5,000+ Tech Workers Laid Off This Week. It's Just The Beginning. | E2286

May 8, 2026

AI Summary

5 min read

David Moscatelli, founder of Go Abacus, explains his company's on-premises AI infrastructure tailored for regulated sectors like banking and healthcare, where data cannot leave local networks. The episode also touches on Yaniz's biometric proof-of-human system and analyzes recent tech layoffs as companies restructure for AI efficiency.

On-Premises AI Infrastructure

Regulated industries need AI but reject public cloud providers due to data privacy risks and variable usage costs. Go Abacus addresses this with hardware and software that keep data on-site, offering fixed pricing. Customers include banks, credit unions, hospitals, insurance firms, and unexpectedly, celebrity home automation setups wary of cloud data sharing. The core product, Go One, launched 25-30 days prior to the episode, already has over 1,600 orders. Moscatelli emphasizes that not sharing data is the only sure privacy guarantee, citing executive track records at cloud firms and historical internet privacy issues.

Go One Device Design and Deployment

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What you'll learn

1 (00:01) **Regulated Industries' AI Dilemma** - Banks, hospitals seek local AI without sending data to public clouds
2 (02:40) **Go Abacus Intro and Mission** - David Moscatelli pitches on-prem AI hardware/software for enterprises
3 (07:07) **Go One Hardware Specs** - Redundant GPUs/CPUs/power, yearly refresh, chainable for scale
4 (09:34) **Pricing and Service Model** - $250K capex for Go One (up to $350K for max), monthly fees include refreshes/replacements
5 (12:42) **Proprietary SLMs and Training** - 3-7B param specialized models, orchestrated for banking tasks; core updates every 6 months
6 (16:40) **Scaling 1,600+ Orders** - Enterprise sales cycles provide lead time for supply chain/build
7 (21:41) **Chicago Startup Scene and Culture** - In-office at Merchandise Mart/Fulton Market; taps affordable, loyal talent

+ Full timestamped outline available in the app

Show Notes

This Week In Startups is made possible by:

IM8 Health - https://IM8health.com/TWIST

Every - Every.io

Sentry - https://Sentry.io/TWIST

Banks don’t want to hand over their data to AI labs. So David Moscatelli built a $250,000 box that runs AI on-prem. He already has 1,600 pre-orders. On today’s episode of TWiST, Jason and Alex sit down with the Go Abacus founder and Yanez's Jose Caldera to unpack how regulated industries are getting AI without the cloud, why Bittensor subnet 54 is incentivizing miners to attack identity systems, and why Cloudflare just laid off 20% of its workforce in the same week it raised guidance. The show closes with Jason explaining what it means to build an AI-first startup, and how workers can derisk their future employment!

Guest Links:

Go Abacus

Go1 direct link

David Moscatelli on LinkedIn

Yanez

Bittensor Subnet 54 on TAOstats

Jose Caldera on LinkedIn

LAUNCH Links:

Founder University

Founder University Japan application portal

News Links:

Cloudflare lays off 20% of its staff