Speaker 1: From the heart of where innovation, money and power collide
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Caroline Hyde and Ed Ludlow.
Speaker 2: Live from New York. This is BlueBag Technology coming up.
Speaker 2: In Vidia takes center stage at CES with new hardware,
Speaker 2: software and services. For the stock falls, We sit down
Speaker 2: with it's CEO, Jas and Wang. Later this hour plus,
Speaker 2: Metad cuts its team of fact checkers, saying content moderation
Speaker 2: went quote too far, and the US places some of
Speaker 2: China's biggest tech giants on its military blacklist. But first
Speaker 2: we check in on the key stop. You have to
Speaker 2: watch today. It is the most valuable three point six
Speaker 2: trillion dollars and it dies by four and a half percent,
Speaker 2: in Vidia losing its pre market gains. We had touched
Speaker 2: a new record high and now we sink the worst
Speaker 2: days at September. Why we got a whole raft of products,
Speaker 2: whether it's hardware, software, services, whether it's the future of
Speaker 2: robotics from autonomous driving, from PCs and gaming. But is
Speaker 2: it the here and now, the Blackwell program and platform
Speaker 2: that we don't get enough detail on. Let's head out
Speaker 2: to Las Vegas. Big story, of course, is in Vidio
Speaker 2: and the CEO in veiling these products, we've got none
Speaker 2: other than a key focus on the gamer, the original
Speaker 2: customer from Jensen Wang. Have a listen.
Speaker 3: We used g force to enable artificial intelligence, and now
Speaker 3: artificial intelligence is revolutionizing g Force everyone. Today we're announcing
Speaker 3: our next generation, the RTX Blackwell family.
Speaker 2: Let's go to our gamer in residence, Ed Ludlow on
Speaker 2: the ground at CES. There was going back to their roots,
Speaker 2: the GPU for the gamer. There was so much much more,
Speaker 2: but the stock doesn't like it.
Speaker 4: Yeah, I mean, we've become so accustomed to the nvidious
Speaker 4: story of being dominant in a market for high performance
Speaker 4: GPUs that go into data centers and train AI models,
Speaker 4: foundation models. But it isn't going back to its roots story, right.
Speaker 4: It's taken the work that it's done on those AI
Speaker 4: accelerators and put them into a factor that is more
Speaker 4: relevant to the consumer developers in particular, and maybe the
Speaker 4: market this morning doesn't quite understand that story. There was
Speaker 4: plenty of big picture last night from Jensen One. Blackwell
Speaker 4: is in full production, a kind of timeline or a
Speaker 4: move into physical AI, which we'll get into robotics autonomous driving.
Speaker 4: But maybe also a conversation to be had around diversifying revenue.
Speaker 4: One hundred billion dollars of revenue is still data centerships,
Speaker 4: but increasingly those high performance graphics cards that go into
Speaker 4: the desktop laptops and something called project digits.
Speaker 5: There's a lot to discuss.
Speaker 2: That PC or on the three thousand dollars PC for
Speaker 2: AI developers. And look, there is a macro context to
Speaker 2: the share move today. We of course got some ism data,
Speaker 2: we got yield spiking higher, and no wonder some of
Speaker 2: the big tech names arounder pressure. What's interesting is some
Speaker 2: of the suppliers, for example a Micron still leading the
Speaker 2: charge here as its memory is going to be within
Speaker 2: the Nvidia offering. There was a lot to be had
Speaker 2: for some of the partnerships to play.
Speaker 4: Yeah, and as you know, Caro, it's Bloomberg's policy not
Speaker 4: to give questions an advance of interview, and there are
Speaker 4: all these Nvidia.
Speaker 6: Staff over my shoulder.
Speaker 4: But probably the one big question is the sustainability of
Speaker 4: the investment into AI. Those other chip names are pushing
Speaker 4: higher because when an investment is made into a high
Speaker 4: performance GPU, it goes in combination with the memory chips,
Speaker 4: other CPUs and all of the telematics from those other providers.
Speaker 4: That probably is the key question for Jensen, particularly in
Speaker 4: a year where things run certain economically and I see
Speaker 4: a bit of a concern about inflation in the market
Speaker 4: this morning.
Speaker 5: Jensen has a lot of world views.
Speaker 4: Whether he'll talk to me about inflation, we'll have to
Speaker 4: wait and see.
Speaker 2: At Ludlow, we cannot wait for the conversation. We'll see
Speaker 2: you a little bit later. Let's get an investor's take
Speaker 2: on the here and now lack of visibility on Blackwell
Speaker 2: or or indeed the future proofing of the business model.
Speaker 2: Cebi's Investment Advisory Services CIO Anna Rathbun.
Speaker 7: We tuned in.
Speaker 2: At six thirty Pacific time as nine thirty pm New
Speaker 2: York time. When we heard Jensen on stage, what did
Speaker 2: you make you? In line with some of these analysts
Speaker 2: who are out there saying, look not enough on the
Speaker 2: Blackwell platform.
Speaker 8: Yeah, there weren't that many details that investors were hoping for.
Speaker 8: But if you have to talk for ninety minutes plus
Speaker 8: almost two hours, I'm not sure if you can fill
Speaker 8: those that timeline with a lot of details about the business.
Speaker 7: And plus you know he's kicking.
Speaker 8: Off a conference, you sort of want to be a
Speaker 8: visionary and there is this a little slab of romanticism
Speaker 8: about AI thrown in there, So you know, I think
Speaker 8: maybe it was the wrong platform to really wait for
Speaker 8: some of those details. But I know that the excitement
Speaker 8: was built into the stock market certainly yesterday, so I
Speaker 8: can understand the disappointment. But at the same time, maybe
Speaker 8: maybe we need to wait for the earnings report.
Speaker 2: And we're currently showing a five day shot of in video,
Speaker 2: which gives us the context. It is ratherly eleven percent
Speaker 2: in January. We're maybe seeing some profit being taken off
Speaker 2: the table a little bit, hair Ona, But what did
Speaker 2: you make of what it means for its mote, for
Speaker 2: its ultimate leadership and technology? Does AMD do others even stand.
Speaker 6: A chance here?
Speaker 8: Well, you know, I think the leadership part of the
Speaker 8: visionary talk was establishing that leadership. I think in Video
Speaker 8: wants to be a leader and wants to continue to
Speaker 8: be a leader. So you're taking things like you know,
Speaker 8: self driving cars and partnership with Toyota and media attach.
Speaker 7: Those are real things that can turn into cash flow.
Speaker 8: But then you know, you have visionary things like humanoid
Speaker 8: and chance gypt turning into you know, robotics, right, turning
Speaker 8: into but robotics having a moment, right.
Speaker 7: So these are the things that.
Speaker 8: I think establish Nvidia, at least in rhetoric, as a
Speaker 8: continued leader in the space. And whether or not AMDs
Speaker 8: and other players can catch up.
Speaker 7: I do think that Nvidia still.
Speaker 8: Has a large, you know, sort of monopoly in the space.
Speaker 8: The reality of catching up to Nvidia, I think is
Speaker 8: still a difficult.
Speaker 2: Feat and that's why i'mdphaps leaning into the PC side
Speaker 2: of the business with its Dell announcement rather than trying
Speaker 2: to talk up AI accelerate as in the data center part.
Speaker 2: And to that point, are you feeling comfortable that we're
Speaker 2: seeing diversification or at least that the demand for infrastructure
Speaker 2: from a data center perspective is still there. Microsoft eighty
Speaker 2: billion that they're going to spend in twenty twenty five
Speaker 2: seems to signal.
Speaker 8: That, yeah, I don't think this AI venture is going
Speaker 8: to stop. And certainly, you know, likes of Microsoft and
Speaker 8: some of these big companies are putting big dollars into it.
Speaker 8: But we can't forget about the private side either. There
Speaker 8: are a lot of venture companies that are going to
Speaker 8: require as their develop of being applications for real businesses
Speaker 8: on the user end, they're going to have to lean
Speaker 8: into some of that infrastructure like data centers and ultimately
Speaker 8: energy too. But that's not a conversation for today. So
Speaker 8: I think I think the demand for this is not
Speaker 8: going to ease up.
Speaker 2: Can you give us your macro perspective here though as well?
Speaker 2: We were just talking how on a macro perspective, maybe
Speaker 2: we are seeing that feed into the stock weakness. Do
Speaker 2: you still your mind be thinking about inflationary pressure? Does
Speaker 2: that have any weight on a company that just is
Speaker 2: so in focus for its innovation, not just the macro headwinds.
Speaker 7: Yeah.
Speaker 8: So you know, when I think about macro headwinds such
Speaker 8: as inflation and prices, I think about who has the
Speaker 8: pricing power?
Speaker 7: Right, So if you're in Nvidia and you.
Speaker 8: Have dominance in a marketplace, you have the pricing power.
Speaker 8: So I don't think Nvidia is necessarily, you know, thinking
Speaker 8: about whether or not they have they can pass down
Speaker 8: any kind of inflation or price increases.
Speaker 7: I think it's really on the consumer end.
Speaker 8: I think it's on the end of the other max
Speaker 8: evens that need to develop the R and D aspect
Speaker 8: of it, they're going to have to worry about the
Speaker 8: inflation portion.
Speaker 2: Interesting. So for you, if you're looking at portfolio at
Speaker 2: the start of twenty twenty five and you're thinking how
Speaker 2: you're going to be changing up, do you make any
Speaker 2: key decisions of the back of the latest inflation three points?
Speaker 8: You know, our assumption has always been that it's going
Speaker 8: to be higher for longer, both on the inflation area
Speaker 8: as well as rates.
Speaker 7: So our portfolio is already positioned for it.
Speaker 8: We never really thought that inflation could go down to
Speaker 8: two percent it you know, I'm going to use the
Speaker 8: word safely without causing some kind of a slowdown in
Speaker 8: the economy. And frankly, even if it does, it's really
Speaker 8: in the cyclical areas of the economy, and I think
Speaker 8: tech has some immunity from that cyclicality simply because there's
Speaker 8: just way too much momentum going into this AI venture.
Speaker 2: And raf fan so good to have you, CIOC BIZ
Speaker 2: Investment Advisory Services stay well. Coming up, META looks back
Speaker 2: on fact checking across its social media platforms or on that.
Speaker 2: Next this is Bloomberg Technology. Yet more big news auta Meta.
Speaker 2: Today it's announced that it will end third party fact
Speaker 2: checking on its social media platforms, saying content moderation went
Speaker 2: too far, so instead, the company will allow users to
Speaker 2: comment on our post's accuracy, adopting a kind of format
Speaker 2: similar to excess community notes. This, of course follows some
Speaker 2: notable changes to its board as well. For more bloombergs
Speaker 2: Lin Duine joins us for more fascinating moves. It's moving
Speaker 2: safety and content moderation teams from California to Texas and
Speaker 2: ultimately relying on its userbase now.
Speaker 9: It is very fascinating and obviously, as you said, further
Speaker 9: aligns Meta to the x approach of content moderation and
Speaker 9: fact checking, which is to sort of crowdsource. One cannot
Speaker 9: ignore the underlying trend here. It's clear that over the
Speaker 9: past several months, Mark Zuckerberg has tried to repair, if
Speaker 9: you will, his relationship with president incoming President Donald Trump.
Speaker 9: That has been a relationship that has in the past
Speaker 9: been fairly adversarial. I don't need to remind you that
Speaker 9: at one point Trump was suspended on Meta's platforms briefly
Speaker 9: and has since been reinstated, and since then Zuckerberg has
Speaker 9: personally contributed to his inauguration fund and has made efforts,
Speaker 9: as you have said, to make appointments that would be
Speaker 9: more conducive to a relationship with the Trump administration coming in.
Speaker 2: I mean, it's interesting that this is basically the first
Speaker 2: announcement coming from Jill Kaplan, who is now the chief
Speaker 2: Global Affairs Officer as Clegg moved stage right. And we're
Speaker 2: not only getting a more right leaning global affairs officer,
Speaker 2: but we're also getting Dana White UFC coming to the
Speaker 2: board of MATA.
Speaker 9: That's right, and as you probably recall, Dana White was
Speaker 9: a very vocal Trump supporter. He was actually featured in
Speaker 9: Trump's first video on TikTok, another social media platform. So
Speaker 9: a good fit because you know, Dana White and Mark
Speaker 9: Zuckerberg have a pre existing relationship.
Speaker 5: They for a long time.
Speaker 9: Right, They share a very strong interest in the same sport.
Speaker 9: So in a lot of ways, it makes sense for
Speaker 9: Mark and for what he's trying to do with that
Speaker 9: relationship with Trump. I think that migration for the fact
Speaker 9: checking team from California to Texas, as you mentioned, is
Speaker 9: a really interesting one.
Speaker 6: Two.
Speaker 9: Whether that's politically motivated, I don't personally know, And I
Speaker 9: think that the bigger question is, like will there be
Speaker 9: a broader pullback at Meta and some of the other
Speaker 9: social media platforms with this incoming Trump administration across all
Speaker 9: content moderation, not necessarily just fact checking, but you know,
Speaker 9: will there be a pullback in like the monitoring of
Speaker 9: disturbing content CSM content. I think that's the broader question.
Speaker 2: Ask and that leads us perfectly to our next conversation.
Speaker 2: It's as if she knows it by Magic lindaan on
Speaker 2: All Things Meta and look as metapairs back its fact
Speaker 2: check is there's exclusive reporting today showing that the FBI
Speaker 2: and the Department of Homeland Security will also scale back
Speaker 2: efforts over the past two years to disrupt violent extremists
Speaker 2: online activities. That's according to current and former US officials
Speaker 2: and internet radicalization experts actually fear that the trend will
Speaker 2: accelerate under Trump. That reporting all comes fro bloombergs Jeffstone
Speaker 2: extraordinary timing. So you're working out here that basically demotment
Speaker 2: of honand security and indeed other agencies have not wanted
Speaker 2: to tip off the social media companies as much.
Speaker 10: That's right, Caroline, since the social media companies Meta being
Speaker 10: one of them, formerly Twitter being one of them, had
Speaker 10: a long history now of flagging false COVID related information
Speaker 10: misinformation around the vaccines. There's been a lot of political
Speaker 10: pushback in Washington encouraging them not to do that. The
Speaker 10: Department of Homeland Security and the FBI have kind of
Speaker 10: become collateral damage in that larger political fight, and they
Speaker 10: are now incredibly reluctant and prevented in some cases by
Speaker 10: law from dealing with social media firms to remove some
Speaker 10: of this really incendiary violent misinformation.
Speaker 2: Yet this comes but days after the New Year's Day
Speaker 2: attack on a Trump hotel, what happened in New Orleans.
Speaker 2: I mean, the idea that extremist content isn't going to
Speaker 2: be as monitored feels pretty scary, that's right.
Speaker 10: I mean, there's certainly a trend where we are seeing
Speaker 10: these extremist attacks in almost every case. You know, it
Speaker 10: used to be a small fraction, but now in almost
Speaker 10: every case, the perpetrators or suspected perpetrators who are carrying
Speaker 10: out if these attacks are often taught talking about them online,
Speaker 10: whether it be on sites like Meta in this case
Speaker 10: or on Discord as in the case with the mass
Speaker 10: shooter in Buffalo. The FBI and DHS are still going
Speaker 10: to continue to investigate based on some of those leads
Speaker 10: that they're seeing online, but they're not going to interact
Speaker 10: with social media companies to remove that content proactively. They're
Speaker 10: going to leave that to the social media firms.
Speaker 2: What's interesting within your story, you really build out the
Speaker 2: case that since so key court ruling here that as
Speaker 2: you articulated, has pushed the DHS and the FBI, it's
Speaker 2: less weighed in, but also there's less money going to
Speaker 2: external third party researchers as well.
Speaker 5: Right, that's right.
Speaker 10: External third party researchers are a key component in this
Speaker 10: larger ecosystem. They do a lot of the work on
Speaker 10: behalf of social media companies to kind of proactively flag
Speaker 10: and detect and remove some of this really again extremist,
Speaker 10: violent material. It goes beyond a lot of misinformation. They
Speaker 10: are now taking significantly less funding from the government because
Speaker 10: of some of the political connotations and disputes around this. Specifically,
Speaker 10: some of these researchers used to receive tens of millions
Speaker 10: of dollars, whereas last year the Department of Homeland Security
Speaker 10: gave them zero dollars for Internet related research exclusive reporting.
Speaker 2: Jeff Stone, we thank you so much.
Speaker 6: Now.
Speaker 2: The US has just added China's most valuable company, Tencent,
Speaker 2: as well as Tesla battery supply Caatl to its list
Speaker 2: of quote Chinese military companies. It's a move which could
Speaker 2: accelerate decoupling of the world's biggest economies.
Speaker 5: For more.
Speaker 2: We got to get out to Bloombergs Mike Shepard, and
Speaker 2: this seemed to come out of nowhere yesterday, and even
Speaker 2: Tencent itself thought it might be a mistake.
Speaker 11: And a lot of the other companies thought so too.
Speaker 11: They were really caught off guard, as a lot of
Speaker 11: us here in Washington were. It showed up without fanfare
Speaker 11: in a publication known as the Federal Register. They Pentagon
Speaker 11: just dropped it in there. But there was a purpose
Speaker 11: to this. It dates back to twenty twenty when President
Speaker 11: Donald Trump was still in office and under an executive
Speaker 11: order from him, he asked the Defense Department to look
Speaker 11: for companies in China that had ties or actual control
Speaker 11: by China's military. And the concern is that this nexus
Speaker 11: between China's military and the business community in China post
Speaker 11: a risk to global security, and as a result, we
Speaker 11: see this listening now. It's important to note that there
Speaker 11: is no sanction attached to it. However, there is something
Speaker 11: that would discourage US firms from doing business with anyone
Speaker 11: who is on this list.
Speaker 2: I think there was initially a worry that they might
Speaker 2: be forced to delist as well, Mike, is there any
Speaker 2: reality in that. Certainly ten Cent came out with a
Speaker 2: statement saying this doesn't affect our business in the here
Speaker 2: and now.
Speaker 11: That is a really good question, Caroly, and it was
Speaker 11: one that we were chasing down yesterday. And as far
Speaker 11: as we can tell, there is no immediate threat of
Speaker 11: the listening directly as a result of this, but it
Speaker 11: does prompt eight companies here, as I said, to revisit
Speaker 11: and rethink relationships with ten Cent and others. And there
Speaker 11: are now one hundred and twenty one Chinese companies on
Speaker 11: this Pentagon list that subject them to some additional scrutiny
Speaker 11: about their relationship with China's military, and the list also
Speaker 11: includes CATL, which is one of the world's biggest battery makers.
Speaker 11: They're critical to powering the electric vehicle revolution globally, but
Speaker 11: they've also been the focus of a lot of attention,
Speaker 11: especially from Congress, including incoming Secretary of State Mark or Rubio,
Speaker 11: who when he was in the Senate had really zeroed
Speaker 11: in on CATL as a potential national security risk through
Speaker 11: the US.
Speaker 2: So read those tea leaves for US, Mike, because on
Speaker 2: one side, my immediate reaction is, well, Coatl is a
Speaker 2: big supply to Tesla, and you know, Mosk isn't going
Speaker 2: to like that. He has the air of Trump for
Speaker 2: all some purposes, we understand. But then Marco Rubio coming in,
Speaker 2: he doesn't much like c ATL. So what does the
Speaker 2: next administration mean for this?
Speaker 11: Well, the tea leaves really are tough to read here, Caroline,
Speaker 11: and that's in part because we do see this kind.
Speaker 10: Of division of loyalties.
Speaker 11: This is also playing out with the TikTok band that
Speaker 11: is about to go into effect on January nineteenth unless
Speaker 11: the company, which has a Chinese parent, is able to
Speaker 11: persuade the Supreme Court to overturn this devest or ban law.
Speaker 11: Now President of Like Donald Trump, has made clear he
Speaker 11: would like to see TikTok survive as its own entity,
Speaker 11: to exist on its own and not be banned to
Speaker 11: somehow evade this ultimate sanction as a result of a
Speaker 11: new law. One also that Marco Rubio have helped push
Speaker 11: through so we will see these kinds of tensions playing
Speaker 11: out between some of the business interests, including from Elon
Speaker 11: Musk and others, playing out right there in the White House.
Speaker 11: They're trying to get tough on China, yet need also
Speaker 11: this connection to China for business themselves.
Speaker 2: And as shocking is it might be for many that
Speaker 2: a big gaming and social network platform Tencent might be
Speaker 2: in any way deemed a military related organization. There is
Speaker 2: also past tens We've seen Shaomi, for example, as a phonemaker,
Speaker 2: but also now a carmaker is managed to get itself
Speaker 2: off the list, right, So there's potential hope.
Speaker 11: Here, Yes, there is. These companies do have a way
Speaker 11: to appeal this. They can even take it to court
Speaker 11: and contest the listing, and a number of companies like
Speaker 11: you just mentioned show Me especially, have been able to
Speaker 11: get themselves removed and struck from the list. However, when
Speaker 11: we talk about ten Cent, let's turn back the clock
Speaker 11: again to twenty twenty, when Donald Trump as president initially
Speaker 11: tried to ban TikTok, he also went after ten cents
Speaker 11: we chat app, which is this all inclusive communications and
Speaker 11: payments platform that the US government had viewed as a
Speaker 11: risk in the US by anybody who was using it
Speaker 11: here now there is not nearly as much use of
Speaker 11: we chair here as by TikTok, but we do see
Speaker 11: the same sort of argument being played out with tencent
Speaker 11: back then and perhaps the echo of it now as well.
Speaker 2: Mike Shepard, we thank you so much on all things
Speaker 2: US China. We can go just onto data centers now
Speaker 2: and get back to see yes where our own ed
Speaker 2: Ludlow is standing by with a very special guest who's
Speaker 2: probably going to benefit from that spending in the United States.
Speaker 4: D Yeah, Good morning from Las Vegas, Caroline and Jensen one,
Speaker 4: CEO of Nvidia, fresh off his keynote last night on stage.
Speaker 6: Great to see you.
Speaker 5: Welcome to Las Vegas. Thank you every new year, familiar territory.
Speaker 6: Congratulations on your new baby.
Speaker 5: Thank you very much.
Speaker 4: A lot's changed since we last spoke, actually, but of
Speaker 4: the broad spectrum of what you announced last night. New
Speaker 4: graphics cards, new chips actually technically in the automotive space,
Speaker 4: products and services on the software side, which is the
Speaker 4: single most important for in video's future.
Speaker 6: There are important you know.
Speaker 5: It's hard.
Speaker 6: It's it's hard. It's hard. It's hard to pick your favorites.
Speaker 12: You know, we announced three chips, We announced a brand
Speaker 12: new AI, a world foundation model and first of its kind,
Speaker 12: and we announced our work in three areas and robotics, right,
Speaker 12: and they're all important. And you know the thing of course,
Speaker 12: we announced a brand new Blackwell RTX and has a
Speaker 12: new AI technology called neuro Neuroshaters, and we're combining artificial
Speaker 12: intelligence and classical.
Speaker 5: Computers RTX and U RTX.
Speaker 4: Yeah, we've become so accustomed to your story being dominant
Speaker 4: in a market for high performance GPUs server ACS data centers.
Speaker 4: This is going back to your roots. It's in the
Speaker 4: desktop context. There's one right there later in the year laptop.
Speaker 4: But for a target base that is developers, a nerdy,
Speaker 4: hardcore gamment, what's the future of that business for you?
Speaker 6: Computer graphics is going to be here forever, forever.
Speaker 12: And what we've done is we've fused artificial intelligence and
Speaker 12: computer graphics together. And the images that we're generating today
Speaker 12: wouldn't be possible if not for the fact that we're
Speaker 12: using computer graphics to create beautiful pixels and then use
Speaker 12: artificial intelligence to amplify that capability. For example, out of
Speaker 12: four frames I was talking about yesterday, thirty three million
Speaker 12: pixels to SEW and four K.
Speaker 6: Now. Out of that thirty three.
Speaker 12: Million pixels, two million pixels were computed. The other thirty
Speaker 12: one million pixels were generated by AI.
Speaker 5: In other words, the AI predicts what it thinks the
Speaker 5: pixtels should.
Speaker 6: That's right, Yeah, the ultimate generator of AI.
Speaker 4: But what was interesting for me is the focus again
Speaker 4: was away from the graphics cards, away from blackweld, undependents
Speaker 4: and Cosmos. We probably don't have time to explain in
Speaker 4: full detailed Cosmos, but you call it a world foundation.
Speaker 12: Model Cosmos is for or the physical world what chat
Speaker 12: BT is for words and text.
Speaker 6: That's the easiest way to think about that.
Speaker 4: Okay, so model text input, but can generate synthetic data
Speaker 4: in multiple mediums.
Speaker 12: It understands the physical world. So for example, if I
Speaker 12: ask it a question, if I ask it to generate
Speaker 12: multiple futures of a car driving down the road, it
Speaker 12: would understand the dynamics of the world, it would understand
Speaker 12: the object permanence, it would under understand geometry and space,
Speaker 12: and it would create a driving scenario for the car
Speaker 12: that is plausible and so.
Speaker 5: And you open sourced it.
Speaker 4: So I don't really think about it as a product
Speaker 4: or a go to market. It's more about what Cosmos enables.
Speaker 4: Is that how we should think about it.
Speaker 12: Yeah, Well, the automous vehicle industry and the rovice industry
Speaker 12: is a really point to us, and we offer three
Speaker 12: computers for them.
Speaker 6: We offer it, of course, the training computer through DGX.
Speaker 12: Through DGX, the robotics computer that's inside the car or
Speaker 12: inside of robot and now we have this new computer
Speaker 12: call Omniverse with Cosmos that is the digital twin or
Speaker 12: the playground where these robots can learn how to be robots.
Speaker 12: And so if we could accelerate the development of an
Speaker 12: artificial intelligence for avs and for robotics, it brings in
Speaker 12: a lot of business for us.
Speaker 4: Of course, there's an academic point of tension here. If
Speaker 4: I may Elon Musk is a customer of yours and Tesla,
Speaker 4: their theory or practice is based on real world data.
Speaker 5: Gathered through vision.
Speaker 4: Yeah, does the synthetic data underpinning of Cosmos kind of
Speaker 4: contradict that it.
Speaker 12: Doesn't replace it augments, And so you're going to you
Speaker 12: should collect as much world data as you can. Of course,
Speaker 12: collecting world data is very expensive and Elon has a
Speaker 12: great advantage because the number one his AI factory for
Speaker 12: his cars is fantastic, has a lot of video gear
Speaker 12: in it. His av algorithms is incredible, it's the best
Speaker 12: in the world. And he has a very large fleet
Speaker 12: of cars on the road that allows him to collect.
Speaker 6: A lot of data.
Speaker 12: And so so I think he has just a phenomenal position.
Speaker 12: And he's been working on this for a long time,
Speaker 12: and so he's he's going to be in a great
Speaker 12: position to take advantage of it.
Speaker 5: Well, may I ask you that's juncture.
Speaker 4: He's clearly influential in this upcoming administration, but he also
Speaker 4: positions Tesla as a leading AI and robotics company.
Speaker 5: Yeah, how does that code for Nvidia?
Speaker 4: Elon Musk's influence the President Electrump and also thecoming administration's
Speaker 4: kind of attitude towards AI.
Speaker 6: I don't know that the attitude towards AI.
Speaker 12: I know Elon's attitude towards AI, and and he's very
Speaker 12: optimistic about his future.
Speaker 6: And obviously he's working on some of the most important
Speaker 6: AI areas.
Speaker 12: XAI is working on foundation cognitive Intelligence AI, his Tesla
Speaker 12: is working on Thomas vehicles, and optimists were humanoid robotics.
Speaker 12: These three areas of AI are the three most important
Speaker 12: areas of AI, and so I think he's working on
Speaker 12: exactly the right things.
Speaker 4: You kind of positioned AI and video's position in the
Speaker 4: supply chain for physical AI, robotics, autonomous driving.
Speaker 5: Explain it a bit more, the role you see in
Speaker 5: video play.
Speaker 12: Well, we're a core technology company, and so we build
Speaker 12: the foundational computing platforms.
Speaker 6: We're also full stack, and so we developed.
Speaker 12: The necessary algorithms and necessary AI technologies and.
Speaker 6: Then we put it.
Speaker 12: We put it out to the industry for them to
Speaker 12: adopt it and turn it into in market solutions.
Speaker 6: We're computing platform companies.
Speaker 4: So you're on stage and you're surrounded by I think
Speaker 4: a dozen humanoid robots, which.
Speaker 5: Is nice for you.
Speaker 4: When will I be here at CS and Las Vegas
Speaker 4: and actually have there are some robots right now? In
Speaker 4: real terms, you must have a timeline that you see
Speaker 4: real world commercial deployment of the technology you outlined last night.
Speaker 12: It depends on use case, I would say first use. Yeah,
Speaker 12: the first use case will probably be in manufacturing. You know,
Speaker 12: there's estimates tends, if not one hundred million jobs that
Speaker 12: are workers that are the world is short of workers
Speaker 12: and aging population, declining, declining birth rates, and so I
Speaker 12: think the world needs a lot more workers. Robotics is
Speaker 12: one of the best ways for us to supplement all
Speaker 12: of that and help companies recover the lost revenues on
Speaker 12: the one hand and drive productivity which reduces inflation for
Speaker 12: the world on the other hand. And so I think
Speaker 12: robotics is going to be very important to that in
Speaker 12: different different areas. You could have probably deploy into manufacturing
Speaker 12: first because they obviously need it most.
Speaker 4: Which you see is a ginormous potential market addressable lots.
Speaker 6: It's a fifty trillion dollar industry that wants to.
Speaker 4: Grow, and it thinks to grow. Sorry to interrupt you, Jensen.
Speaker 4: I think that something that wool Street struggling with this morning,
Speaker 4: among many things, is dg X. They understand the investment
Speaker 4: there that trains the foundation models in terms of Nvidia's
Speaker 4: business model what you outlined last night, Cosmos, and then
Speaker 4: later on on the inference side, how physical AI helps
Speaker 4: guare your business from the drives.
Speaker 5: D GX growth just simple as that.
Speaker 12: Yeah, as simple as that, I think if you if
Speaker 12: you just look at simply like that, we have three computers,
Speaker 12: and two of the computers d GX and Omniverse drives
Speaker 12: an enormous amount of data that is necessary to train
Speaker 12: the AI models right, and so Omniverse creates the data
Speaker 12: that we then use to train AI models. The training
Speaker 12: is what drives DGX sales. And the more robots that
Speaker 12: are that are available, the more data we can create,
Speaker 12: the more.
Speaker 6: AI models we have to we have to go train.
Speaker 12: That's that cycle is ultimately what we're striving for. All
Speaker 12: of that drives consumption from data center growth.
Speaker 4: There is a surge in AI spending data center growth.
Speaker 4: Some of our audience are a bit concerned about how
Speaker 4: sustainable that is, short, medium, and long term.
Speaker 12: Well, at the limit, Artificial intelligence is a single most
Speaker 12: important technology force of our time, and it's really about
Speaker 12: we're at the beginning of that and in the future,
Speaker 12: every single data center will be driven by AI and
Speaker 12: the type of computing that we build today. And so
Speaker 12: if you look at the world today, we're about a
Speaker 12: year and a half into the remodeling, if you will,
Speaker 12: the modernization, the reinvention of computing, and so I think
Speaker 12: that over the next several years you're going to see
Speaker 12: the transition from the old.
Speaker 6: Way of doing computing, general purpose computing. There's a new way.
Speaker 12: Of doing computing, artificial intelligence and accelerated computing, and so
Speaker 12: we have a lot of growth to go do.
Speaker 4: Let's go back to your and nvidious routes, and therein
Speaker 4: lies the complication, right and the story accelerated computing. You
Speaker 4: spent four years redefining the computer for me, and we
Speaker 4: get rtx Blackwell single black Well in that form factor.
Speaker 4: The target audience is hardcore gamers but also developers, and
Speaker 4: I wondered if you could give me any early examples
Speaker 4: or evidence of how you see the gaming industry adopting
Speaker 4: your technology.
Speaker 12: Well, AI is going to reinvigorate the video game industry.
Speaker 12: On the one hand, for developers, it's going to reduce
Speaker 12: the cost of creating the content. On the other hand,
Speaker 12: all of the characters that are in the games are
Speaker 12: going to be smart characters in the future, so every
Speaker 12: time you interact with them, they're going to be interacting
Speaker 12: with you in a much more intelligent way. And so
Speaker 12: the games are going to be more interesting, the characters
Speaker 12: are going to be more interesting. The content development cost
Speaker 12: is going to decline, and that's going to be really
Speaker 12: great for the industry, and so I think that the
Speaker 12: future is really bright for video games and these virtual
Speaker 12: worlds and artificial intelligence is going to really reinvigorate it.
Speaker 5: Project digits, may I pick it up? Oh yeah, yeah,
Speaker 5: three thousand dollars digits? Yeah, a supercomputer costing.
Speaker 12: Exactly How could you imagine you're just sitting there just
Speaker 12: like that, You're working on your PC?
Speaker 5: Well, here, why would I need one of these? Probably
Speaker 5: not me?
Speaker 4: But how big is the addressable market for this? What
Speaker 4: is the addressable market?
Speaker 12: There are thirty million software developers. They're probably something along
Speaker 12: the lines of ten million designers around the world. Probably
Speaker 12: another twenty million creative artists. Hard to say exactly how
Speaker 12: many students. I'm going to guess probably a couple one
Speaker 12: hundred million students around the world.
Speaker 6: Everybody is going to have to board it.
Speaker 12: Everybody's going to have to Well, they can afford computers,
Speaker 12: and so here's if they can afford computers and they
Speaker 12: would like to have a companion that helps them do AI,
Speaker 12: this is the way to do it.
Speaker 5: Can I just clarify something?
Speaker 6: Yeah? On it?
Speaker 4: I think you said on stage mac os, Linux and Windows.
Speaker 5: No, No, the location said just Linux, No.
Speaker 12: Whatever computer you use, you're literally enjoying how it's going
Speaker 12: to be used. It's sitting right there and you'll just
Speaker 12: connect to what wirelessly like it's at your personal cloud.
Speaker 4: I promised the audience I'd garify that because very excited.
Speaker 4: Oh yeah, we're running short on time. President Electrump has
Speaker 4: been speaking during the course of conversation. How imperative is
Speaker 4: it that you go to mar A Lago and meet
Speaker 4: with him? If Nvidia is America's leading AI company, and will.
Speaker 6: You I would be delighted to go see him. Have
Speaker 6: you been invited?
Speaker 12: Not yet, but I would be delighted to go see
Speaker 12: him and congratulate him and do everything we can to
Speaker 12: help this administration succeed.
Speaker 4: A lot of what you outlined on stage last night
Speaker 4: in the remophysical AI. You know, I saw x Pong,
Speaker 4: for example, in the autonomous driving context that's happening in China,
Speaker 4: like they are doing a lot on robotics.
Speaker 5: So I'm going to ask you about tariffs.
Speaker 4: You know, it's likely this coming administration will be as
Speaker 4: restrictive on technology export and tarifs will be a function.
Speaker 5: How have you prepared for that? Jensen?
Speaker 12: Whatever the administration ultimately decides, will give them as much
Speaker 12: insight as we can from our perspective, and I'm sure
Speaker 12: that the administration will make the right moves that's the
Speaker 12: best interest of our country.
Speaker 5: Twenty twenty five.
Speaker 4: I kind of started the conversation by saying, a lot
Speaker 4: has changed since we last spoke in the summer. You
Speaker 4: said that the age of general robotics is just around
Speaker 4: the corner. Is twenty twenty five the year of general
Speaker 4: robotics or is that a little premature.
Speaker 6: To your mind?
Speaker 12: The development is going gangbusters, as you can see all
Speaker 12: the different robots that are going to be around here,
Speaker 12: and the enabling technology necessary for general robotics is coming together.
Speaker 12: All the pieces are coming together. The industry still has
Speaker 12: a lot of engineering to do. If you looked long term,
Speaker 12: you know, pick your horizon in ten or twenty years,
Speaker 12: the number of robots that's to be on Earth that's
Speaker 12: going to be measured and probably tens of nine hundreds
Speaker 12: and not potentially billions of robots, and so those days
Speaker 12: are clearly coming. Is it going to happen in the
Speaker 12: next couple of years or the next five years, hard
Speaker 12: to say, but the development of robotics is going to
Speaker 12: be all over the world now and we're seeing startup companies,
Speaker 12: large companies, industrial companies, consumer electronics companies all getting involved
Speaker 12: in the future of robotics. And our offering to the
Speaker 12: industry is a three computer system. And so whether they're
Speaker 12: developing the robot, training the robot, we have DJX systems
Speaker 12: for them and DJX clouds for them. If they're simulating
Speaker 12: the robots, we have omnivers for them, and if they
Speaker 12: want to deploy them.
Speaker 6: When they're ready to deploy the robots, we have.
Speaker 12: Little computers that basically is the computer brain of the
Speaker 12: robot that they can put inside the robot.
Speaker 6: And so we'll work with.
Speaker 12: The industry across the board from the development of the
Speaker 12: robots to the deployment of the robot. And we have
Speaker 12: computer systems for them, algorithms for them, ais for them,
Speaker 12: and we'll partner with the industry and make this feature happen.
Speaker 6: Very very quick.
Speaker 4: Which line of business grows fast? Is this year, data center,
Speaker 4: gaming or other.
Speaker 6: They're all going to grow fast. I think gaming is
Speaker 6: continuing to grow.
Speaker 12: Our automas vehicle business is already on its way to
Speaker 12: be a five billion dollar business this year, and so
Speaker 12: right and sometimes right run rate, and so the autonomous
Speaker 12: vehicle business is just starting to get off the ground,
Speaker 12: and that tells you something about how we address it.
Speaker 12: And the reason for that is we get the benefit
Speaker 12: from the beginning of the development of the AIS all
Speaker 12: the way to the deployment of the cars. Because a
Speaker 12: car company needs two factories, a car factory that builds
Speaker 12: the cars and an AI factory that builds the AI
Speaker 12: sport the cars, and both of these, both of these
Speaker 12: areas we could participate.
Speaker 6: And so I think it's going to be a very
Speaker 6: large business.
Speaker 4: Send I've made you late for your next appointment. Yeah,
Speaker 4: it's crazy, literally grateful a few times. It's good to
Speaker 4: see you as well. Jensen one, the Nvidia CEO.
Speaker 2: Caroline, what a conversation, ed Ludlow live from Las Vegas.
Speaker 2: So good to have you back. We'll let you go
Speaker 2: and return to paternity leave from New York.
Speaker 6: This is blue Bag technology.