There are still a LOT OF QUESTIONS here, Spear Advisors founder

[LAUGHTER] >> THAT'S WHAT I WANT TO TALK TO YOU ABOUT. >> K3. INVESTORS ARE MISSING THE MAIN THING MISINTERPRETING SEVERAL MESSAGES SO SPIRIT ADVISOR, HERE IS THE THING THAT STOOD OUT FRIDAY, I NEVER HEARD OF THIS, BUT WAS 18? THEY LEAVE FROM 18 TO NUMBER ONE IN THIS ARENA, THIS IS -- NO MATTER WHAT YOU THINK ABOUT THIS, TO THINK A CHINESE COMPANY CAN COME THAT FAR AND FAST IS UNNERVING. >> THAT'S RIGHT, THIS IS AN IMPRESSIVE PERFORMANCE, HOWEVER, SOME SKEPTICISM AROUND THIS BECAUSE NOT ALL APPLICATIONS ARE CREATED EQUAL SO DEPENDING ON THIS MODEL, YOU GET DIFFERENT OUTCOMES SO FOR EXAMPLE, RIGHT NOW QUAD FABLE IS IN THE LEAD FOR MOST APPLICATIONS BUT SOME LIKE CODING, WHICH IS A BIG ONE IS SUPPOSEDLY. >> A LITTLE BIT BEHIND, YOU HAVE TO BE IMPRESSED WITH THE IMPROVEMENT AND THE PACE AND THE KIND OF THREAT DOES THIS MEAN IN RESPECT TO ALL OF THE FRONTIER MODELS IN GENERAL? >> A THREAT TO THE FRONTIER MODELS AND THE QUESTION IS GOING TO BE WHETHER KIMI CAN CAPTURE THE ENTERPRISE MARKET, THUS THE BREAD-AND-BUTTER FOR ANTHROPIC, THAT'S THE BIG QUESTION FOR THE U.S. WILL ALLOW ENTERPRISES TO USE IT EVEN THOUGH IT OPEN MODEL, WE DON'T QUITE KNOW WHAT'S BEHIND IT YET, THEY ARE SUPPOSED TO RELEASE IT AT THE END OF THE MONTH SO THERE'S STILL A LOT OF QUESTIONS HERE IN TERMS OF THE MODEL FUNCTIONING AND SOME TASKS IF YOU HAVE TO RUN IT MULTIPLE TIMES, YOU HAVE SIMILAR THINGS. >> I'VE BEEN CRASHING ON THIS FRIDAY, AND FRIDAY MORNING, LEARNING ABOUT THIS ALL OVER THE WEEKEND AND ONE THING WE SEE, THIS IS A A INTELLIGENCE SO LITTLE DIFFERENT THAN WHAT WE SAW, STILL IMPRESSIVE BUT IT TAKES A LOT TO RUN THIS, IT'S NOT CHEAP. THE INITIAL THING WE HEAR CHINA, THEY WILL TAKE ALL MARKET SHARE. >> ABSOLUTELY, THEY ARE OPEN MODELS IN THE U.S., THAT ARE CHEAPER THAN THIS SO NOT NECESSARILY SIGNIFICANTLY CHEAPER THAN ANY MODEL OTHER, IT'S MORE EXPENSIVE THAN LOCAL MODELS, BUT CHEAPER THAN THE HIGH AND FRONTIER SO THAT'S HOW YOU COMPARE ON THE PRICING. >> YOU ALLUDED TO THE ADMINISTRATION, WHAT DO YOU THINK? A LOT OF PEOPLE SAY CAPITALISM, LET'S HAVE A OPEN SOURCE AND SHOULD BE NOTHING AROUND IT, THE ADMINISTRATION HEARING THIS IS ONE THING TO BUILD THIS UP, I GUESS THE KEYWORD IS DISTILLATION, FANCY WORD FOR THEFT SAYING THE CHINESE STOLE EVERYTHING FROM ANTHROPIC AND PUT A LAYER ON, SHOULD WE ALLOW THAT TO HAPPEN? >> IT IS A FREE MARKET SO LOW REGULATION WILL ENCOURAGE MORE COMPETITION AND THAT IS ULTIMATELY GOOD FOR CONSUMERS AND I THINK THE REAL QUESTION IS, WHERE IS THE DATA GOING? HOW SECURE IT ACTUALLY IS SO I THINK THEY SHOULD BE A LOT MORE EDUCATION ON THE SECURITY OF THESE MODELS, EVEN THE U.S. LIKE WHEN YOU BEAT INFORMATION THROUGH THE MODEL, IS A TRAINING THE MODEL, OR PROPRIETARY? >> IS A TOO EARLY TO SAY OPEN AI AND ANTHROPIC IN TERMS OF TRILLION DOLLAR COMPANIES, HE MAY STILL HAVE THAT MARKET CAP? >> I THINK THEY CAN BECAUSE IT'S NO LONGER ABOUT ABLE, IT'S ABOUT THE NEXT MODEL SO THE COMPANIES, ANTHROPIC AND OPEN AI ARE AT THE FOREFRONT OF INNOVATION, IF THEY STOP, TO MAKE WILL STOP INNOVATING. >> WE SHOULD BE BRACING FOR THAT. WITH GEMINI THEY COULDN'T KEEP UP AND TESTING NOW AND THAT'S ONE REASON GOOGLE WAS HIT AND THIS WAS INTERESTING SO WE RECEIVED FAR MORE THAN EXPECTED AND GPU IS FEELING IT THEY PUSH CLOSER TO LIMITS AND CAPACITY AND THIS TAKES US TO THE WINNERS, EVEN AMERICA, COMPUTE HAS TO BE A BIG WINNER. >> THE TAKE AWAY FROM ALL OF THESE MODEL DISCUSSIONS, THE COMPUTE LAYER IS STILL VERY CONSTRAINED AND STILL THE BEST PLACE TO GET RISK REWARD, ESPECIALLY WITH THIS PULLBACK. >> OPPOSED TO PUT OUT, I LOVE WHEN YOU PUT THESE CHARTS OUT, THE WORST IN 27 YEARS, WHAT ARE WEAKENING WRONG ABOUT THIS PULLBACK? >> WHAT'S HAPPENING IS THEY BEEN TAKING A BIG SHARE OF THE BY HERE AND MOMENTUM IS ONE OF THE MOST SUCCESSFUL STRATEGIES SO THEY HAVE BEEN ON THIS SUCCESS OF THE SEMICONDUCTOR TRADE BENEFITING DELIVERANCE OF THIS YEAR END THE TRADE IS NOW ON ROUNDS SO EVERYBODY CHASING IT HAD TO AND THIS WAS A GOOD ENTRY TO GO THROUGH THE LAY OF THE LAND. >> THE PENDULUM SWUNG TOO FAR BECAUSE OF WHAT HAPPENED WITH THESE FUNDS, THE OVERCOMMITTED AND GOT HAMMERED AND FOUND CREATING OPPORTUNITY FOR THE AUDIENCE. >> THAT'S RIGHT SO THE KEY IS TO FIND THE WINNERS THAT WILL DOUBLE IN THE NEXT THREE TO FIVE YEARS RATHER THAN ONE THAT COULD STAY HERE. >> IS A THREE TO FIVE DAYS, I'LL TAKE THREE TO FIVE YEARS. ONE YOU LIKE, I SAW SAMSUNG AND MICRON DROP OUT OF THIS CONTROLLERS AND APPARENTLY A LAB IS ONE OF THE BENEFICIARIES OF THIS. >> IT'S ONE OF THE MAKERS OF SEE XL AND I THINK THAT WILL BE A BIG MARKET FOR THEM. THE MARKET SEEMS A FEW WEEKS AGO, AND TIES, WE EXPECTED TO DOUBLE, WITH NUMBNESS COMING IN, BUT IT WILL BASICALLY DOUBLE FROM 600 MILLION TO A BILLION IN MARKET CAPS OFF COMPANIES LIKE A LAD AND MARGO ARE GOING TO BENEFIT. >> YOU LIKE TEN CORE, WHAT IS THIS STORY THAT DIFFERENTIATES FROM OTHER SEMICONDUCTORS? >> KLA ARE NOT A SEMICONDUCTOR, THEY ARE A UP NEXT STORY SO IF YOU LOOK AT THE SEMIS, THE BEST RISK REWARD IS IN BASICALLY WHERE TSMC AND MICRON'S OF THE WORLD WILL SPEND THE CAPITAL SO THEY MAKE CAPITAL EQUIPMENT RATHER THAN SEMIS THAT'S A BIG DIFFERENCE. THE CYCLE IS LIKE LAST YEAR AND THIS YEAR THERE WAS NO CAPACITY FOR ANYTHING. >> WE CAN SEE THE STOCK IS AN EXIT RUN, HOW MUCH FURTHER? >> WE HAVE THREE YEARS OF VISIBILITY, DEFINITELY ONE AND A HALF YEAR MEMORY CYCLE, IF NOT MORE AN