WEBVTT

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- AI's impact on the
global economy is just

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starting to be felt.

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What's your prediction
for the future of ai?

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- The street or Wall Street
is still in the skepticism

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phase, and so we are suggesting

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that investors still, it's early.

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And to embrace these companies

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and to recognize the fact
that we've got a long, long,

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long way to go, well,
what it's going to do,

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it's gonna really unleash the
power of the computer and,

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and, and, and,

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and thought, you know, it's
going to digitize, it's going

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to commoditize

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and it's gonna put a dollar
value on intelligence.

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Really, when you think about where we are,

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we're actually in 19 84, 85,

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when Nvidia was the intel,
you know where it was,

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Microsoft was just starting out, right?

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That's where we are in this genesis

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of this evolutionary process.

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But what's different is the
rate of change is exponential,

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so it's going to hit us faster.

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So Apple's going to have
an upgrade cycle, right?

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Dell computers is gonna,
basically we're have

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to rip out all the server
farms and rewire them.

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We have to go from a CPU centric world.

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That architecture that
was developed in 1947 has

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to be re ripped out

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and we have to put in a GPU
centric platform and the,

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and the GPU is Nvidia,

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and then that all filters through.

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And now think about all
the data that we have,

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whether it's Tesla, whether
it's Dell, that data

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is going to be used to make
decisions and to create value.

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- What is A GPU and what
is A CPU? Just to clarify.

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- A CPU is a, a, a very

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powerful processor

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that can ha has a limited
amount of capacity in dealing

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with data processing.

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A GPU is a chip where you can do a ton

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of parallel processing at the same time.

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So if you need a chip to
basically process a ton of data,

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it's a GPU, not a CPU.

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There is our phases in our market

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where we do not know the size

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of the total addressable market.

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Think about we have a
company, a biotech company

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that develops a drug.

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It solves, it makes us thinner.

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And there's that period
of time where we're trying

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to guesstimate the total
addressable market in that period

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of time when we're basically

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figuring out what that market is.

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Valuation doesn't matter.

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Fundamentals don't matter

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because we're trying to figure it out.

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Janet Yellen's husband, who
is a Secretary of Treasury,

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is a guy named George Olof
who won the Nobel Prize,

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and he questioned the
efficient market hypothesis

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that we use in the market.

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And he says, when you
go through these phases,

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you're actually blind betting, right?

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You don't know what the
value of that used car is.

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I don't know what that
value of the used car is,

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but it's the guy that's got
the best story wins. Okay.

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- That seems like what we're
doing with AI right now.

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We're boom, we're blind
betting, we're blind

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- Betting.

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- It's infinity money, infinity usage.

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- It will become a bubble.

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And that's okay

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because with innovation, it,

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it's a normal course of business.

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We aren't at the point
where you're starting

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to see the street expectations.

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So for example, when you
look at Nvidia, the PEG ratio

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of Nvidia is less than one.

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So in other words, it might
be expensive, but you're, but,

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but it's growing faster than
what you're paying for, right?

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The street hasn't gotten
ahead of itself in terms

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of earning expectations in 26, 27, 28.

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Same thing with Dell, same
thing with Apple, right?

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There's, there's people
that are questioning whether

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or not there's going
to be an upgrade cycle.

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Andy, in the nineties when,
when Microsoft came out

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with a new Windows version, right?

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That was based on Intel's
new chip, you and I had to go

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and buy a new pc.

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It's a massive upgrade cycle.
So none of this is profound.

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We've seen this before.
We are blind betting.

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Yes, that's normal. It's
going to be a bubble.

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Everybody's freaking out

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because the narrow of the breadth

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of the market is really narrow.

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Well look at going back
to 1990 3% of the stocks

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generated all of the wealth.

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So that's from the s

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and p 500, that's 15 stocks.

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The United States is the leader.

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So the United States is the
place to invest the rest

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of the world, not so much.

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Okay? And let's not
make this too difficult

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and let's realize the fact

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that this time it's not different.

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- Well, thanks a lot Jim.
- Thanks for having me.

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- Thanks for watching.
Check out more@qz.com.