Hey there! Live from the Loft 100 studios in sunny San Diego, California. Big fish shows on the air. Great to have you on. Not so sunny today, Mike Costa. No, a little bit of a what do they call it, the El Nino River. Yeah, why don’t they call it El Nino anymore? Because sandalances. Do you remember El Nino? Yeah, oh yeah. Because how come we’re not hearing the word El Nino this year or La Nina? I’m sure somebody named Nino or Nina got offended. Not sad anymore. Good to see you guys today in studio. One of our favorite guests, in fact, we had such a great conversation last time. I got you know if I get Troy Hazard on the line or Steve Forbes or you name one, we get what, six, seven emails. I got some like 30 emails on our next guest. His name is Leo Tall. He is the CEO of a company called Sinjin, like engine, right? Sinjin. Their stock symbol is C-YN, and they are in the business of this little thing called chatGPT and AI. Can you explain for the world what the heck that is? Because I sort of feel like chatGPT and AI were like when we first got email. Remember? So you’re saying I could type something over the interweb? Wow, right? Are we is it that significant in your mind? I think it’s huge. But first, we are in self-driving for industrial applications, right? And we’re definitely in AI. And you know chatGPT and I’ll talk a little bit about it. But you know, you need to understand what it is when it’s on The Simpsons or yeah. Um, because, um, you know, you guys developing autonomous forklifts and autonomous mining trucks and such is one thing. But the fact of the matter is AI is this thread that’s running through everything. And every time you say AI now, you got to hear chatGPT. And you brought it up last time, and it caused a big fervor in the audience. So I say, okay, have this guy explained what it is and how it applies to a company like your Industrial company? So maybe let’s start with what chatGPT is and then explain from there. ChatGPT is an algorithm, it’s a software that was developed by a company called OpenAI, one of Elon Musk’s companies. It’s what’s called a large language model neural network, and the specific one is generative pre-trained Transformer. Now forget everything I said. It’s a system that can interact with using natural language. You can ask a question, you can ask it to summarize something. You know, my son is preparing for Bar Mitzvah. I asked GPT to write me a 500-word welcome speech for Bar Mitzvah. Work done. And basically, it’s gleaning information all over the internet, all over the universe, and creating something almost immediately that’s relevant. So that’s the great difference about this. There are two things that make GPT and this generation of AI very unique. One is the huge amounts of data that are used to develop it. The model is developed like our brain does. It creates connections between things and it identifies patterns. And the whole purpose of that model is to determine what the next word in the sentence will be. What’s crazy about this, have you ever read GPT text? It’s the ability for them to create analogies in the middle of a sentence that is basically generated by zeros and ones. It’s getting close to the point where you will not be able to understand you’re talking to a machine and not to a person. Yeah, that’s very close now. The real importance in this situation is it’s a huge model based on a lot of data. Think about the entire body of literature and Wikipedia fed into the development. Sure, and it holds context, so you can ask a question, then have a follow-on question. You can really talk to it now. This is the first time AI has been in development. Sure, 50s, but this is the first time where it’s made available to the public in such a mature state where it’s actually usable. You know, I have people from the finance team, the marketing team, the business team. Everyone interacts with it and can ask questions and have it support them. Think about the general population, healthcare, finance, everything. Well, the concern is, when it comes to your company, by the way, Leo Tall is our guest. He’s the CEO of Sinjin. Their stock symbol is CYN. For me, garbage in, garbage out. Which you’ve seen happen a couple of times in the news where someone tried to use GPT for a speech or a television script. For you as an industrial company, what happens if AI and GPT get it wrong in the applications? If you guys are specializing in Terminator 7 Skynet. I think we brought it up last time, really. So the way it’s handled today is the model is developed initially like a baby, and then there is a group of moderators, people that sit and crop the edges. This is why it’s not exposed to the open internet, but to a much more curated set of books and text. Then the model learns what’s good, what’s bad, and becomes confined. Now, people know how to hack it, people are playing with it, and GPT is not the only one. There is a Google one called Bard, and Meta has Llama. You see more of them coming out. The first stage is a lot of people involvement. There’s an army of people supporting OpenAI and Facebook to curate those. Over time, they become better and better, and you don’t need the people. It’s almost like miners on cryptocurrency or you have people verifying versus just throwing information out there. Talk about Sinjin. This is pretty interesting stuff we’re talking about automated industrial vehicles and such, and that’s really what we talked about last time when you were here. But I think one of the issues is that when companies are depending on AI and GPT, it’s a dangerous place to be if they get it wrong in the applications. If you guys are specializing in Terminator 7 Skynet. I cannot confirm nor deny that we’re looking at everything you’re doing. I saw your ring your bell at NASDAQ. I know where you were. You know, we ended 2021 with the plan to take two years, build the team, do a pilot here, pilot that, create some partnerships, and then really start making money in 2024. This is sort of what we took on the roadshow. Two months later, the world changed. We came to January. All of that was not valid anymore. It was all just show me the money, right? Um, we had multiple deployments with customers for pilots. We grew the team from about 40 people at the end of 2021 to almost 100 people now. Um, our main focus initially was warehouses, material handling vehicles like the stock chaser you see on the website. We decided to pull two other applications into this. The first one was in heavy industry, a very large forklift. The second one is expanding into mining. Mining by itself is a huge addressable market. Automation goes a long way there for safety, for augmenting workforce. There’s a very big labor shortage. You know, the ability to do all these three things together is because we could increase the size of the team and really dial up the execution engine. And really, you know, the way we think about this is in times of crisis, some companies don’t make it, but because they do make it, they are stronger. That’s true. And I’ve got to ask about that because look, at the end of the day, Silicon Valley Bank failed because there’s an inverse relation between bonds and interest rates. Interest rates went up, bonds went down. The reserves at Silicon Valley Bank were largely backed by bonds, meaning that the bank’s going to fail. Look, does that smell like the 2008 banking crisis with the mortgage-backed security? Yeah, it’s exactly what happened. And it was a good old-fashioned bank run. Most depositors are not going to suffer from that type of action because most people don’t have $250,000 sitting in the bank. If they got that much money, they’re usually investing it. But for you as a business, okay, it affects small businesses. Are you concerned about the banking industry as a public trading company? You know, six months ago, if you’d ask me what I’m thankful for, banking with BoA was not one of the things. But really, when I think about Silicon Valley Bank and everything that’s happening there, I think about the concept of disruption. They failed because of their strong long-term bond position. Sir, but what caused that was they expected the world to remain at low interest. Well, sure, okay, expected to continue dominating the mobile. Exactly right, with the highest inflation in 40 years, what do you expect to happen? Interest rates, right? Will you come back and see us at some point? Of course. Leo Tall, CEO of Sinjin.
