state, a compute starved state. Even with a $71 billion investment in 2025, there’s such an appetite for more compute, which is basically more servers, more, data centers, more GPU chips to power all this stuff. So, Microsoft will double their data center output over the next two years, double their data center output, like if you’re living in these neighborhoods.

00:25:39:17 – 00:26:02:04
Ralph
And I’ll show you one of them, or it’s middle of nowhere. Just a second here as well. Google, Amazon and even Apple. Lo and behold, who is being kind of left behind with all this. But still, they’re not even on this chart. These companies thought that they were catching up, but recently all reported all of them together. They’re actually short on capacity, even with this type of investment.

00:26:02:04 – 00:26:03:15
Ralph
King freaking believe that.

00:26:03:17 – 00:26:21:02
Lauren
Know I’m at a loss for words. I’m like, are you the best? Is it staggering? Like, this is unreal. Like, all I keep thinking was like, okay, well, I need to go buy acreage of land in West Texas and sit on it until they eventually convert that into data center. And like, it’s just power is a new level of gold.

00:26:21:04 – 00:26:30:03
Lauren
Yeah. Unless it gets like eminent domain saying we surrender this land and is now ours says the government of like, oh shit. But, okay, so for those that are.

00:26:30:03 – 00:26:41:08
Ralph
Not all those ranchers that are just like, you know, just like rubbing their hands together like, oh, my 400 acre farm, I can sell it to Microsoft. Of course they sell.

00:26:41:08 – 00:26:44:14
Lauren
The solar access is the new petroleum. Yeah.

00:26:44:14 – 00:26:49:05
Ralph
Fair. Yeah, exactly. So crazy stuff.

00:26:49:15 – 00:27:09:00
Ralph
All right. So I hope you enjoyed today’s show. That is part one of a two part series here. Like I said, if you are not watching along, you maybe you were listening along and check us out over our YouTube channel at Perpetual traffic.com/youtube. You can follow along to the presentation there. See the graphics? Some of this stuff is absolutely mind blowing.

00:27:09:02 – 00:27:27:00
Ralph
How much is now being spent, and the reason why they’re spending all of this is because they realize all these tech platforms. They realize that this is the future. And specifically for meta and for Google and the advertising side, Amazon as well as Apple, as well as a lot of other tech companies we really didn’t even talk about here today.

00:27:27:06 – 00:27:48:13
Ralph
One of the keys to all of this is being able to have creative that is diversified. And yes, once again, you can get the creative diversification package if you qualify. Once again, you buy the creative diversification package, which is the only way to leverage Meta Andromeda right now. We’ve talked about it many times here on the show. You get the ten creative types.

00:27:48:13 – 00:28:10:04
Ralph
You get fresh creative every single week five, six, seven creatives, every single week a minimum of 30 plus per month, which is what feeds the algorithm. And you buy that package, you get the media buying and the tier 11 data suite for free. We have never done this before. This is an insanely great deal to set you up for success.

00:28:10:04 – 00:28:12:02
Ralph
However, you have to qualify.

00:28:12:02 – 00:28:33:03
Ralph
You have to be comfortable with at least spending $10,000 a month on agency services, and that does not include ad spend. So check it out over at tier 11.com/cd. That’s tier 11.com/cd. And of course wherever you listen to podcasts leave us a rating and review.

00:28:33:03 – 00:28:53:18
Ralph
We’d love to hear from you about this episode and any other episodes. And all the show notes are, of course, over our perpetual traffic.com. For part one of this two part series on how AI is revolutionizing the industry that we all operate in here today. So on behalf of my amazing co-host, Lauren E Petrillo.

00:28:53:18 – 00:28:54:13
Ralph
Until next show,

00:28:54:13 – 00:28:55:05
Lauren
Down.

00:28:55:10 – 00:28:55:23
Ralph
see you.

Episode 748: The Invisible AI Underbelly That No Marketer Knows About…Until Now (PART 1)

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The Invisible AI Underbelly That No Marketer Knows About…Until Now (PART 1)

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