Speaker 1: Gene Monster joins us here on the technology of the moment.
Speaker 2: Gene Monster, I want to go bigger.
Speaker 1: Broader with you because we sort of beat the death,
Speaker 1: you know, the Minutia news and all that on in
Speaker 1: video and more iPhones out of Nikai saying Apple's doing better.
Speaker 1: Scott Galloway is one of the wisest people I know,
Speaker 1: and in some interview gene Monster, Scott Galloway said, basically
Speaker 1: the single most important thing in his life is he's
Speaker 1: never listened to people who said sell Microsoft, sell Apple,
Speaker 1: and now sell Invidia. Time Magazine Norman Seth the famous
Speaker 1: photograph nineteen eighty four of Steve Jobs cross legged on
Speaker 1: a living room floor with that ugly mac. The rich
Speaker 1: kids owned it a million years ago.
Speaker 2: How does gene.
Speaker 1: Monster react emotionally when it's out there these tech juggernauts
Speaker 1: sell Microsoft, sell Apple, selling video.
Speaker 3: Well, I think the how I think about it is
Speaker 3: just what's the long term. You got to think the
Speaker 3: long term play, and there's the new term, and that's
Speaker 3: what's the vortex that's going around in Vidia today. And
Speaker 3: I generally react to a view of where the world
Speaker 3: is going. In the case of within Vidia, it's a belief,
Speaker 3: a strong belief I'm staking my career that AI is
Speaker 3: going to be a bigger having a bigger impact than
Speaker 3: the Internet. And if that's the case, this trading around
Speaker 3: in Nvidia today is largely noise, even though it is
Speaker 3: a three trillion dollar company. And the reason why I
Speaker 3: still am comfortable and think of this in that same
Speaker 3: class as Apple and Microsoft is that, ultimately is if
Speaker 3: you believe that AI is going to be is transformative,
Speaker 3: more transformative than the Internet. And there's a second belief
Speaker 3: you have to have is that the way to get
Speaker 3: there is through scaling laws, which basically say you have
Speaker 3: to throw more compute in data at the problem to
Speaker 3: solve for intelligence. Then Nvidia is going to be a winner,
Speaker 3: and I think that it is in a great place.
Speaker 3: I do want to add one an angle to an
Speaker 3: additional angle to the context of just buy and hold forever.
Speaker 3: Is that deep water we own in video. I think
Speaker 3: the next two years are going to be far better
Speaker 3: than what people are expecting today. But at some point,
Speaker 3: when you're a hardware only company, there is a point
Speaker 3: of deceleration that needs to be taken into consideration. And
Speaker 3: I think that two years, three years from now this
Speaker 3: may be a position that will trim, but we think
Speaker 3: today is the time to own.
Speaker 2: It, Gene.
Speaker 4: When somebody like you, Geene Mounts Says, are staking their
Speaker 4: career on this, that really really resonates for a lot
Speaker 4: of our listeners and viewers. Gene, can you just remind
Speaker 4: us how you view AI in a context of the Internet, electricity,
Speaker 4: stuff like that, because that really hit home when you go,
Speaker 4: I first heard you say that.
Speaker 3: So I mean I guess that believe that this is
Speaker 3: going to be transformed with a kind of struggle for
Speaker 3: the right of nowlogy is it the Internet, is it mobile?
Speaker 3: Is it electricity? And at the core of humanity is
Speaker 3: intelligence And the concept of having intelligence in real time
Speaker 3: at scale is something that it's hard to put a
Speaker 3: value on it. I think it's much more valuable than
Speaker 3: connecting machines and connecting data. As powerful as that has been,
Speaker 3: I think intelligence is a powerful a more powerful aspect
Speaker 3: to it. And so there is a piece of a
Speaker 3: huge missing piece around the substance of what does that
Speaker 3: actually mean, like how is that going to impact our lives?
Speaker 3: And the use cases and the examples have been few
Speaker 3: and far between about how AIS like profoundly impacting our lives.
Speaker 3: I just want to give one quick example. If we'd
Speaker 3: go back in a time machine in ninety five and
Speaker 3: be talking about the potential of the Internet, we could
Speaker 3: easily frame out what that Facebook was going to happen
Speaker 3: with social connecting over the Internet. We could see what
Speaker 3: that Netflix was coming around the corner with video over
Speaker 3: the Internet. But it would have been impossible for us
Speaker 3: to understand that the smartphone was going to come because
Speaker 3: that was obviously enabled by the Internet. Those kind of
Speaker 3: second and third derivatives. And that's kind of similar to
Speaker 3: how I think about AI more broadly. And I'm not
Speaker 3: concerned that we don't have these killer use cases today
Speaker 3: because I think that those will present themselves as we
Speaker 3: reach closer to general and eventually super intelligence, which is
Speaker 3: where it really gets crazy.
Speaker 1: Were you surprised by the iPhone build out reported by
Speaker 1: Nike today in Nickai rather in Tokyo.
Speaker 2: Did that surprise your team.
Speaker 3: Gene, I'm not surprised. I think what is most important
Speaker 3: is that when I think about this next iPhone cycle,
Speaker 3: you have to it comes back to this belief, and
Speaker 3: do you think that these features are going to be
Speaker 3: exciting for people, and I just I don't worry about
Speaker 3: what kind of the near term builds are, whether they're
Speaker 3: positive or negative. What I think about is is are
Speaker 3: these features people will want? And I just quickly go
Speaker 3: back for I look back over kind of last seventeen
Speaker 3: iPhone cycles and try to compare what these AI features
Speaker 3: are going to do for demand, and I think it's
Speaker 3: similar to the iPhone six plus that was the first.
Speaker 2: Large right, Oh, yeah, you have the iPhone six plus.
Speaker 4: Yeah, I think so, But I'm upgrading soon, Geane.
Speaker 2: That's good.
Speaker 3: You're right there. You're only ten years, ten years in
Speaker 3: and it's time Paul. But the iPhone growth I went
Speaker 3: from twelve percent for the iPhone five cycle to fifty
Speaker 3: two percent. I mean, it had a profound impact on
Speaker 3: how people got excited about these devices. One just more
Speaker 3: quick thought about how I think about the cycle is
Speaker 3: that the if we look at the total number of
Speaker 3: iPhones that are out there, there's about one point five
Speaker 3: billion active iPhones. The act the life is just over
Speaker 3: five years average life of an iPhone. And if you
Speaker 3: take the next tranch, so take not the one that
Speaker 3: typically upgrades this year, but the one that's going to
Speaker 3: typically upgrade in late twenty twenty six, and you assume
Speaker 3: ten percent of those just ten percent of those see
Speaker 3: these AI features and say yes, I'm going to buy it.
Speaker 3: A year early, the iPhone growth goes from seven to
Speaker 3: fifteen percent, and so the sensitivity around just getting a
Speaker 3: small piece of that massive pool to move forward is
Speaker 3: going to have a measurable impact on the business.
Speaker 2: Gene thank you, Gene Monster.
Speaker 1: With this thank you, I say really really appreciating, congratulations
Speaker 1: to our team.