Why Cloudflare Stock Jumped 20% Because of AI Security

Full Video Transcript

Once you have a super agent and if you have not well thought thought out, it can do some weird stuff too. People got in trouble. Their computers are just going autonomously and doing things which could put them at risk, right? There are things which can can go wrong and they did go wrong. Once they went wrong,

CloudFare came out immediately and said, “Hey, by the way, you can run all this. Don’t run it on a local machine.”

So yesterday we were talking about CloudFare, right? and how CloudFare like their stock went up 20% in the past two days. So let’s just talk about why that happened and what has AI got to do with it.

Okay, so um Cloudfare as a company is the firewall of internet. Some ways I think of it as it’s the true firewall of internet.

lot of traffic I don’t know the percentage uh somebody could google this or find out a lot of traffic for a lot of websites goes through cloudfare it very large amount right in fact our own um all apps and websites and everything we put the DNS on cloudfare for that reason.

and what cloudfare’s business model has been traditionally and they give out free DNS hosting and it’s a pretty good DNS hosting. And for everybody base level and what they do there is that your basically your website’s traffic goes through them and they can detect malicious traffic and stop that malicious traffic for you.

Right. And base level they to the site it asks you like checking your human cloud fair. Yeah, that yeah if you you try to log into a lot of places you see this right are you human that comes from cloudfare even though you’re logging to some other site but cloudfare comes in between.

so that’s that’s cloudfare now what cloudfare by doing that what they did was by giving it away free free that level of service is brilliant because if somebody wants to detect bad traffic it needs as many sites as possible right because sites which are trying to go and do bad. It’s a usually the same IP trying to do it for many sites.

So they can detect patterns, right? And I’m oversimplifying. There’s a lot more goes behind it, but simplest way is that if somebody a malicious agent starting from an IP and going trying to hit every site, if they have many of those sites going through them, they can detect that pattern and then they can block it and after that they can block that IP for everybody.

They protect everybody, right? that any traffic coming from that completely blacked out cannot come to their any sites which is which is uh uh with their DNS they have.

now for the companies who are really looking for next level security they offer many more services but the base level they can offer for free because they’re leveraging from your data basically right of saying that how that traffic pattern is.

so if cloudfare goes down I mean a lot of sites will go down in many ways right because lot of traffic goes through them so that’s the cloudfare has been doing traditionally.

Then they added the next level service they added and we we’ve been I’ve been fan of cloudfare for years now and we’ve been using it. Then they when and to me I was very excited when they actually added uh domain registration and they do domain registration at cost.

which means whatever the I can service which is responsible for doing the domains registration the government requirements and all whatever is the charge they don’t charge anything over there.

because if you go through goaddy or any others they charge whatever charge they want anybody can charge any charge they want for registering domain but underneath they’re using the registry service which the government’s control right I and is the body actually it’s a nonprofit body I believe uh so they control it.

so they they do it pass through no charge additional charge so it’s the best possible deal and you get the DNS automatically if you’re registering through them DNS automatically comes through.

so they started doing that then they started saying oh you want serverless solution you want codeless execution on their servers they started offering that very recently for AI.

you in some ways what Replet was trying to is doing and others are doing. So they started offering bunch of stuff and it is this is cloudfare much more trusted and secure right for everything.

and that’s what uh they had already started doing and they do it through containers you can execute any code which is dockers which is actually other thing I absolutely love uh we want to we implement as much as possible through docker containers.

because docker containers basically allow you to do the development locally on your machine and that same container can run on server. So when you’re testing as a developer, the reason it is like you never have to worry about you’re controlling every variable.

So if it works here, it’ll work on the server too. So you never have to worry. I mean like taking it from one to the server is like really easy. So they do it through dockers.

So all this they were already doing and doing amazing job. It’s a you know it’s a technology company really deep into technology right used by people who understand technology and work with technology.

it’s not kind of a it’s consumerf facing company anybody can use it for registering domain but usually used by developers and others who know more about that right.

what they did was basically they kind of built this open source for everybody and we’ll talk about that in a minute um and gave it out free and named it cloudbot.

They started development on it on 2025 kind of a thing just launched it they’ve been working on it and they just this is a agentic uh platform which is available with the code you run your with your LLM and do a lot of agentic work with it.

and they made it compatible with lot of lot of things basically the magic is their magic is you’re running LLM somewhere on a machine which you can choose.

But you can talk to your LLM through signal, WhatsApp or through messaging. So instead of and so you are talking to your LLM remotely and ask it to do something on your behalf.

That’s you know it just that’s in in a simple words if you want to understand that’s what that does and they named it cloudbot because kind of they were using claude actually is a great one for agentic work.

and then they claude cla and of course they got seized desist I mean they claim a friendly notice actually it was a friendly notice from claude that hey you can that’s infringement you cannot call it cloudbot even though it’s spelled claude.

so they panicked and went on their uh uh discussion channels and discussed with everybody and said this is like morting so we are moving and uh and they named it Moltbot very quickly.

this was like a very quickly within 24 hours discussing with their own community on discord they came up with the name Mortbot then they realized that’s probably not the best name.

so then they finally got the dom they went and quickly acquired the domain and everything for and they named it openclaw.ai AI that is the better name that’s the official name.

but they went viral so quickly that even now if you search everybody search for cloudbot you know so open claw is the current current uh official name.

I I think it’s a cool name right and because it’s it’s open open uh open source it’s available the code is available from GitHub you can download it and install it right.

so what has this got to do with cloudfare now so what this got to do with cloudfare is when cloudbot was launched, people started running it on their machines.

It’s a super agent which does lot of stuff. So once you have a super agent and if you have not well thought thought out, it can do some weird stuff too.

People got in trouble. Their computers are just going autonomously and doing things which could be could them put them at risk, right? And and and u people did get into trouble.

enough people got into that kind of issue and and people were like, “Oh, you cannot you just it everybody started buying a Mac Mini and their sales went up.

Buy a Mac Mini, install this and put it on the side. It’s a cheap way to run it independently and that program is running continuously and can do all the work for you. You can remotely reach out.”

In fact, we were at that event and I was saying is we met some people there and we could have if I had the agent running with cloudbot, I could just get their name and tell the agent just send a message to um you know openclaw and say hey find out everything you can about this person and give me a summary while you’re meeting.

and in in fact if you were using any kind of u AI glasses or something it could probably show you the data about them right so there are so many things you could do right.

while talking you could find out about the person and if you’re intelligent about them, right? So things you could do like that, right? That’s a simple application kind of a thing.

But there are things which can can go wrong and they did go wrong. Once they went wrong, Cloudfare came out immediately and said, “Hey, by the way, you can run all this. Don’t run it on a local machine. You can run it in a container on on uh Cloudfare,

which when you run it in a container, it is secure. It can do only so many things because it has access to just that container.

Now, of course, they didn’t talk about that it cannot work with your file system and things like that. There are limitations now. It’s working in a closed environment, but safety wise, it’s great.

It will only get access to what you gave. It’s not going crazy through your computer and going to your home network and doing everything bad for you, right?

And that that got people excited that, hey, Cloudfare has this solution and this is great and they’re already offering this. So this stock jumped up.

The reason now I mean in some ways great this was a foresight from kind of a cloudfare to have all this but reality is you cloudfare is not the only place only player.

you can run it on any server basically right it’s open source code you can run it anywhere right and and replet has it now replet is in the game.

and they’re saying here it is all basically what they have done is the ones who were already offering these services now they have oneclick installs click and the whole GitHub repository comes in and everything is installed for you.

and they’ve started doing that to make it easy right but the cloudfare has this additional advantage of they are known for the security.

they are as I said firewall of the internet that’s what I call it at least so they have they are known for security and they know uh they basically work on the edge.

if there is a problem anything coming in so they they will know more than the others right that’s assumption basically.

so that’s that’s where they’re that’s the reason so that’s the story behind uh the thing going up.

So it’s a security basically you know you have such a capable thing but how do you make it secure and there Cloudfare comes in and and makes it secure.