Today’s guests are Barun Kar, CEO, and @rkhemani, Executive Chairman at @upscale_ai_inc. Barun and Rajiv’s bet is that the AI era needs its own network: open, standards-based and built to connect AI chips to each other. From switch silicon to supply chains, we discuss: - How scale-up and scale-out networks work - Where copper, optics and optical switches fit - Why open standards matter for AI chips - What a network operating system does - How Upscale secures its supply chain - Building culture while scaling to 300 people Timestamps: 0:00 Introduction 1:05 Why AI needs a new network 5:21 Why cloud-era chips fall short for AI 9:05 Scale-up and scale-out inside an AI rack 16:09 The Auradine spin-out and Upscale’s founding story 20:52 Memory semantics versus packet switching 27:23 From Cavium and Palo Alto Networks to Upscale 32:23 Competition and the system-level advantage 35:55 What a network operating system does 37:01 Optics and optical switching 41:45 Selling to hyperscalers, new clouds and enterprises 47:40 How big AI networking could get 50:43 Securing supply across the chain 54:29 Building at the forefront of AI 57:40 Beyond networking: what comes next 1:03:38 Building culture in a fast-growing company Listen to the show, and follow along for new episodes every Tuesday.

We are terminating Chris Degnan for unethical conduct involving Cognition. The last few months have seen incredible progress in AI capabilities. San Francisco has flourished as new companies that solve new, more ambitious problems are finding great success. Generally, it is a wonderful time to be building. We at @FactoryAI have seen overwhelming interest in our model-agnostic coding agents and our software factory product. Our team has 10x’d in size, while our revenue has 100x’d year over year. This momentum has been unprecedented. A much larger competitor, Cognition (makers of Devin) has fallen behind us on the capabilities that matter most to customers: cost, quality, and security. Instead of competing in the market, Cognition engineers feigned interviews with us to pry information about our product. Not finding what they were looking for, Cognition has decided to throw their weight and money at people with direct knowledge of our most confidential plans. It feels as though ethics is being thrown out of the window in the AI era. People are willing to do anything, including exploiting privileged information and violating ethical boundaries. I think this is unique to our time, and I don’t think it’s right. Integrity still matters. Yesterday, I made the decision to immediately terminate Christopher Degnan’s roles as a Board Observer and Advisor to Factory, after over a year of service. Prior to this decision, Chris told me he had a casual conversation with an executive at Cognition AI. When I questioned his intentions, he reassured me that ethics aside, he had “made too much money” and was “too lazy to go work for Cognition,” which I trusted and believed. On Monday, Chris spent time advising the Factory team on a handful of confidential board-level matters. That evening, he called me to say that the conversation that was initially described as casual and one-off was actually formal and recurring. For weeks, while he sat in our board meetings and advised our leadership team, he was also confiding with executives of our largest competitor. Chris was subject to confidentiality obligations in connection with his work with Factory. We do not know the extent of the information he shared, but it puts his timely questions about our product roadmap and what the parity gap involves into a new light. It is sad to sever a relationship with someone who has been a trusted advisor - and even a close friend - for over a year. But Chris’s conduct is unacceptable to me. Trust in Board Membership is one of the sacred bonds in the Silicon Valley, one that helps the startup ecosystem thrive. With it comes an enormous responsibility. That trust was violated. Competition is good. I respect and in many cases admire our competitors. San Francisco is a beautiful, singular place where the bold and ambitious go to defy the norms and precedents of the past. But certain principles that must remain. Violating ethics to seek advantage turns what should be positive-sum into zero-sum. We all love technology. And we all love to compete. But we must hold ourselves to a higher standard. The future of software engineering comes with abundance that will impact every person on Earth. Building that future comes with immense responsibility. We must build and compete with integrity.