1 00:00:00,080 --> 00:00:03,040 Speaker 1: Let's got to Andrew Curtaine, Milford Asset Management. Andrew, good evening. 2 00:00:03,960 --> 00:00:05,240 Speaker 2: Hi, Right, how are you? Yeah? 3 00:00:05,240 --> 00:00:06,920 Speaker 1: Really well, thanks, good to have you on the show. 4 00:00:06,960 --> 00:00:11,320 Speaker 1: Tech stocks the kind of coloring back half their losses today. 5 00:00:12,520 --> 00:00:14,920 Speaker 2: Yeah, that's right. We had one point five percent rally 6 00:00:15,000 --> 00:00:18,760 Speaker 2: in the Nasdaq, which is against the three percent full yesterday. 7 00:00:19,920 --> 00:00:22,239 Speaker 2: What's what's sort of going on today is people starting 8 00:00:22,239 --> 00:00:24,640 Speaker 2: to learn a little bit more about this Chinese company, 9 00:00:24,760 --> 00:00:28,960 Speaker 2: Deep Seek, which is an AIA model company and came 10 00:00:29,040 --> 00:00:31,200 Speaker 2: up yesterday announced and it had models almost as good 11 00:00:31,200 --> 00:00:34,479 Speaker 2: as chat GBT, sort of the leading model player. But 12 00:00:34,479 --> 00:00:38,280 Speaker 2: people now starting to learn that, you know, maybe this 13 00:00:38,360 --> 00:00:40,479 Speaker 2: is actually good for the AI industry. Maybe this is 14 00:00:40,520 --> 00:00:44,680 Speaker 2: good for the overall market because if you've got sort 15 00:00:44,680 --> 00:00:49,159 Speaker 2: of fast improvements in AI model efficiencies, that means everyone's 16 00:00:49,159 --> 00:00:52,720 Speaker 2: going to be able to access generative AI earlier and 17 00:00:52,760 --> 00:00:55,160 Speaker 2: at a lower cost points. So so really the market's 18 00:00:55,160 --> 00:00:57,360 Speaker 2: starting to consider is this a positive thing? 19 00:00:57,960 --> 00:01:01,280 Speaker 1: Who's most affected by the I'm talking negative here. Who's 20 00:01:01,320 --> 00:01:03,600 Speaker 1: most affected by this are the tech firms? 21 00:01:04,440 --> 00:01:07,400 Speaker 2: Yeah, we think the big loser is the unlisted company 22 00:01:07,480 --> 00:01:11,200 Speaker 2: open Ai. This is a company that owns chet GBT, 23 00:01:12,000 --> 00:01:14,720 Speaker 2: it's sort of considered the model or the AI model 24 00:01:14,800 --> 00:01:17,759 Speaker 2: leader at the moment in the world, and deep seek 25 00:01:17,880 --> 00:01:20,679 Speaker 2: is now showing that with you know, actually a lot 26 00:01:20,840 --> 00:01:23,920 Speaker 2: lot lower cost people talking about between ten to twenty 27 00:01:23,920 --> 00:01:26,280 Speaker 2: times lower cost. Is built a model which is which 28 00:01:26,319 --> 00:01:28,480 Speaker 2: is almost as good or as good as chet GPT. 29 00:01:28,720 --> 00:01:31,640 Speaker 2: So they're sitting their loser, they'll be they'll be panicking 30 00:01:31,680 --> 00:01:33,320 Speaker 2: at the moment and trying to sort of work out 31 00:01:33,400 --> 00:01:37,160 Speaker 2: what to do the next Probably the next biggest loser 32 00:01:36,920 --> 00:01:39,080 Speaker 2: or the company that say has got a higher risk 33 00:01:39,200 --> 00:01:42,600 Speaker 2: level now is Nividia. So Nibvidia benefits from selling a 34 00:01:43,240 --> 00:01:47,080 Speaker 2: lot of high performance chips to companies like open Ai. Now, 35 00:01:47,120 --> 00:01:49,800 Speaker 2: if you've just made models more efficient, you don't necessarily 36 00:01:49,840 --> 00:01:53,440 Speaker 2: need as many of these chips, So Navidia is, let's say, 37 00:01:53,480 --> 00:01:55,600 Speaker 2: the risk that people might not be buying as many 38 00:01:55,600 --> 00:01:58,000 Speaker 2: of these chips from Nividia has gone higher. We'll get 39 00:01:58,040 --> 00:02:00,840 Speaker 2: a bit more color from this, and we have Microsoft 40 00:02:00,840 --> 00:02:03,640 Speaker 2: and Meta Results reporting tomorrow morning, and they should talk 41 00:02:03,680 --> 00:02:06,120 Speaker 2: a little bit about sort of outlook for CapX, which 42 00:02:06,120 --> 00:02:08,200 Speaker 2: basically means how many chips are they going to buy 43 00:02:08,280 --> 00:02:08,880 Speaker 2: from Nvidia. 44 00:02:09,120 --> 00:02:12,600 Speaker 1: It's interesting because what Donald Trump's reaction has been is like, well, 45 00:02:12,639 --> 00:02:15,520 Speaker 1: this is great for competition. We should have been on 46 00:02:15,560 --> 00:02:18,400 Speaker 1: the ball with this. China's actually doing something right here, 47 00:02:18,840 --> 00:02:21,040 Speaker 1: and I guess they'll now be looking at deep Seak 48 00:02:21,200 --> 00:02:24,280 Speaker 1: as they did with TikTok for national security concerns. 49 00:02:25,200 --> 00:02:28,040 Speaker 2: That's right. There's actually announcement overnight from the White House 50 00:02:28,080 --> 00:02:31,120 Speaker 2: who came out and said that the National Security Council 51 00:02:31,240 --> 00:02:36,040 Speaker 2: is reviewing the implications of deep Seek. And they've also said, 52 00:02:36,160 --> 00:02:38,280 Speaker 2: and Trump's been saying this the last couple of days, 53 00:02:38,280 --> 00:02:41,079 Speaker 2: that it's a wake up call to the American AI industry. 54 00:02:41,360 --> 00:02:46,000 Speaker 2: So put this in context. Trump is really pro American 55 00:02:46,080 --> 00:02:50,680 Speaker 2: AI leadership. He wants America to dominate the AI industry, 56 00:02:51,280 --> 00:02:53,320 Speaker 2: so he's going to do everything he can to make 57 00:02:53,320 --> 00:02:55,120 Speaker 2: sure America maintains this leadership. 58 00:02:55,639 --> 00:03:00,360 Speaker 1: And here at home, the only real big mover was infertil. 59 00:03:01,040 --> 00:03:04,000 Speaker 2: The inperto was down four percent yesterday, down I think 60 00:03:04,040 --> 00:03:06,640 Speaker 2: another one and a half percent or so today. The 61 00:03:06,680 --> 00:03:09,400 Speaker 2: reason for that is in Fortool's largest investment is a 62 00:03:09,560 --> 00:03:14,040 Speaker 2: data center company called CDC. So you know, same sort 63 00:03:14,040 --> 00:03:16,799 Speaker 2: of theory with Navidia having high levels of risk, but 64 00:03:16,960 --> 00:03:19,880 Speaker 2: maybe there's going to be less growth in data centers 65 00:03:19,960 --> 00:03:22,120 Speaker 2: overcoming years. But you know, it's hard to tell us 66 00:03:22,160 --> 00:03:25,359 Speaker 2: early stages. CDC sort of very good business and he's 67 00:03:25,400 --> 00:03:27,440 Speaker 2: doing well, so the market's kind of racked in first 68 00:03:27,440 --> 00:03:28,880 Speaker 2: and probably digestive information. 69 00:03:29,800 --> 00:03:31,680 Speaker 1: Good on it. Great to have you on the show, Andrew. 70 00:03:31,720 --> 00:03:33,560 Speaker 1: Andrew Curtaine, Milford Asset Management. 71 00:03:36,360 --> 00:03:39,520 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 72 00:03:39,640 --> 00:03:42,680 Speaker 2: news talks. It'd be from four pm weekdays, or follow 73 00:03:42,720 --> 00:03:44,480 Speaker 2: the podcast on iHeartRadio.