TECH RACE HEATS UP: AI’s role in foreign policy with China revealed

OVERALL, THE BIGGEST ISSUE WITH THIS AI REVOLUTION IS THE QUESTION OF MONETIZATION, PARTICULARLY AI OF THE HEART OF THE ANXIETY AND PROBABLY REMAINS A DARK CLOUD INTO THE MOST SKEPTICS ARE SILENCED MARK CUBAN JUMPED IN WITH MICHAEL BERRY SAYING DATA CENTERS WILL BE A BUST IN THE PICKLE BALL COURTS IN THE CHINA BUT. WE TALK A LOT ON THIS SHOW AND WE DID LEARN THE WHITE HOUSE WILL CHIME IN SOON, ACCORDING TO THE INFORMATION MOTHER WILL BE A GATHERING OF AI COMPANIES AND MAJOR PLAYERS FOR FRAMEWORK AND EARLIER THIS MORNING IT WAS POSTED ALLOWING AND PROFIT TO KEEP OUT CHINESE RIVALS OR LOOP POLLUTING TO THEM BUT GIVE THEM THE TOOLS TO MAKE TRILLIONS TO INFECT AMERICANS. IF YOU WATCH, I WANT TO GIVE IT AWAY. SPIRIT AND THUS FOUNDER, HE RECENTLY MADE A TABLE ABOUT THE PRICING WITH OPEN AI DROPPING PRICES BUT WHEN THIS CAME OUT IT WAS A HUGE BLOW UP IN SOME FOLKS A LOT OF FOLKS, OPEN SOURCING, I'M NOT SURE IF THEY ARE SAYING WE SHOULD USE THE AI FROM CHINA BUT WHERE DO YOU SEE IT GOING? >> I THINK THERE'S A SPACE FOR OPEN SOURCE AND CLOSED SOURCE MODELS. CLOSED SOURCE WILL ALWAYS BE AT THE FOREFRONT OF INNOVATION AND WHY YOU NEED THEM. OPEN SOURCE MODELS WILL ALWAYS BE CHEAPER AND OFFER A GOOD ALTERNATIVE DEPENDING ON USE CASE BUT ULTIMATELY YOU NEED BOTH. >> AND OPEN SOURCE CHINA LED TO CONNECT MARKET SHARE TRILLIONS OF DOLLARS OF INVESTMENTS GO UP IN SMOKE? >> ABSOLUTELY CHINESE OPEN MODELS CAN TAKE UP MARKET SHARE BUT YOU CAN SEE GPT NOW WITH THE RECENT DROP IS COMPETITIVE SO IT'S ALL AT THE END OF THE DAY, DEPENDING ON THE APPLICATION. >> SO FAR, AND PROPER, OPEN AI TO KEEP LOWERING THE PRICE, LOWER PRICES, AND MAYBE MORE USERS, BUT IS THERE A SWEET SPOT LIKE OIL PRODUCER SAYING YOU LIKE ABOVE 80 OR BELOW 60 BECAUSE IT HURTS ONE WAY OR THE OTHER, IS THERE A SWEET SPOT HERE? >> EACH TIME THERE'S A NEW MODEL WILL BE PRICED IN THE HIGH END AND THEN LOWER PERFORMING MODELS WILL TRADE AT A DISCOUNT SO END OF THE DAY THAT'S HOW WE SEE IT EVOLVING. PRICE WILL GO UP AND MARGINS GO UP BUT THE COMPANY IS INTRODUCING IT AND IF SUCCESSFUL, THEY WILL CAPITALIZE IT, OTHERWISE THE VALUE CHANGE WILL CAPTURE THE UPSIDE. >> AI STACK GAVE YOU CREDIT BUT IT'S NOT ONE OF YOUR SPECIALS, IS IT? YOU PUT OUT YOUR AND THAT'S ONE OF THE FIRST TIMES I SAW YOUR WORK AND HELP EDUCATE ME SO EVERYONE IS THINKING THIS IS WHERE SCARCITY CHIPS AND ENERGY, THIS IS WHERE OPPORTUNITIES ARE, WHERE ARE THEY GOING EVENTUALLY? >> THERE'S A LOT OF OPPORTUNITY IN THE HARDWARE VALUE CHAIN, THEY ARE SHIFTING FROM ONE PLACE TO ANOTHER SO NVIDIA AND CHP USE WAS THE MAIN OPPORTUNITY THREE TO FOUR YEARS AGO AND MEMORY THE PAST YEAR WE NOW SEE OPTICS IS A BIGGER OPPORTUNITY AND EQUIPPED NAMES BENEFITING SO THE BULK OF THE MONEY YOU SAW FROM THE HYPER SCALER SPENDING IS STILL SPENT ON THE HARDWARE. >> WHAT ABOUT APPLICATIONS? >> IT WILL DRIVE SIGNIFICANT VALUE IN THE COMPANY'S ARE THE FOREFRONT TO CAPITALIST BECAUSE THEY HAVE THESE VALUABLE MODELS SO THEY CAN HAVE APPLICATIONS. THE KEY WILL BE WILL BE DISCUSSING HOW LONG TO MAINTAIN A MARGIN SO I THINK THAT'S PART OF THE VALUE CHAIN, A LITTLE MORE COMPETITIVE THAN THE HARDWARE WE KNOW THE PLAYERS SO ONE IS MORE TYPICAL SO YOU NEED TO UNDERSTAND THE CYCLICALS AS HARDWARE AND THE OTHERS COMPETITIVE. >> YOU WILL ABOUT GOOGLE AND AMAZON PRODUCING THEIR OWN CHIPS IN THE NUMBERS FOR OUTRAGEOUS AND IT CAN BE A MONSTER MONEYMAKER, IS THIS ANOTHER PART OF PROPOSITION NOW? >> BIGGER THAN GOOGLE AND AMAZON IS THE REST OF THE VALUE CHAIN BECAUSE WHAT ENDS UP HAPPENING IS EVERY TIME NVIDIA MAKES THE GPU, THEY BENEFIT, BUT NOT AS MUCH AS THE GOOGLE OR AMAZON MAKES IT BECAUSE THEY HAVE A LOT MORE NETWORKING CONTENT FROM 30 PARTY SO THIS IS WHAT AMAZON IS WINNING AND THERE BENEFITING IN AN OUTSIZED WAY. >> YOU WOULD ADD TO THESE ON WEAKNESS WHY DO YOU THINK CHP CLAIMS ARE UNDER PRESSURE TODAY? >> MEMORY IS UNDER PRESSURE BECAUSE OF THE CAPACITY WORRIES PEOPLE ARE FOCUSING ON. THERE'S WORRIES ABOUT NVIDIA WITH OPEN SOURCE. A DEFENSIVE MOVE ON THEIR PARTS OF THE BROADER CHIP TRADE IS NOT ALL ROSES BUT SUMMIT CAP EQUIPMENT PART IS ATTRACTIVE SO RIGHT NOW PEOPLE ARE SELLING SEMICONDUCTOR INDEX BUT NOT NECESSARILY EXPOSED. >> ANY WEAKNESS TO BUY THESE SPECIFIC NAMES. HE LIKED OPTICS NAMES AS WELL, MOMENTUM WHICH BOUNCED OFF A 200 DAY MOVING AVERAGE AND COHERENT. ANY REASONS THEY PULLED BACK SO MUCH OF THE EVENT GETTING AHEAD OF THEIR SKIS FOR A MOMENT? >> THE OPTICS TRADE IS 2027 TRADE SO. >> DEFINITELY OVER THEIR SKIS OF IT. >> EXACTLY. WHAT'S HAPPENING IS LOOKING AT 27, INVESTORS WILL COME BACK TO THESE NAMES. I THINK IT WILL BE SIMILAR TO HOW THEY ARE AND MEMORY AND THE POTENTIAL FOR A SIMILAR TYPE AND 27 AND RIGHT IS THE MOST EXCITING OPPORTUNITY. >> IT'S COME DOWN A LOT, SO THIS MIGHT BE THE TIME. THANK YOU VERY MUCH APPRECIATE IT. >> KEVIN WARSH FACING IT IS. FINANCIAL MEDIA HAS A NEW TERM. A CRISIS OF CREDIBILITY.