WEBVTT - Week in Tech: You, Me & Ghibli

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<v Speaker 1>Welcome to Tech Stuff, a production of iHeart Podcasts and Kaleidoscope.

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<v Speaker 1>I'm mos Vloscian and today Cara Price and I will

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<v Speaker 1>bring you the headlines this week, including the fashion models

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<v Speaker 1>getting Ai twins. Then on Tech Support, we'll talk to

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<v Speaker 1>Garrett da vinc a reporter at the Washington Post about

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<v Speaker 1>all the news in AI from Open Ai, it's huge

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<v Speaker 1>new fundraise, to Xai's acquisition of x formerly Twitter, all

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<v Speaker 1>of that on the Weekend.

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<v Speaker 2>Tech It's Friday, April fourth, Cara Price.

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<v Speaker 3>As Volashan, you're looking like me today.

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<v Speaker 1>Yeah, we are matching.

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<v Speaker 3>We are very matchie matchie. I was at.

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<v Speaker 1>McLaren f one's headquarters as you know, earlier this week

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<v Speaker 1>and I sent you a picture that I was very

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<v Speaker 1>proud of me and Zach Brown, the CEO of McLaren Racing,

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<v Speaker 1>And your only comment was, oh, black trainers.

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<v Speaker 3>Always black six sneakers. You can sponsor us, but yes,

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<v Speaker 3>always black A six sneakers, even if he's wearing a tie.

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<v Speaker 3>But it's, you know, for a tech podcast, it's very

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<v Speaker 3>funny how much we talk about fashion. And it's not

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<v Speaker 3>because I'm a woman.

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<v Speaker 1>I mean, it is also ironic that we both have

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<v Speaker 1>our own uniforms. We're wearing blue blue shirts, dark blue pants, shirt,

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<v Speaker 1>blubby pants, and a cool hat.

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<v Speaker 3>Though I am wearing a cool hat, I'm always wearing well,

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<v Speaker 3>I wouldn't call it a cool hat, but if you

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<v Speaker 3>want to call it a cool hat, it's an appropriated

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<v Speaker 3>Yankees city by hat that is completely illegal and was

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<v Speaker 3>taken off the internet the minute it went up, So

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<v Speaker 3>I'm very proud to be wearing it now.

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<v Speaker 1>The reason we're talking about this is not just because

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<v Speaker 1>we're totally self indulgent, but because the topic of tech

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<v Speaker 1>folks and their uniforms is pretty fascinating. Earlier this year,

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<v Speaker 1>we talked about Mark Zuckerberg, who had this famous, weirdly

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<v Speaker 1>shaped T shirt with the Latin phrase out zuk out

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<v Speaker 1>nihil printed on it, which means all zook ll all

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<v Speaker 1>nothing and is a is a reference to Julius Caesar.

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<v Speaker 1>Of course I can't.

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<v Speaker 3>It's just insane to me. The level of It's not narcissism.

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<v Speaker 3>It's this sense of like an obsession with being cool that,

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<v Speaker 3>while chased, is the antithesis of anything cool and fashionable.

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<v Speaker 1>I thought that one of the genuinely coolest tech swipes

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<v Speaker 1>of the year was when Jay Graber, who's the CEO

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<v Speaker 1>of blue Sky, the kind of left leaning social media platform,

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<v Speaker 1>wore a T shirt at south By Southwest that said

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<v Speaker 1>in Latin, no more Caesars, and it was a real

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<v Speaker 1>sort of shots fired at Zuck, I think, and.

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<v Speaker 3>Also just again in Latin. I mean, these are the

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<v Speaker 3>nerdiest people in human history.

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<v Speaker 1>This was a huge best seller for Blue Sky. I

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<v Speaker 1>saw that almost immediately.

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<v Speaker 3>I bet it was, you know, it's tech Titans, as

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<v Speaker 3>I was saying, just seemed to want to have a

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<v Speaker 3>signature look. And I don't know if part of it

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<v Speaker 3>is pathology, psychological pathology, I mean, certainly minus psychological pathology.

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<v Speaker 3>I like to wear the same thing every day. I

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<v Speaker 3>don't have to think about it. Like our friend Elizabeth Holmes,

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<v Speaker 3>who also rocked the Black Turble.

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<v Speaker 1>She flex hard on the Steve Jobs.

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<v Speaker 3>She flexed and copped. She coughed something from Steve Jobs.

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<v Speaker 3>And I guess it's sort of worked for her because

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<v Speaker 3>we're still talking about it.

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<v Speaker 1>But I think the most sort of talked about tech

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<v Speaker 1>CEO of the moment is none other than Jensen Hwang

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<v Speaker 1>of Invidia.

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<v Speaker 3>The man who made a lot of people a lot

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<v Speaker 3>of money and now is making a lot of people

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<v Speaker 3>a little less money.

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<v Speaker 1>And still still a lot, but little less exactly. He

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<v Speaker 1>has a signature. Look, can you describe it.

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<v Speaker 3>It's sort of a Marlon Brando, sort of on the

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<v Speaker 3>waterfront black leather jacket that is I think Tom Ford.

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<v Speaker 1>I think it is Tom forty, which is like a

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<v Speaker 1>ten thousand dollars.

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<v Speaker 3>That's an extremely expensive jacket.

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<v Speaker 1>But there's a lot of Invidia stands. It turns out,

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<v Speaker 1>and if you build it, they will come to buy

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<v Speaker 1>a fake black leather jacket.

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<v Speaker 3>If you build it, they will come and buy it

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<v Speaker 3>a lot cheaper exactly.

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<v Speaker 1>So our friends at four or for Media reported that

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<v Speaker 1>there are all these websites popping up with knockoff Jensen

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<v Speaker 1>Hwang in video jackets for which have creative titles like

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<v Speaker 1>Jensen wang in Video Jacket totally optimized their CEO.

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<v Speaker 3>People, They're going to find my phone and be like

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<v Speaker 3>that was the last thing that she was looking at.

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<v Speaker 1>But I think I don't sure if you saw it.

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<v Speaker 1>But this week Jensen Hwang went to visit a company

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<v Speaker 1>called x one Robots, and they had one of their

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<v Speaker 1>robots come up to Jensen whanging humanoid robot and present

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<v Speaker 1>him with a new black leather jacket, not a tom

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<v Speaker 1>Ford one. This one was bedazzled with the Nvidia stock

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<v Speaker 1>ticker on the front left pocket and the logo in

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<v Speaker 1>kind of Swarovsky style crystals on.

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<v Speaker 3>The back to imagine if the humanoid robot is also sentient,

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<v Speaker 3>if the robot was like, I don't want to do this,

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<v Speaker 3>like the people programming mean, please give me something better

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<v Speaker 3>to do.

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<v Speaker 1>But there's a more serious story about fashion AI here,

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<v Speaker 1>and it comes from The Guardian. So according to their story,

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<v Speaker 1>the clothing retailer H and M announced that they're going

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<v Speaker 1>to create so called AI twins of thirty models, which

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<v Speaker 1>they're going to use for social media marketing posts.

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<v Speaker 3>The way, I wish I had this for a podcast.

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<v Speaker 3>As much as I enjoy doing it with you, I wish.

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<v Speaker 1>You could just have a I'd have a relic. Would

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<v Speaker 1>you rather use your replica or my replica?

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<v Speaker 3>Well, if we wanted me to be on time, I

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<v Speaker 3>would use your replica. But sorry, keep going, because I

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<v Speaker 3>do love the story.

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<v Speaker 1>No, So these models, the real models, have given their

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<v Speaker 1>permission to H and M to use their likeness with AI.

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<v Speaker 1>You know again, as you said, sounds good, you know,

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<v Speaker 1>why why sharp yourself you can send your digital twin.

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<v Speaker 3>Well that and also I think there's something that's very

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<v Speaker 3>interesting here that reminds me of the Atlantic sort of

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<v Speaker 3>selling its data, which is these are people that, like

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<v Speaker 3>in the film industry, are cannibalizing their own job.

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<v Speaker 1>Well, of course, just like with the Atlantic and Open Ai,

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<v Speaker 1>where open Ai actually compensates the Atlantic for using its archive,

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<v Speaker 1>these models are also being compensated for their image. They

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<v Speaker 1>own the rights of their twins, and their twins can

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<v Speaker 1>work for other brands, not just H and M, and

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<v Speaker 1>they'll get paid. One of the thirty models said, quote,

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<v Speaker 1>she's like me without the jet lag.

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<v Speaker 3>So the other thing is, and it's worth saying, the

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<v Speaker 3>images in the business of fashion right up look amazingly similar.

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<v Speaker 1>Like it's not distinguishable.

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<v Speaker 3>Yeah, it's not like who was that person that we

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<v Speaker 3>used to cover on Sleepwalkers. She was a model Lil Michayla.

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<v Speaker 3>Oh yeah, like littl Michayla looked like AI. I think

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<v Speaker 3>you know, after four years, we have now gotten to

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<v Speaker 3>a place where it's just an AI replica, which is incredible.

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<v Speaker 1>Yeah, and there's no sick finger. As you pointed out,

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<v Speaker 1>it does raise concerns about the future of modeling in

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<v Speaker 1>the fashion industry because although these models who are participation

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<v Speaker 1>in the partnership will get paid every time that digital

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<v Speaker 1>twin is used, you know, just like in the film industry,

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<v Speaker 1>also raises questions about what happens to all the people

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<v Speaker 1>who work on sets. I mean the hair siders, the

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<v Speaker 1>makeup artist, the lighting designers.

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<v Speaker 3>Yeah, you know, I was actually talking to our producer Eliza.

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<v Speaker 3>Shout out to Eliza, I like to keep her in

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<v Speaker 3>the mix. And she actually knows a hairstylist who works

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<v Speaker 3>with a company that's testing out replacing many of their

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<v Speaker 3>e commerce models with AI, and you know, work has

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<v Speaker 3>slowed way down for her.

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<v Speaker 1>So this is happening.

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<v Speaker 3>I mean, think about it. You don't need to be

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<v Speaker 3>doing a blood on a digital avatar.

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<v Speaker 1>Yeah, and I mean even for models themselves, if I

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<v Speaker 1>guess if you're you know, for these thirty who have

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<v Speaker 1>gotten first through the door. It's one thing, but this

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<v Speaker 1>may affect the kind of future job landscape for model

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<v Speaker 1>as well as people work around modeling.

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<v Speaker 3>But this is like a This is Zulander three where

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<v Speaker 3>Derek realizes we're in jeopardy. But in all seriousness, you know,

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<v Speaker 3>what what does it look like for models who are

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<v Speaker 3>no longer in demand? And it might not seem important

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<v Speaker 3>to like a lay person, but I do think it's

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<v Speaker 3>a harbinger of things to come, which is like, if

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<v Speaker 3>you can replace something that is so sort of ubiquitous

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<v Speaker 3>for you know, a century, what does that look like?

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<v Speaker 1>Yeah, I mean wile I find most interesting about these

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<v Speaker 1>like AI digital twins or AI actors or whatever, or

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<v Speaker 1>you know, chatbots of famous people from history is their

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<v Speaker 1>effect is kind of to lock in the very few

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<v Speaker 1>most famous people in the world as the only characters

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<v Speaker 1>who are worth interacting with. I mean, you know, if

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<v Speaker 1>you think about an action movie, why would you not

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<v Speaker 1>make it with Tom Cruise? Or talking about doing a

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<v Speaker 1>fashion shoot, why would you not make it with el McPherson.

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<v Speaker 1>So kind of, I think there's a longer term kind

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<v Speaker 1>of chilling effect on the pipeline and new talent in

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<v Speaker 1>creative industries, which you know, which will pretty interesting, you know,

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<v Speaker 1>and somewhat disturbing. To be fair to H and M,

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<v Speaker 1>they're being very upfront about their use of AI. They're

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<v Speaker 1>going to watermark the images of the AI twins in

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<v Speaker 1>their ads so people will know they're the AI versions,

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<v Speaker 1>And by doing this, the company will also be abiding

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<v Speaker 1>with the EU's AI Act, which is coming into effect

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<v Speaker 1>in twenty twenty six, and it will require all AI

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<v Speaker 1>images to be labeled as AI images, to.

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<v Speaker 3>Which I say, who's looking for that? Like, I you

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<v Speaker 3>know what I mean? Like the role of AI and

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<v Speaker 3>creative industries, which you know, is something I'm obsessed with

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<v Speaker 3>and sort of how to regulate it is something that's

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<v Speaker 3>obviously going to keep coming up, and I'm curious to

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<v Speaker 3>see where it goes next. I wonder to what extent

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<v Speaker 3>the lay person cares that, Like where they're buying a shirt,

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<v Speaker 3>is either modeling that shirt with a fake twin or

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<v Speaker 3>the real person.

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<v Speaker 1>Probably not, Probably not. The next headline comes from the

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<v Speaker 1>stuff of nightmares for anyone who's a frequent traveler, and

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<v Speaker 1>it has to do me, and it has to do

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<v Speaker 1>with an airport being shut down for twenty four hours.

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<v Speaker 3>I heard it was Heathrow.

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<v Speaker 1>It was London heath Throw Airport, where I flew out

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<v Speaker 1>of just this week. It shut down, leading to over

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<v Speaker 1>a thousand council flights after a fire caused a power outage,

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<v Speaker 1>and Bloomberg reported that the outage could be traced back

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<v Speaker 1>to a single point of failure, a burned transformer and

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<v Speaker 1>twenty five thousand liters of transformer cooling oil that was

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<v Speaker 1>a blaze for several hours. It's a fascinating story, and

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<v Speaker 1>Bloomberg had such a great headline, which was the device

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<v Speaker 1>throttling the world's electrified future. But Kara, do you know

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<v Speaker 1>what a transformer is?

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<v Speaker 3>I know what the movie Transformers is. I know it's

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<v Speaker 3>a car that turns into a man.

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<v Speaker 1>So most simply put, a transformer is something that changed

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<v Speaker 1>is voltage. So when you create electricity in a power plant,

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<v Speaker 1>you actually want to increase the voltage as much as

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<v Speaker 1>you can because that allows it to travel far and

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<v Speaker 1>fast with less loss of electricity along the way. So

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<v Speaker 1>use a transformer on the way out of the power plant.

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<v Speaker 1>But then when it gets to your home or the

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<v Speaker 1>local electric grid or whatever it may be, you actually

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<v Speaker 1>want to use a transformer to turn the voltage back

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<v Speaker 1>down because otherwise it blows up your stuff.

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<v Speaker 3>So ostensibly, it's sort of like when I'm staying at

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<v Speaker 3>not the greatest hotel and I turn a blow dryer

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<v Speaker 3>on and all of a sudden, the entire room short

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<v Speaker 3>circuits and all of the electricity goes off because the

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<v Speaker 3>voltage is too high.

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<v Speaker 1>Yeah, exactly mean that is a short circuit where there's

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<v Speaker 1>likely been a problem with the transformer being bypassed or

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<v Speaker 1>not functioning correctly.

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<v Speaker 3>Right. And I think that in a storm or a

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<v Speaker 3>natural disaster, they can sometimes explode and it's very loud.

0:10:51.920 --> 0:10:54.160
<v Speaker 1>Yeah, it sounds like fireworks or a bomb going off.

0:10:54.200 --> 0:10:56.880
<v Speaker 1>And I mean during hurricanes and other kind of natural disasters,

0:10:56.920 --> 0:10:59.160
<v Speaker 1>these things come under a lot of pressure when they

0:10:59.160 --> 0:11:01.800
<v Speaker 1>do go out. Follow And so what happened to Heathrow

0:11:01.840 --> 0:11:04.760
<v Speaker 1>Airport was this fire broke out in a substation which

0:11:04.760 --> 0:11:08.240
<v Speaker 1>houses transformers, and it took the firefighters seven hours to

0:11:08.240 --> 0:11:10.439
<v Speaker 1>get it under control. The airport, in order to come

0:11:10.440 --> 0:11:13.280
<v Speaker 1>back online, was able to accept power from other substations,

0:11:13.760 --> 0:11:15.199
<v Speaker 1>but even the time it took them to do that,

0:11:15.360 --> 0:11:18.800
<v Speaker 1>many many flights were canceled. It was chaos.

0:11:19.840 --> 0:11:22.080
<v Speaker 3>She made it, but it was not a pretty team.

0:11:22.160 --> 0:11:25.200
<v Speaker 1>Yeah him. Back in twenty thirteen, there was actually a

0:11:25.240 --> 0:11:29.400
<v Speaker 1>sniper attack on a substation in California which caused a

0:11:29.440 --> 0:11:32.800
<v Speaker 1>fire that burned seventeen transformers and almost knocked out all

0:11:32.800 --> 0:11:35.480
<v Speaker 1>of the power of Silicon Valley. Now This actually led

0:11:35.520 --> 0:11:38.760
<v Speaker 1>to a lot more security around substations and even stockpiling

0:11:38.800 --> 0:11:43.360
<v Speaker 1>of transformers, which of course sparked another problem, a shortage

0:11:43.360 --> 0:11:46.679
<v Speaker 1>of transformers, transformer shortage and obviously with the supply chain

0:11:46.720 --> 0:11:51.160
<v Speaker 1>issues recently, the lead time for delivering a new large

0:11:51.200 --> 0:11:55.240
<v Speaker 1>transformer is now about three to five years for a

0:11:55.280 --> 0:11:58.520
<v Speaker 1>single transformer, and bear in mind these can be huge. Nonetheless,

0:11:58.559 --> 0:12:00.800
<v Speaker 1>the scale of transformer that was Heathrow, it takes a

0:12:00.840 --> 0:12:03.679
<v Speaker 1>long hundre replace and they've got a much more expensive

0:12:03.760 --> 0:12:05.520
<v Speaker 1>So you know, now we're living in the error of

0:12:05.559 --> 0:12:09.120
<v Speaker 1>EVS and the AI boom powered by data centers and

0:12:09.280 --> 0:12:12.720
<v Speaker 1>transformers are also required to bring renewable power onto the grid,

0:12:13.080 --> 0:12:15.040
<v Speaker 1>and so you know, one of the interesting implications of

0:12:15.080 --> 0:12:18.480
<v Speaker 1>this story, as Imaza, who's on the show, recently told

0:12:18.520 --> 0:12:21.960
<v Speaker 1>me that actually the US's struggles to onboard new power

0:12:21.960 --> 0:12:24.880
<v Speaker 1>to the grid maybe the reason why the US ultimately

0:12:24.880 --> 0:12:26.280
<v Speaker 1>falls behind China in AI.

0:12:26.840 --> 0:12:29.840
<v Speaker 3>So it's ironic actually that the increase in transformer prices

0:12:29.880 --> 0:12:33.160
<v Speaker 3>could be further increased by President Trump's on again, off

0:12:33.200 --> 0:12:36.400
<v Speaker 3>again relationship with imposing tariffs in Canada and Mexico, which

0:12:36.440 --> 0:12:39.520
<v Speaker 3>is where we import a lot of our large transformers from.

0:12:39.520 --> 0:12:41.320
<v Speaker 1>And that's why I love this Bloomberg story because it's

0:12:41.320 --> 0:12:43.680
<v Speaker 1>fun think about all the sexy stuff like new chips

0:12:43.679 --> 0:12:46.640
<v Speaker 1>and data center construction, you know, but there's still this

0:12:46.679 --> 0:12:49.920
<v Speaker 1>one hundred year old technology that hasn't changed and that

0:12:50.040 --> 0:12:53.960
<v Speaker 1>has to be imported and which is absolutely critical for infrastructure,

0:12:54.040 --> 0:12:55.760
<v Speaker 1>digital and otherwise, you know.

0:12:55.720 --> 0:12:58.840
<v Speaker 3>Speaking of the AI boom and things that use a lot,

0:12:58.880 --> 0:13:01.000
<v Speaker 3>a lot, a lot of energy. This next story that

0:13:01.000 --> 0:13:02.920
<v Speaker 3>I want to tell you is for those people who've

0:13:02.920 --> 0:13:06.679
<v Speaker 3>been sitting here thinking about lms and not really understanding

0:13:06.679 --> 0:13:11.040
<v Speaker 3>how they work. I have news for you. Much like

0:13:11.080 --> 0:13:17.040
<v Speaker 3>Trump's decisions on tariffs, nobody knows how they work. And Anthropic,

0:13:17.120 --> 0:13:19.680
<v Speaker 3>which is the same company that makes the AI model Claud,

0:13:20.000 --> 0:13:22.840
<v Speaker 3>has been trying to figure out how the hell these things.

0:13:22.840 --> 0:13:25.040
<v Speaker 1>This is to solve the so called black books.

0:13:24.720 --> 0:13:27.040
<v Speaker 3>The black box problem. So Anthropic, which is the same

0:13:27.080 --> 0:13:29.679
<v Speaker 3>company that makes the A model Claud, has been trying

0:13:29.720 --> 0:13:32.880
<v Speaker 3>to figure out sort of what's under the hood, and

0:13:32.960 --> 0:13:36.679
<v Speaker 3>they recently released two reports on how llms do things

0:13:36.720 --> 0:13:42.800
<v Speaker 3>like complete sentences, solve math problems, and suppress hallucinations. And

0:13:42.840 --> 0:13:45.840
<v Speaker 3>they use a technique called circuit tracing which let them

0:13:45.920 --> 0:13:49.520
<v Speaker 3>track an LM's decision making process for ten different tasks

0:13:49.800 --> 0:13:52.680
<v Speaker 3>by working back from the solution to the query.

0:13:53.040 --> 0:13:56.280
<v Speaker 1>Huh okay, that makes sense. But I just think more broadly,

0:13:56.480 --> 0:13:59.360
<v Speaker 1>as more and more decisions are taken for us by

0:13:59.679 --> 0:14:03.640
<v Speaker 1>AI or outcomes kind of determined by AI, it's kind

0:14:03.640 --> 0:14:06.600
<v Speaker 1>of remarkable that this huge elephant is still in the

0:14:06.640 --> 0:14:09.560
<v Speaker 1>corner of the room, which is we can't understand how

0:14:09.559 --> 0:14:10.520
<v Speaker 1>they make their decisions.

0:14:10.640 --> 0:14:12.560
<v Speaker 3>But it also makes you think of like, I don't

0:14:12.600 --> 0:14:14.840
<v Speaker 3>really know. I mean, I know how a car works,

0:14:15.000 --> 0:14:19.640
<v Speaker 3>but like the I'm not an engineer, and yet increasingly,

0:14:19.880 --> 0:14:22.600
<v Speaker 3>I mean, you know, since whenever the nineteen twenties, people

0:14:22.640 --> 0:14:24.480
<v Speaker 3>have used cars more and more to get around, and

0:14:24.480 --> 0:14:26.760
<v Speaker 3>we're just kind of like, well, this thing's gonna work

0:14:26.800 --> 0:14:29.160
<v Speaker 3>until it blows up, you know. That's why I feel whatever.

0:14:29.400 --> 0:14:33.680
<v Speaker 3>But it's important to note that lllm's, like Claude, which

0:14:33.760 --> 0:14:37.040
<v Speaker 3>was the focus of this study, are trained, which I

0:14:37.080 --> 0:14:40.400
<v Speaker 3>thought this was really interesting. They're trained, not programmed on

0:14:40.440 --> 0:14:43.520
<v Speaker 3>a bunch of data. They create their own rules based

0:14:43.560 --> 0:14:46.600
<v Speaker 3>on the data they ingest. But up until now we

0:14:46.760 --> 0:14:49.560
<v Speaker 3>haven't been able to see into the models to know

0:14:49.600 --> 0:14:52.320
<v Speaker 3>what those rules actually are. Let alone how the models

0:14:52.400 --> 0:14:53.080
<v Speaker 3>generate them.

0:14:53.240 --> 0:14:55.800
<v Speaker 1>Yeah, and I think what the work the anthropic is

0:14:55.840 --> 0:14:59.880
<v Speaker 1>doing is all about basically understanding decision making. So then

0:15:00.120 --> 0:15:02.040
<v Speaker 1>not yet at the stage of being able to understand

0:15:02.040 --> 0:15:04.480
<v Speaker 1>how the models generate their own rules, But I think

0:15:04.520 --> 0:15:07.720
<v Speaker 1>this story is all about how it's starting to become

0:15:08.520 --> 0:15:12.480
<v Speaker 1>easier or possible to basically backfigure out how a model

0:15:12.480 --> 0:15:13.240
<v Speaker 1>has made a decision.

0:15:13.400 --> 0:15:18.520
<v Speaker 3>Yes, and it's not that simple. I think the researchers

0:15:18.560 --> 0:15:21.880
<v Speaker 3>in this particular case were inspired by brain scan techniques

0:15:22.240 --> 0:15:25.360
<v Speaker 3>that are used in neuroscience. They found that llms, which

0:15:25.400 --> 0:15:28.520
<v Speaker 3>again I'm so interested in how we anthropomorphize lms, But

0:15:28.840 --> 0:15:33.080
<v Speaker 3>they found that llms store different constellations of knowledge in

0:15:33.120 --> 0:15:35.400
<v Speaker 3>different parts of their model. So, for example, the concept

0:15:35.440 --> 0:15:39.800
<v Speaker 3>of smallness or the idea of a rabbit. Anthropic was

0:15:39.840 --> 0:15:43.560
<v Speaker 3>actually able to identify and then turn off certain parts

0:15:43.600 --> 0:15:47.120
<v Speaker 3>of the model. So like the idea rabbit and tune

0:15:47.120 --> 0:15:49.160
<v Speaker 3>it down so that it couldn't be part of a

0:15:49.240 --> 0:15:50.160
<v Speaker 3>queer result.

0:15:50.360 --> 0:15:52.760
<v Speaker 1>And for exac like what eats carrots? It would be like.

0:15:54.080 --> 0:15:58.080
<v Speaker 3>People right, a dog right exactly, And so the same

0:15:58.200 --> 0:16:01.480
<v Speaker 3>query would have a different answer if the rabbit part

0:16:01.520 --> 0:16:03.280
<v Speaker 3>of the model was dealt up or down, which you.

0:16:03.280 --> 0:16:06.720
<v Speaker 1>Say said by contrast, you might you might say, you know,

0:16:07.000 --> 0:16:09.000
<v Speaker 1>what's a mammal? It always asks rabbit if you dial

0:16:09.000 --> 0:16:10.240
<v Speaker 1>it up, and if you if you dial it down,

0:16:10.240 --> 0:16:11.120
<v Speaker 1>it would never own a rabbit.

0:16:11.280 --> 0:16:11.640
<v Speaker 4>Correct.

0:16:11.720 --> 0:16:13.680
<v Speaker 3>So I mean, and it's similar. I mean it's similar

0:16:13.680 --> 0:16:15.960
<v Speaker 3>in human beings, which is like I don't drink anymore,

0:16:15.960 --> 0:16:17.560
<v Speaker 3>so I go to a bar and I'm like water.

0:16:19.520 --> 0:16:20.680
<v Speaker 3>It's a similar kind of thing.

0:16:21.120 --> 0:16:23.080
<v Speaker 1>I mean that that actually clarifies for me, and I

0:16:23.240 --> 0:16:25.520
<v Speaker 1>kind of We've done a bunch of coverage of AI

0:16:25.600 --> 0:16:28.000
<v Speaker 1>and spoken to Jeffrey Hinton and others, but like that

0:16:28.120 --> 0:16:31.640
<v Speaker 1>idea of a neural network is to me really clarified

0:16:31.640 --> 0:16:32.280
<v Speaker 1>by this study.

0:16:32.400 --> 0:16:34.080
<v Speaker 3>Well, and how could it not be. It's something that

0:16:34.080 --> 0:16:36.000
<v Speaker 3>we've created, you know what I mean, it's going to

0:16:36.040 --> 0:16:40.400
<v Speaker 3>reflect a sort of human centric way of working. I

0:16:40.440 --> 0:16:44.480
<v Speaker 3>think this story actually came from the MIT Technology Review

0:16:44.480 --> 0:16:47.800
<v Speaker 3>with the headline anthropic can now track the bizarre inner

0:16:47.840 --> 0:16:51.280
<v Speaker 3>workings of a large language model, to which I said, Now,

0:16:52.480 --> 0:16:54.280
<v Speaker 3>what really blew my mind, though, is the way that

0:16:54.360 --> 0:16:57.280
<v Speaker 3>this thing solves math problems, because it's not the way

0:16:57.280 --> 0:16:58.200
<v Speaker 3>that humans do math.

0:16:58.320 --> 0:16:59.400
<v Speaker 1>Okay, tell me more.

0:16:59.360 --> 0:17:04.400
<v Speaker 3>So, research asked it to solve the equation thirty six

0:17:04.480 --> 0:17:07.640
<v Speaker 3>plus fifty nine, and while Claude came up with there,

0:17:07.760 --> 0:17:13.880
<v Speaker 3>what's the correct answer? Well, well, Claude took a very

0:17:13.920 --> 0:17:17.440
<v Speaker 3>circuitous route to get that answer. Anthropic found that Claude

0:17:17.520 --> 0:17:22.280
<v Speaker 3>used multiple computation paths in parallel to get its final answer,

0:17:22.359 --> 0:17:25.280
<v Speaker 3>unlike you, who just used your brain. So one path

0:17:25.359 --> 0:17:28.720
<v Speaker 3>added a bunch of numbers. I love this. This is

0:17:28.760 --> 0:17:31.600
<v Speaker 3>like nerd alert close to thirty six and fifty nine

0:17:31.720 --> 0:17:36.000
<v Speaker 3>to approximate the total like thirty five and sixty, while

0:17:36.160 --> 0:17:40.920
<v Speaker 3>another path focused on determining the last digit of the sum,

0:17:41.040 --> 0:17:43.879
<v Speaker 3>so it actually added the last two digits of thirty

0:17:43.880 --> 0:17:47.040
<v Speaker 3>six and fifty nine, six and nine to know that

0:17:47.119 --> 0:17:50.200
<v Speaker 3>the answer had to be a multiple of five. So

0:17:50.240 --> 0:17:52.480
<v Speaker 3>Claude used these two paths to come up with the

0:17:52.520 --> 0:17:54.800
<v Speaker 3>correct answer, which is as you said.

0:17:54.800 --> 0:17:58.320
<v Speaker 1>Ninety five. You know, I find particularly fascinating about this,

0:17:58.760 --> 0:18:01.320
<v Speaker 1>so I always struggled to be with math. My dad,

0:18:01.359 --> 0:18:04.679
<v Speaker 1>on the other hand, is a crazy math murder. He

0:18:04.800 --> 0:18:07.880
<v Speaker 1>was like the under thirteen chess champion of Britain, etc.

0:18:08.840 --> 0:18:10.560
<v Speaker 1>You know, he said to me about the most important

0:18:10.640 --> 0:18:14.200
<v Speaker 1>thing about how to do math well, is how approximate

0:18:14.240 --> 0:18:16.480
<v Speaker 1>the answer before you work it out. He basically told

0:18:16.560 --> 0:18:20.000
<v Speaker 1>me to do exactly what this model does. Basically break

0:18:20.000 --> 0:18:22.320
<v Speaker 1>it down to much simpler calculation, and then when you

0:18:22.359 --> 0:18:24.560
<v Speaker 1>do the actual work, you will know whether or not

0:18:24.600 --> 0:18:25.359
<v Speaker 1>you're in the range.

0:18:25.440 --> 0:18:25.640
<v Speaker 4>Right.

0:18:25.760 --> 0:18:28.919
<v Speaker 3>Well, Claude does math like your dad. When asked by

0:18:28.960 --> 0:18:31.639
<v Speaker 3>a user how it got the answer ninety five, it

0:18:31.680 --> 0:18:34.840
<v Speaker 3>claims to do it by the book, for example, simple addition,

0:18:35.000 --> 0:18:38.760
<v Speaker 3>carrying the one and one of the explanations anthropic positive.

0:18:38.440 --> 0:18:41.200
<v Speaker 1>Positive for the fact that, when asked how it got

0:18:41.200 --> 0:18:44.280
<v Speaker 1>to the answer, did it shared a response that was not,

0:18:44.320 --> 0:18:45.840
<v Speaker 1>in fact, how it got to the answer.

0:18:45.760 --> 0:18:49.560
<v Speaker 3>Right because Claude's written answer and I quote may reflect

0:18:49.560 --> 0:18:52.920
<v Speaker 3>the fact that the model learns to explain math by

0:18:53.000 --> 0:18:56.800
<v Speaker 3>simulating explanations written by people. So when asked to do

0:18:56.880 --> 0:19:00.120
<v Speaker 3>math without being taught how to do it, it may

0:19:00.119 --> 0:19:04.600
<v Speaker 3>develop its own internal strategies to do so. Remember it's

0:19:04.640 --> 0:19:05.720
<v Speaker 3>trade not programmed.

0:19:12.280 --> 0:19:14.359
<v Speaker 1>We're going to take a quick break, but stick around

0:19:14.520 --> 0:19:17.439
<v Speaker 1>and we'll be back with this week's tech support, all

0:19:17.480 --> 0:19:34.240
<v Speaker 1>about AI competition among tech giants. For our next segment,

0:19:34.240 --> 0:19:37.719
<v Speaker 1>we're going to be talking about all things AI. Surprise, Surprise,

0:19:37.760 --> 0:19:41.280
<v Speaker 1>on tech stuff Rise tell surprise, But in all seriousness,

0:19:41.400 --> 0:19:43.960
<v Speaker 1>there's just so much happening in AI all the time.

0:19:44.040 --> 0:19:45.760
<v Speaker 1>I find it even though it's our job, but it's

0:19:45.800 --> 0:19:46.439
<v Speaker 1>hard to keep up with.

0:19:46.880 --> 0:19:50.120
<v Speaker 3>We know. I literally work on a podcast about technology

0:19:50.160 --> 0:19:52.320
<v Speaker 3>and half the time other people are telling me what's

0:19:52.359 --> 0:19:54.240
<v Speaker 3>going on in the world of technology. Because I've come

0:19:54.640 --> 0:19:57.640
<v Speaker 3>I've become kind of like a sieve for technology news

0:19:57.680 --> 0:19:58.440
<v Speaker 3>from my friends.

0:19:58.720 --> 0:20:01.280
<v Speaker 1>Absolutely, So this week we're going to talk to somebody

0:20:01.359 --> 0:20:04.719
<v Speaker 1>who can help navigate a whirlwind of headlines. And you've

0:20:04.720 --> 0:20:08.760
<v Speaker 1>got the big open Ai fundraise, You've got elon integrating

0:20:09.119 --> 0:20:12.640
<v Speaker 1>x into Xai, and then you've got the struggles at

0:20:12.680 --> 0:20:13.360
<v Speaker 1>Apple with.

0:20:13.400 --> 0:20:16.560
<v Speaker 2>Their AI products or lack thereof.

0:20:17.000 --> 0:20:20.040
<v Speaker 1>Here to help us decode the current AI landscape is

0:20:20.119 --> 0:20:23.800
<v Speaker 1>Garrett Devinc who's a technology reporter for The Washington Post. Garrett,

0:20:23.840 --> 0:20:24.679
<v Speaker 1>Welcome to Tech Stuff.

0:20:24.800 --> 0:20:25.520
<v Speaker 4>Happy to be here.

0:20:25.680 --> 0:20:28.560
<v Speaker 1>Let's start with a big one. The volume of news

0:20:28.680 --> 0:20:32.480
<v Speaker 1>around AI today feels quite overwhelming. I mean, also, it

0:20:32.520 --> 0:20:37.800
<v Speaker 1>comes from so many different companies Open Ai, Google, Xai, Microsoft, Amazon, Apple,

0:20:38.119 --> 0:20:40.480
<v Speaker 1>The list goes on and on. How do you keep

0:20:40.600 --> 0:20:42.840
<v Speaker 1>up with all of this and also figure out how

0:20:42.840 --> 0:20:44.280
<v Speaker 1>to sort the signal from the noise.

0:20:44.560 --> 0:20:46.879
<v Speaker 5>Yeah, I mean, I think this is kind of a

0:20:46.920 --> 0:20:50.080
<v Speaker 5>key question. I'm sure a lot of people are asking themselves,

0:20:50.080 --> 0:20:52.520
<v Speaker 5>and I think first thing is, just take a deep breath,

0:20:52.600 --> 0:20:55.639
<v Speaker 5>calm down. AI is not coming for your job. AI

0:20:55.760 --> 0:20:58.560
<v Speaker 5>is not going to take over the world tomorrow, even

0:20:58.640 --> 0:21:02.040
<v Speaker 5>if really smart people or powerful people or rich companies

0:21:02.040 --> 0:21:05.919
<v Speaker 5>are saying that. Essentially, what we're seeing here is the

0:21:05.960 --> 0:21:09.320
<v Speaker 5>tech industry is this huge conglomeration of a bunch of

0:21:09.359 --> 0:21:12.440
<v Speaker 5>powerful people and billions and billions of dollars that are

0:21:12.480 --> 0:21:14.679
<v Speaker 5>always looking for the next thing, always looking for the

0:21:14.680 --> 0:21:17.640
<v Speaker 5>next way to make money. And they look back at

0:21:17.720 --> 0:21:22.440
<v Speaker 5>tech trends over the years, the Internet, cloud computing, moving

0:21:22.520 --> 0:21:25.399
<v Speaker 5>to mobile phones, and the tech industry has sort of

0:21:25.440 --> 0:21:30.360
<v Speaker 5>collectively decided that AI is the next one of those stages, right,

0:21:30.400 --> 0:21:32.760
<v Speaker 5>And so when the mobile phone came out, a bunch

0:21:32.760 --> 0:21:34.120
<v Speaker 5>of new people were able to make money.

0:21:34.200 --> 0:21:34.360
<v Speaker 1>Right.

0:21:34.400 --> 0:21:36.320
<v Speaker 4>We didn't have Uber, we didn't have.

0:21:36.200 --> 0:21:39.040
<v Speaker 5>Those kind of mobile first door Dash, those kinds of

0:21:39.080 --> 0:21:42.120
<v Speaker 5>companies before the mobile phone came out, and people made

0:21:42.280 --> 0:21:45.439
<v Speaker 5>huge amounts of money during that tech transition. And so

0:21:45.840 --> 0:21:49.320
<v Speaker 5>what's happening now is the tech industry believes and is

0:21:49.400 --> 0:21:52.439
<v Speaker 5>convincing themselves and trying to convince all of us that

0:21:52.560 --> 0:21:55.240
<v Speaker 5>AI is that next step, and so they're pouring money

0:21:55.240 --> 0:21:58.200
<v Speaker 5>into it, they're pouring marketing dollars into it, but at

0:21:58.200 --> 0:22:01.440
<v Speaker 5>the same time, there's still trying to build the plane

0:22:01.560 --> 0:22:04.480
<v Speaker 5>as it's taking off. And so that's why you might

0:22:04.520 --> 0:22:06.680
<v Speaker 5>see a lot of products that maybe.

0:22:06.440 --> 0:22:07.440
<v Speaker 4>Don't work very well.

0:22:07.560 --> 0:22:09.879
<v Speaker 5>You don't know really how they fit into your life,

0:22:10.200 --> 0:22:11.840
<v Speaker 5>and you're not sure whether you should be paying for

0:22:11.880 --> 0:22:13.600
<v Speaker 5>them yet. And so I think the first thing is

0:22:13.640 --> 0:22:15.639
<v Speaker 5>to say, you know, don't worry. You're not missing the

0:22:15.640 --> 0:22:18.040
<v Speaker 5>boat if you're not using a million AI apps right now.

0:22:18.119 --> 0:22:20.520
<v Speaker 5>And so, yes, this is happening. There's a lot of

0:22:20.720 --> 0:22:23.440
<v Speaker 5>hype and interest here, but it's not as if AI

0:22:23.640 --> 0:22:26.600
<v Speaker 5>is just sort of gonna change everything immediately.

0:22:26.880 --> 0:22:28.800
<v Speaker 1>And one of the things that Karen and I sometimes

0:22:28.800 --> 0:22:31.159
<v Speaker 1>talk about is like, is it speeding up or is

0:22:31.200 --> 0:22:33.880
<v Speaker 1>it slowing down? Because like November December, all the headlines

0:22:33.920 --> 0:22:36.880
<v Speaker 1>were slowing down CHACKGBT five is not coming, and now

0:22:36.880 --> 0:22:39.160
<v Speaker 1>it feels like we're in a big speeding up moment. Again,

0:22:39.760 --> 0:22:41.679
<v Speaker 1>is it even a relevant question? And where do you

0:22:41.680 --> 0:22:42.199
<v Speaker 1>fall on it?

0:22:42.359 --> 0:22:42.560
<v Speaker 4>Yeah?

0:22:42.560 --> 0:22:43.879
<v Speaker 5>I mean I think it's a great question, and I

0:22:43.960 --> 0:22:46.720
<v Speaker 5>think that analysis is correct, right. I mean, everyone is

0:22:46.760 --> 0:22:49.240
<v Speaker 5>trying to either build something up or tear it down.

0:22:49.280 --> 0:22:50.640
<v Speaker 4>That's how these things work.

0:22:50.720 --> 0:22:53.920
<v Speaker 5>And so the reason we had this huge boost in

0:22:54.000 --> 0:22:57.720
<v Speaker 5>interest was because chat gipt came out. It was definitely

0:22:57.840 --> 0:23:00.639
<v Speaker 5>better than what most people had you used before and

0:23:00.640 --> 0:23:02.560
<v Speaker 5>being able to experience directly, and they were able to

0:23:02.560 --> 0:23:05.240
<v Speaker 5>put it in a format that regular people could actually

0:23:05.359 --> 0:23:08.840
<v Speaker 5>understand and have a conversation with it. And so that's

0:23:08.840 --> 0:23:11.960
<v Speaker 5>sort of what fired the starting gun. And then they said, okay,

0:23:12.000 --> 0:23:14.320
<v Speaker 5>how do we make that better? And then the techniques

0:23:14.320 --> 0:23:17.520
<v Speaker 5>they were using, which was essentially to use way more data,

0:23:17.840 --> 0:23:20.560
<v Speaker 5>to just shove more data into these AI models and

0:23:20.720 --> 0:23:23.399
<v Speaker 5>hope that they get smarter. That had been working up

0:23:23.400 --> 0:23:25.840
<v Speaker 5>into a certain point, and then they kind of ran

0:23:25.920 --> 0:23:28.520
<v Speaker 5>out of data and that method slowed down, and so

0:23:28.640 --> 0:23:32.720
<v Speaker 5>they've now pivoted to using different techniques where they're actually

0:23:32.720 --> 0:23:35.640
<v Speaker 5>spending a lot more time training the model to.

0:23:35.600 --> 0:23:36.399
<v Speaker 4>Do different things.

0:23:36.400 --> 0:23:38.800
<v Speaker 5>They're sort of doing more coding so that it can

0:23:39.080 --> 0:23:42.120
<v Speaker 5>be a bit more efficient and strategic, and now they're

0:23:42.119 --> 0:23:44.959
<v Speaker 5>seeing a boost in capability.

0:23:44.280 --> 0:23:45.320
<v Speaker 4>From that technique.

0:23:45.320 --> 0:23:49.080
<v Speaker 5>And if people remember the Chinese AI model called deep Seek.

0:23:49.440 --> 0:23:51.440
<v Speaker 5>They really had a huge breakthrough where they were able

0:23:51.480 --> 0:23:54.000
<v Speaker 5>to use a little bit less data and less computing

0:23:54.080 --> 0:23:56.440
<v Speaker 5>power to come up with a model that was really

0:23:56.520 --> 0:23:59.439
<v Speaker 5>quite capable. And so now everyone is saying, oh, we're

0:23:59.480 --> 0:24:02.520
<v Speaker 5>speeding up again because we found new ways of increasing

0:24:02.560 --> 0:24:04.200
<v Speaker 5>the capabilities.

0:24:03.960 --> 0:24:07.680
<v Speaker 3>Which is I mean, ultimately a more long term effective

0:24:07.720 --> 0:24:10.040
<v Speaker 3>way to get these things to work than having to

0:24:10.119 --> 0:24:14.520
<v Speaker 3>rely on humongous data sets that might not be replenishable.

0:24:14.600 --> 0:24:16.080
<v Speaker 4>Yeah, yeah, absolutely.

0:24:16.080 --> 0:24:18.320
<v Speaker 5>And I mean the other aspect here is that AI

0:24:18.440 --> 0:24:21.800
<v Speaker 5>is very compute intensive, which is essentially just a way

0:24:21.840 --> 0:24:23.840
<v Speaker 5>of saying they need a lot of computers and a

0:24:23.840 --> 0:24:26.919
<v Speaker 5>lot of computer chips in order to do AI in

0:24:26.960 --> 0:24:29.919
<v Speaker 5>the first place. Takes a lot of energy, and so

0:24:30.000 --> 0:24:33.159
<v Speaker 5>there's a lot of potential environmental concerns. Even here in

0:24:33.200 --> 0:24:35.840
<v Speaker 5>the United States, coal power plants that were slated to

0:24:35.880 --> 0:24:38.879
<v Speaker 5>be shut down have actually been ramped back up in

0:24:39.080 --> 0:24:41.880
<v Speaker 5>order to serve all those AI data centers. So there

0:24:41.960 --> 0:24:44.919
<v Speaker 5>is a lot of interest and pressure in making AI

0:24:45.040 --> 0:24:48.240
<v Speaker 5>more efficient so that it's cheaper and more environmentally friendly.

0:24:48.960 --> 0:24:51.280
<v Speaker 3>One of the biggest names in the industry is open AI,

0:24:51.720 --> 0:24:55.919
<v Speaker 3>and for anyone who is living under a rock and

0:24:56.040 --> 0:24:58.679
<v Speaker 3>wasn't on social media this week. Why is everybody talking

0:24:58.720 --> 0:25:00.960
<v Speaker 3>so much about Studio Ghibli.

0:25:01.720 --> 0:25:06.400
<v Speaker 5>Yeah, so, open Ai they released a new image generator, right.

0:25:06.480 --> 0:25:08.400
<v Speaker 4>So one of the things that people have been able.

0:25:08.200 --> 0:25:10.240
<v Speaker 5>To use AI for over the last couple of years

0:25:10.320 --> 0:25:12.520
<v Speaker 5>is you make a short description and it spits out

0:25:12.560 --> 0:25:14.760
<v Speaker 5>an image, and you know, it's been getting better and

0:25:14.800 --> 0:25:18.440
<v Speaker 5>better over the months, and essentially they released a big

0:25:18.520 --> 0:25:23.440
<v Speaker 5>update to THEIRS and people realize that they could use photos,

0:25:23.560 --> 0:25:27.119
<v Speaker 5>upload photos and get the model to recreate that image

0:25:27.119 --> 0:25:31.119
<v Speaker 5>and sort of the same design styles from iconic animators

0:25:31.119 --> 0:25:33.840
<v Speaker 5>like you mentioned Studio Ghibli or even like the movie

0:25:33.920 --> 0:25:36.520
<v Speaker 5>Wallace and Grommet or the Muppets, and.

0:25:37.359 --> 0:25:40.200
<v Speaker 3>I like the Lego Family, the Lego Family or exactly.

0:25:41.080 --> 0:25:43.600
<v Speaker 5>It was this moment where the technology allowed people to

0:25:43.640 --> 0:25:45.560
<v Speaker 5>apply their creativity.

0:25:45.320 --> 0:25:47.639
<v Speaker 4>In a new way, and that's why it went viral.

0:25:48.359 --> 0:25:52.040
<v Speaker 5>And open Ai I think they did hope that this

0:25:52.080 --> 0:25:55.720
<v Speaker 5>would happen. They themselves were using some of these Studio

0:25:55.760 --> 0:26:00.639
<v Speaker 5>Ghibili examples early on. But also they can't really predict

0:26:00.720 --> 0:26:02.520
<v Speaker 5>or control how this is going to go, and some

0:26:02.600 --> 0:26:04.760
<v Speaker 5>of their releases have just kind of fallen flat. Everyone's

0:26:04.800 --> 0:26:06.600
<v Speaker 5>been like boring we don't care, but.

0:26:06.640 --> 0:26:07.720
<v Speaker 4>This one a lot of people.

0:26:07.840 --> 0:26:09.800
<v Speaker 5>They found it really fun, they found it really interesting,

0:26:09.800 --> 0:26:12.320
<v Speaker 5>and it definitely went viral, and it actually brought a

0:26:12.359 --> 0:26:14.000
<v Speaker 5>lot more people who.

0:26:13.920 --> 0:26:16.240
<v Speaker 4>Hadn't been using chat GPT before.

0:26:16.680 --> 0:26:19.000
<v Speaker 5>But now, of course this raises all sorts of questions

0:26:19.000 --> 0:26:22.800
<v Speaker 5>about art and copyright and big problems like that.

0:26:23.600 --> 0:26:29.640
<v Speaker 3>What's interesting, though, is while they're trying to grow very quickly,

0:26:30.080 --> 0:26:32.800
<v Speaker 3>we have someone like Sam Altman come out and say,

0:26:33.080 --> 0:26:35.320
<v Speaker 3>please slow down with this image generation.

0:26:35.640 --> 0:26:38.679
<v Speaker 1>He said that the GPUs are being melted by the demand, right.

0:26:38.840 --> 0:26:41.840
<v Speaker 5>Yeah, I mean it's possible some GPUs actually did melt

0:26:41.840 --> 0:26:43.360
<v Speaker 5>a little bit. I mean, you know, when you're using

0:26:43.400 --> 0:26:45.920
<v Speaker 5>your laptop, you've got two hundred Chrome tabs open and

0:26:45.960 --> 0:26:48.480
<v Speaker 5>you're trying to listen to YouTube, it gets hot, right,

0:26:48.520 --> 0:26:50.360
<v Speaker 5>and so that's exactly what happens.

0:26:50.560 --> 0:26:52.080
<v Speaker 3>My phone does get quite hot.

0:26:52.280 --> 0:26:56.280
<v Speaker 5>Yeah, you know that same thing happens with AI, right.

0:26:56.280 --> 0:26:57.920
<v Speaker 5>I mean, so this is still a very physical thing.

0:26:57.960 --> 0:26:59.879
<v Speaker 5>Every single time everyone in the world says, hey, make

0:27:00.119 --> 0:27:02.440
<v Speaker 5>an image of this. Hey write me a resume for this,

0:27:02.520 --> 0:27:06.080
<v Speaker 5>Hey answer my test questions for me. That needs to

0:27:06.119 --> 0:27:08.960
<v Speaker 5>go to a data center, It needs to be computed

0:27:09.160 --> 0:27:12.720
<v Speaker 5>on these computer chips on GPUs, which is the technical

0:27:12.800 --> 0:27:15.840
<v Speaker 5>term for the computer chips, and that heats them up

0:27:15.920 --> 0:27:18.040
<v Speaker 5>and so I don't know if they were actually melting,

0:27:18.040 --> 0:27:20.560
<v Speaker 5>But essentially what sam Altman was referring to there is

0:27:20.600 --> 0:27:22.840
<v Speaker 5>just that so many people wanted to use this that

0:27:22.920 --> 0:27:27.199
<v Speaker 5>it was becoming very expensive for open ai to run it.

0:27:27.200 --> 0:27:29.040
<v Speaker 5>And this kind of gets to a central problem for

0:27:29.080 --> 0:27:31.639
<v Speaker 5>them because the more people use it, the more it

0:27:31.760 --> 0:27:34.920
<v Speaker 5>costs them in computer chip costs, and so they want

0:27:34.960 --> 0:27:37.200
<v Speaker 5>people to use it, but at the same time they

0:27:37.240 --> 0:27:39.199
<v Speaker 5>need to figure out, you know, how can we convince

0:27:39.240 --> 0:27:42.280
<v Speaker 5>people force people to pay for these things so that

0:27:42.320 --> 0:27:44.320
<v Speaker 5>we can actually grow as a business. And this is

0:27:44.400 --> 0:27:47.960
<v Speaker 5>a huge question mark around open ai and other AI companies.

0:27:48.359 --> 0:27:51.480
<v Speaker 1>As fun as it is making a studio ghibli portrait yourself,

0:27:51.520 --> 0:27:54.280
<v Speaker 1>it's hard to measure it being a huge, huge business

0:27:54.320 --> 0:27:56.520
<v Speaker 1>driver of people buying tokens to do that.

0:27:56.520 --> 0:27:58.479
<v Speaker 5>That's sort of a question for open Ai, right, I mean,

0:27:58.520 --> 0:28:01.520
<v Speaker 5>they've been able to have these viral moments. Chat GPT

0:28:01.920 --> 0:28:04.800
<v Speaker 5>itself was a viral moment, and I do think people

0:28:05.000 --> 0:28:07.880
<v Speaker 5>are using these technologies. I mean, in some ways open

0:28:07.880 --> 0:28:10.800
<v Speaker 5>ai chatch GPT is one of the fastest growing, if

0:28:10.800 --> 0:28:16.040
<v Speaker 5>not the fastest growing consumer Internet products ever. But we're

0:28:16.080 --> 0:28:18.120
<v Speaker 5>not quite at that point yet where I think regular

0:28:18.200 --> 0:28:20.600
<v Speaker 5>people are saying, oh, like, this is so important to

0:28:20.680 --> 0:28:24.320
<v Speaker 5>my life, I need it so badly to write emails

0:28:24.560 --> 0:28:28.240
<v Speaker 5>or to have fun like generating these images that I'm

0:28:28.240 --> 0:28:31.159
<v Speaker 5>willing to pay two hundred dollars a month for it.

0:28:31.200 --> 0:28:33.640
<v Speaker 5>I mean, I do think that the company is still

0:28:33.640 --> 0:28:36.200
<v Speaker 5>in this world where they're trying to figure out how

0:28:36.200 --> 0:28:38.760
<v Speaker 5>do we convince people that they need this so badly

0:28:39.160 --> 0:28:41.400
<v Speaker 5>that they're willing to spend hundreds of dollars a year

0:28:41.440 --> 0:28:41.760
<v Speaker 5>on it.

0:28:42.320 --> 0:28:45.600
<v Speaker 1>So you may be somewhat skeptical, Garrett, but the market

0:28:45.640 --> 0:28:47.800
<v Speaker 1>is not, or at least soft Bank is not. You

0:28:47.840 --> 0:28:48.600
<v Speaker 1>talk a bit about that.

0:28:49.000 --> 0:28:53.640
<v Speaker 5>Yeah, I mean open Ai raised forty billion dollars and

0:28:54.000 --> 0:28:57.520
<v Speaker 5>at a three hundred billion dollar valuation, and I mean it's.

0:28:57.360 --> 0:29:00.640
<v Speaker 1>The largest ever private financing of a US company that.

0:29:01.200 --> 0:29:03.760
<v Speaker 3>A company that's not a private company a little while ago.

0:29:03.920 --> 0:29:07.440
<v Speaker 5>Yeah, And the only private company that is actually worth

0:29:07.520 --> 0:29:10.880
<v Speaker 5>more than three hundred billion dollars is SpaceX. So that's

0:29:10.960 --> 0:29:14.720
<v Speaker 5>Elon Musk's Space company. But they build big physical rockets

0:29:14.760 --> 0:29:17.800
<v Speaker 5>that cost hundreds of millions of dollars, So that company's

0:29:17.800 --> 0:29:20.240
<v Speaker 5>worth three hundred fifty billion. Opening Eye is now, according

0:29:20.240 --> 0:29:23.320
<v Speaker 5>to its investors, worth three hundred billion dollars, right, And

0:29:23.400 --> 0:29:26.200
<v Speaker 5>so I think this mostly goes to the to that

0:29:26.360 --> 0:29:29.720
<v Speaker 5>question about how expensive it is to do AI, right,

0:29:29.760 --> 0:29:33.480
<v Speaker 5>and so they need that money in order to buy

0:29:33.560 --> 0:29:37.240
<v Speaker 5>data centers, buy computer chips to keep helping people make

0:29:37.320 --> 0:29:39.600
<v Speaker 5>these these studio ghibli images and all the other things

0:29:39.640 --> 0:29:41.200
<v Speaker 5>that Opening Eye is working for.

0:29:41.240 --> 0:29:42.120
<v Speaker 4>And so so it's.

0:29:41.960 --> 0:29:44.920
<v Speaker 1>Just the uber model where you basically subsidized users and

0:29:45.000 --> 0:29:47.040
<v Speaker 1>then once you get them hooked, you start to charge them,

0:29:47.080 --> 0:29:48.000
<v Speaker 1>but at huge scale.

0:29:48.160 --> 0:29:48.360
<v Speaker 4>Yeah.

0:29:48.360 --> 0:29:50.680
<v Speaker 5>I mean that's a playbook that tech companies have used

0:29:50.680 --> 0:29:53.480
<v Speaker 5>for years now, right, and get people hooked on something

0:29:53.520 --> 0:29:56.720
<v Speaker 5>that is fun, cheap, easy, free work into their lives

0:29:56.720 --> 0:29:59.240
<v Speaker 5>and so that they feel like they needed every single day,

0:29:59.560 --> 0:30:02.040
<v Speaker 5>and then start to increase the costs. I mean Google

0:30:02.120 --> 0:30:04.840
<v Speaker 5>has done this. I'm paying for my Gmail storage. I

0:30:04.880 --> 0:30:05.800
<v Speaker 5>don't know if you guys are.

0:30:05.840 --> 0:30:11.080
<v Speaker 3>I mean, yes, it's a question of when does something

0:30:11.120 --> 0:30:14.200
<v Speaker 3>go from the gimmick phase to the business phase. I think,

0:30:14.200 --> 0:30:16.160
<v Speaker 3>at least in terms of chat GBT.

0:30:16.440 --> 0:30:18.800
<v Speaker 5>Yeah, And I think the other thing to point out

0:30:18.840 --> 0:30:21.960
<v Speaker 5>here is that open ai does have a business where

0:30:22.000 --> 0:30:25.320
<v Speaker 5>they sell access to their AI to other businesses, right,

0:30:25.360 --> 0:30:28.239
<v Speaker 5>and so there's the consumer question, which is exactly what

0:30:28.240 --> 0:30:30.960
<v Speaker 5>we're talking about. Then they are actually selling to businesses

0:30:30.960 --> 0:30:34.120
<v Speaker 5>who want to put AI technology into their own apps

0:30:34.200 --> 0:30:38.000
<v Speaker 5>and into their own technology, and that's also a big

0:30:38.040 --> 0:30:39.960
<v Speaker 5>part of what open ai is trying to do here.

0:30:40.440 --> 0:30:43.320
<v Speaker 5>But that's also, you know, a big question mark because

0:30:43.320 --> 0:30:47.440
<v Speaker 5>we have these open source AI models as well. Deep Seek,

0:30:47.520 --> 0:30:50.280
<v Speaker 5>the Chinese one we mentioned earlier is an example of that.

0:30:50.680 --> 0:30:53.360
<v Speaker 5>Facebook also provides these tools where they just essentially put

0:30:53.400 --> 0:30:56.080
<v Speaker 5>the AI out there for free for other businesses to

0:30:56.120 --> 0:30:58.560
<v Speaker 5>take and use in their own ways. And so open

0:30:58.600 --> 0:31:02.960
<v Speaker 5>ai is a very strong business. They have incredible technology,

0:31:02.960 --> 0:31:04.680
<v Speaker 5>they have some of the smartest people in the world

0:31:04.760 --> 0:31:07.840
<v Speaker 5>on AI, and they have huge funding and backing.

0:31:07.520 --> 0:31:08.360
<v Speaker 4>From their investors.

0:31:08.360 --> 0:31:11.280
<v Speaker 5>But at the same time, that doesn't guarantee that they're

0:31:11.320 --> 0:31:13.720
<v Speaker 5>going to continue to grow or even be around in

0:31:13.800 --> 0:31:18.840
<v Speaker 5>five years.

0:31:21.080 --> 0:31:23.280
<v Speaker 1>When we come back, we'll hear about how other big

0:31:23.280 --> 0:31:26.600
<v Speaker 1>tech companies like Amazon and Apple are fairing in the

0:31:26.680 --> 0:31:44.680
<v Speaker 1>scramble to develop AI products. Yeah, we want to ask

0:31:44.680 --> 0:31:46.520
<v Speaker 1>you a little bit about what Amazon and Apple are

0:31:46.520 --> 0:31:48.640
<v Speaker 1>doing in the realm of AI. But just before we

0:31:48.720 --> 0:31:51.720
<v Speaker 1>get there, there's another huge deal this week, also with

0:31:51.840 --> 0:31:53.840
<v Speaker 1>a potentially dubious price tag.

0:31:54.280 --> 0:31:57.920
<v Speaker 5>Yes, so I think you're referring to Elon Musk's merger

0:31:57.960 --> 0:31:59.960
<v Speaker 5>of two of his companies little confusing.

0:32:00.080 --> 0:32:02.000
<v Speaker 4>They're both kind of called XX.

0:32:02.360 --> 0:32:04.040
<v Speaker 1>I couldn't even get through the read at the beginning

0:32:04.080 --> 0:32:06.560
<v Speaker 1>of the shows. That's a tongue twist. Yeah, exactly.

0:32:06.640 --> 0:32:10.880
<v Speaker 4>I mean I think that sort of speaks to Elon Musk.

0:32:11.040 --> 0:32:13.720
<v Speaker 5>He has many companies at this point, and he's been

0:32:13.760 --> 0:32:16.600
<v Speaker 5>known to sort of move assets around a little bit.

0:32:16.680 --> 0:32:20.200
<v Speaker 5>And so when it comes to x which is formally Twitter,

0:32:20.280 --> 0:32:22.320
<v Speaker 5>so that's the social media platform that he bought a

0:32:22.320 --> 0:32:25.040
<v Speaker 5>couple of years ago for forty four billion dollars, he

0:32:25.360 --> 0:32:30.000
<v Speaker 5>has now sold that company to his AI company, which

0:32:30.040 --> 0:32:34.200
<v Speaker 5>is called Xai. And sort of formally, the social media

0:32:34.200 --> 0:32:37.240
<v Speaker 5>company is now owned by the AI company. And so

0:32:37.440 --> 0:32:39.600
<v Speaker 5>I say formally, because these companies had kind of been

0:32:39.600 --> 0:32:42.720
<v Speaker 5>working together in a lot of ways. User data from

0:32:42.840 --> 0:32:45.920
<v Speaker 5>the social media company was already being used to train

0:32:46.400 --> 0:32:50.120
<v Speaker 5>the AI on the AI company. The AI company's main product,

0:32:50.120 --> 0:32:53.160
<v Speaker 5>which is called Grock, which is a chat GPT competitor,

0:32:53.720 --> 0:32:57.520
<v Speaker 5>was available through the social media company, and so in

0:32:57.560 --> 0:33:00.520
<v Speaker 5>a lot of ways, these companies were already the same thing.

0:33:00.640 --> 0:33:02.920
<v Speaker 5>And what he did here is he said, look, the

0:33:03.000 --> 0:33:04.920
<v Speaker 5>AI company is able to raise a lot of money

0:33:04.920 --> 0:33:08.120
<v Speaker 5>because everyone loves AI, everyone wants to boost AI. So

0:33:08.200 --> 0:33:10.240
<v Speaker 5>I'm going to use that money that the AI company

0:33:10.280 --> 0:33:12.840
<v Speaker 5>is able to raise to bail out and kind of

0:33:13.120 --> 0:33:15.480
<v Speaker 5>give me more time when it comes to the social

0:33:15.520 --> 0:33:19.840
<v Speaker 5>media company, which is very influential and maybe Elon Musk's

0:33:19.880 --> 0:33:22.960
<v Speaker 5>most important company right now because of the political influence

0:33:23.000 --> 0:33:26.200
<v Speaker 5>it gives him. But from a business perspective, the social

0:33:26.200 --> 0:33:29.080
<v Speaker 5>media company has struggled and sort of been, you know,

0:33:29.240 --> 0:33:31.840
<v Speaker 5>going through the wilderness a little bit since Elon Musk

0:33:31.960 --> 0:33:34.360
<v Speaker 5>bought it because most of its users left, a whole

0:33:34.400 --> 0:33:36.720
<v Speaker 5>bunch of new users came in, advertisers left.

0:33:36.760 --> 0:33:37.920
<v Speaker 4>Maybe the advertisers are going.

0:33:37.880 --> 0:33:39.880
<v Speaker 5>To come back, and so it's a way for Elon

0:33:39.960 --> 0:33:42.840
<v Speaker 5>Musk to sort of use the AI hype to kind

0:33:42.840 --> 0:33:46.360
<v Speaker 5>of help shore up the finances of his social media company.

0:33:47.280 --> 0:33:50.840
<v Speaker 3>You know another major tech company that isn't mentioned as

0:33:50.920 --> 0:33:53.240
<v Speaker 3>much in the AI raise, and that is Amazon. They

0:33:53.280 --> 0:33:58.880
<v Speaker 3>recently unveiled Amazon Nova Act. They're AI agent. So what

0:33:58.920 --> 0:34:01.280
<v Speaker 3>does the lay person need to know about this.

0:34:01.600 --> 0:34:04.200
<v Speaker 4>So okay, a couple of things. I think AI agent

0:34:04.480 --> 0:34:05.240
<v Speaker 4>is a term.

0:34:05.080 --> 0:34:07.920
<v Speaker 5>That people are probably already hearing, and I guarantee you

0:34:07.960 --> 0:34:09.680
<v Speaker 5>they're going to be hearing more about it in the

0:34:09.719 --> 0:34:12.600
<v Speaker 5>coming months and years. An AI agent all that is

0:34:12.600 --> 0:34:15.080
<v Speaker 5>is just you know, you can say, okay, well, if

0:34:15.120 --> 0:34:17.120
<v Speaker 5>I can have a conversation with chat GPT, I can

0:34:17.160 --> 0:34:19.600
<v Speaker 5>ask it things. Can I ask it to then go

0:34:20.080 --> 0:34:22.360
<v Speaker 5>and read the internet for me? Can I ask it

0:34:22.440 --> 0:34:24.319
<v Speaker 5>to go do things on the internet for me?

0:34:24.440 --> 0:34:24.600
<v Speaker 1>Right?

0:34:24.680 --> 0:34:28.400
<v Speaker 5>If chat GPT is able to read an e commerce website,

0:34:28.719 --> 0:34:31.759
<v Speaker 5>can't I just tell chat GPT, hey, go buy me

0:34:31.920 --> 0:34:34.600
<v Speaker 5>the cheapest sofa for my new furniture that you can

0:34:34.680 --> 0:34:38.240
<v Speaker 5>find from my new apartment that's green and seats three people.

0:34:38.320 --> 0:34:38.480
<v Speaker 4>Right.

0:34:38.560 --> 0:34:41.800
<v Speaker 5>And so that's what an AI agent is, is essentially using

0:34:41.840 --> 0:34:45.360
<v Speaker 5>AI to go and help people to do things on

0:34:45.480 --> 0:34:48.080
<v Speaker 5>the internet for them. And so this is something a

0:34:48.120 --> 0:34:50.279
<v Speaker 5>lot of AI companies are talking about. Obviously, there's a

0:34:50.280 --> 0:34:52.719
<v Speaker 5>lot of problems. The technology is not quite there. The

0:34:52.800 --> 0:34:55.560
<v Speaker 5>last thing you want is to say to your AI agent,

0:34:55.640 --> 0:34:57.960
<v Speaker 5>go buy me a sofa for under one thousand dollars,

0:34:58.400 --> 0:35:01.040
<v Speaker 5>and then suddenly eight sofas that cost ten thousand dollars

0:35:01.040 --> 0:35:03.000
<v Speaker 5>each show up at your door a week later, right,

0:35:03.040 --> 0:35:04.960
<v Speaker 5>I mean we need to be really careous. Is that?

0:35:04.960 --> 0:35:06.439
<v Speaker 3>What is that the phase we're in right now?

0:35:06.760 --> 0:35:09.239
<v Speaker 5>I mean a colleague of mine ran an experiment where

0:35:09.239 --> 0:35:11.319
<v Speaker 5>he asked some of these AI agents to go and

0:35:11.400 --> 0:35:13.440
<v Speaker 5>find him the cheapest eggs.

0:35:13.440 --> 0:35:15.720
<v Speaker 4>This was sort of at the height of the egg panic,

0:35:15.760 --> 0:35:16.400
<v Speaker 4>and eggs.

0:35:16.200 --> 0:35:20.160
<v Speaker 5>Were selling for twenty dollars a dozen and the agent

0:35:20.239 --> 0:35:23.480
<v Speaker 5>actually went and bought I think it was like thirty

0:35:23.520 --> 0:35:26.880
<v Speaker 5>dollars eggs and had them delivered to his home before

0:35:26.960 --> 0:35:29.640
<v Speaker 5>he even had the chance to say, like, yes, make

0:35:29.680 --> 0:35:30.240
<v Speaker 5>that purchase.

0:35:30.280 --> 0:35:32.560
<v Speaker 4>And so it's definitely in the experimental phase.

0:35:32.880 --> 0:35:36.720
<v Speaker 5>But Amazon they sort of see that this is maybe

0:35:36.760 --> 0:35:38.400
<v Speaker 5>the next frontier of the technology.

0:35:38.520 --> 0:35:41.200
<v Speaker 1>Is that what the key interest is to basically do

0:35:41.280 --> 0:35:42.239
<v Speaker 1>your shopping for you?

0:35:42.560 --> 0:35:44.520
<v Speaker 4>I mean, I think that would make sense.

0:35:44.560 --> 0:35:47.719
<v Speaker 5>I mean, they are the shopping company, and we all

0:35:47.760 --> 0:35:49.480
<v Speaker 5>know Amazon Alexa.

0:35:49.239 --> 0:35:50.520
<v Speaker 4>Was an early version of this.

0:35:50.600 --> 0:35:53.160
<v Speaker 5>I mean you could ask Amazon Alexa to buy things

0:35:53.160 --> 0:35:55.680
<v Speaker 5>for you on Amazon. You could ask it obviously to

0:35:55.840 --> 0:35:58.359
<v Speaker 5>remind you about the weather, and people never really use

0:35:58.400 --> 0:36:00.799
<v Speaker 5>it for more than that. And so people have been

0:36:00.840 --> 0:36:03.920
<v Speaker 5>saying why was Amazon not ahead of this trend? Why

0:36:04.120 --> 0:36:07.440
<v Speaker 5>is Amazon Alexa not smarter? Why can chat GPT do

0:36:07.640 --> 0:36:10.959
<v Speaker 5>things that Amazon Alexa can't. So Amazon has been under

0:36:11.000 --> 0:36:13.799
<v Speaker 5>a huge amount of pressure from its investors, from its

0:36:13.800 --> 0:36:16.400
<v Speaker 5>own employees, from other people in the tech industry to

0:36:16.560 --> 0:36:18.960
<v Speaker 5>show that they are riding this AI wave just like

0:36:19.000 --> 0:36:21.880
<v Speaker 5>these other companies. And I think this Nova Act product,

0:36:21.880 --> 0:36:24.280
<v Speaker 5>which is very new, it's still in the experimental phase,

0:36:24.760 --> 0:36:26.640
<v Speaker 5>is a sign that they're trying to do that.

0:36:26.880 --> 0:36:29.680
<v Speaker 1>All of this, of course brings us to Siri. I mean,

0:36:29.719 --> 0:36:32.799
<v Speaker 1>the irony being that Amazon Alexa and Apple Siri were

0:36:32.840 --> 0:36:35.800
<v Speaker 1>kind of ahead of the curve in terms of voice

0:36:35.880 --> 0:36:41.200
<v Speaker 1>driven assistance, essentially agentic type features, and now Amazon feels

0:36:41.200 --> 0:36:43.920
<v Speaker 1>like it's behind the curve a little bit, and certainly

0:36:44.000 --> 0:36:46.919
<v Speaker 1>Apple does too when it comes to AI. What's going

0:36:46.960 --> 0:36:47.400
<v Speaker 1>on there?

0:36:47.680 --> 0:36:50.400
<v Speaker 5>Yeah, I mean, I think there's this dynamic that you're

0:36:50.840 --> 0:36:53.879
<v Speaker 5>putting your finger on where these companies are really really

0:36:53.880 --> 0:36:56.280
<v Speaker 5>invested in their own way of doing things and then

0:36:56.600 --> 0:36:58.920
<v Speaker 5>there's a new way that kind of comes out of

0:36:58.960 --> 0:37:01.880
<v Speaker 5>left field and to adjust right. This is the classic

0:37:02.360 --> 0:37:05.520
<v Speaker 5>innovator's dilemma. And so I would say for both companies.

0:37:05.560 --> 0:37:10.080
<v Speaker 5>Don't count them out. Amazon, Apple. They are both massive companies.

0:37:10.120 --> 0:37:13.319
<v Speaker 5>They are bigger than pretty much anything we've seen in

0:37:13.440 --> 0:37:18.360
<v Speaker 5>the history of business. They are in people's lives every minute,

0:37:18.400 --> 0:37:20.279
<v Speaker 5>every day, and so I think, first of all, we

0:37:20.320 --> 0:37:22.520
<v Speaker 5>should be careful not to just write them off and say, oh,

0:37:22.520 --> 0:37:25.919
<v Speaker 5>they're behind, therefore they will fail. But I do think

0:37:25.960 --> 0:37:28.919
<v Speaker 5>that this is really five alarm fire moment for them.

0:37:28.960 --> 0:37:31.319
<v Speaker 1>So you, I mean, they've been having internal sort of

0:37:31.360 --> 0:37:33.759
<v Speaker 1>ol hands meetings. What's the kind of internal drummer at

0:37:33.760 --> 0:37:34.279
<v Speaker 1>apput on this?

0:37:34.719 --> 0:37:38.280
<v Speaker 5>They are saying, Wow, we need to get on board

0:37:38.320 --> 0:37:40.439
<v Speaker 5>with this. And Google had the same thing when chat

0:37:40.480 --> 0:37:41.640
<v Speaker 5>GPT eventually came out.

0:37:41.680 --> 0:37:43.720
<v Speaker 4>Right, Google is the AI company.

0:37:43.760 --> 0:37:46.360
<v Speaker 5>A lot of this technology we're talking about was actually

0:37:46.360 --> 0:37:48.719
<v Speaker 5>developed by Google and then just shared with the world

0:37:48.760 --> 0:37:50.719
<v Speaker 5>because they didn't quite know what to do with it.

0:37:51.239 --> 0:37:54.400
<v Speaker 5>And so for Apple, people have said, okay, well Series

0:37:54.440 --> 0:37:56.560
<v Speaker 5>been around, are you going to make series smarter? This

0:37:56.600 --> 0:38:00.279
<v Speaker 5>seems like an obvious application. They stayed quiet for about

0:38:00.280 --> 0:38:03.040
<v Speaker 5>a year after chat GPT came out, and then they said.

0:38:03.040 --> 0:38:05.000
<v Speaker 4>Yes, we're doing it. We're going all in.

0:38:05.160 --> 0:38:08.360
<v Speaker 5>We're an AI company like everyone else. And now they've

0:38:08.360 --> 0:38:11.200
<v Speaker 5>delayed some of those releases, right, they've said, oh, actually,

0:38:11.320 --> 0:38:13.600
<v Speaker 5>we might need a bit more time to get it

0:38:13.640 --> 0:38:15.680
<v Speaker 5>to the level where we want it. And we can

0:38:15.719 --> 0:38:19.680
<v Speaker 5>see some of Apple's AI experiments have already failed pretty spectacularly.

0:38:19.719 --> 0:38:22.680
<v Speaker 5>They had a bot that summarized some of the messages

0:38:22.719 --> 0:38:24.879
<v Speaker 5>that were coming into your phone. Well I remember that, yeah,

0:38:25.239 --> 0:38:28.040
<v Speaker 5>last year Apple Intelligence. And what they would do is

0:38:28.080 --> 0:38:30.160
<v Speaker 5>they would see news alerts and they and said, oh,

0:38:30.239 --> 0:38:32.200
<v Speaker 5>let me be helpful. Let me summarize the three or

0:38:32.200 --> 0:38:35.520
<v Speaker 5>four news alerts you have. And the summaries were incorrect, right,

0:38:35.560 --> 0:38:38.759
<v Speaker 5>And so that is upsetting as journalists. It's upsetting as

0:38:38.760 --> 0:38:42.120
<v Speaker 5>a user because you want accurate information and Apple is

0:38:42.280 --> 0:38:43.240
<v Speaker 5>muddling the waters.

0:38:43.280 --> 0:38:44.879
<v Speaker 4>And so they had to pull that back.

0:38:44.920 --> 0:38:47.239
<v Speaker 5>And people are starting to seriously ask the question, is

0:38:47.280 --> 0:38:50.360
<v Speaker 5>this the moment where a company like Apple kind of

0:38:50.400 --> 0:38:53.840
<v Speaker 5>falls from grace and loses its steam, loses its power.

0:38:54.560 --> 0:38:57.200
<v Speaker 1>But here's the thing. Fifty percent of Apple's revenues come

0:38:57.239 --> 0:39:01.680
<v Speaker 1>from setting the iPhone. And I can't imagine why do

0:39:01.719 --> 0:39:03.120
<v Speaker 1>they need to be a monket eater in AI? Why

0:39:03.120 --> 0:39:04.840
<v Speaker 1>can't they license other people they eye products?

0:39:04.920 --> 0:39:07.239
<v Speaker 5>Yeah, I mean Apple doesn't really like doing that. They

0:39:07.560 --> 0:39:10.360
<v Speaker 5>like to do everything on their own. They now build

0:39:10.360 --> 0:39:13.160
<v Speaker 5>their own computer chips, they build their own software.

0:39:13.160 --> 0:39:15.560
<v Speaker 4>And the whole point of Apple was.

0:39:15.520 --> 0:39:18.040
<v Speaker 5>That it wasn't a PC, right, they had their own

0:39:18.160 --> 0:39:21.520
<v Speaker 5>operating system. And so that is a huge part of

0:39:21.640 --> 0:39:25.520
<v Speaker 5>Apple's value where they say, come into our walld garden.

0:39:25.600 --> 0:39:27.719
<v Speaker 5>You're going to pay a lot of money, but you're

0:39:27.800 --> 0:39:30.200
<v Speaker 5>going to be more secure, it's going to be cool,

0:39:30.400 --> 0:39:33.040
<v Speaker 5>it's going to be more intuitive. We're doing things our way,

0:39:33.120 --> 0:39:36.280
<v Speaker 5>and so that is their whole pitch to the consumer.

0:39:36.600 --> 0:39:38.879
<v Speaker 5>And if they suddenly have to start saying, come into

0:39:38.880 --> 0:39:42.200
<v Speaker 5>our world garden and use Google's AI, come into our

0:39:42.200 --> 0:39:43.520
<v Speaker 5>world garden and use opening.

0:39:43.760 --> 0:39:45.640
<v Speaker 3>Which I do now by the way, Yeah, I mean

0:39:45.680 --> 0:39:48.319
<v Speaker 3>I use my Apple products to use chatchibt. But it's

0:39:48.360 --> 0:39:50.960
<v Speaker 3>also like can you get everything from one guy? I

0:39:50.960 --> 0:39:51.319
<v Speaker 3>don't know?

0:39:51.600 --> 0:39:53.479
<v Speaker 5>Yeah, And I mean this is another big question because

0:39:53.480 --> 0:39:55.680
<v Speaker 5>that's been the struggle over the last ten years between

0:39:55.680 --> 0:39:58.040
<v Speaker 5>these giant tech companies to sort of box each other

0:39:58.080 --> 0:40:02.160
<v Speaker 5>out and try to corral people within their own ecosystems.

0:40:02.600 --> 0:40:05.880
<v Speaker 5>And maybe AI is the technology that kind of blows

0:40:05.920 --> 0:40:06.680
<v Speaker 5>that up in a way.

0:40:07.800 --> 0:40:09.120
<v Speaker 1>Gary, what a great place to end.

0:40:09.280 --> 0:40:11.160
<v Speaker 4>Thank you so much for thank you so much, of course,

0:40:11.160 --> 0:40:11.880
<v Speaker 4>it is my pleasure.

0:40:17.320 --> 0:40:20.400
<v Speaker 2>That's it for this week for tech Stuff, I'm mos Vloshin.

0:40:20.000 --> 0:40:23.360
<v Speaker 3>And I'm Kara Price. This episode was produced by Eliza Dennis,

0:40:23.440 --> 0:40:27.440
<v Speaker 3>Victoria Dominguez, and Adriana Tapia. It was executive produced by

0:40:27.480 --> 0:40:31.440
<v Speaker 3>me Oz Valashan and Kate Osbourne for Kaleidoscope and Katrina

0:40:31.480 --> 0:40:35.160
<v Speaker 3>Norvel for iHeart Podcasts. Jess Crinchich is the engineer and

0:40:35.280 --> 0:40:38.759
<v Speaker 3>Jack Insley mix the episode. Kyle Murdoch wrote our theme song.

0:40:39.239 --> 0:40:42.600
<v Speaker 1>Join us next Wednesday for tech Stuff The Story when

0:40:42.640 --> 0:40:46.360
<v Speaker 1>we'll share an in depth conversation with Reid Hoffmann, legendary

0:40:46.360 --> 0:40:50.040
<v Speaker 1>founder of LinkedIn, venture capitalist at gray Lock, and author

0:40:50.080 --> 0:40:53.200
<v Speaker 1>of the new book Super Agency. What could possibly go

0:40:53.320 --> 0:40:54.800
<v Speaker 1>right with our AI future?

0:40:55.120 --> 0:40:57.600
<v Speaker 3>Please rate, review, and reach out to us at tech

0:40:57.600 --> 0:41:00.719
<v Speaker 3>Stuff podcast at gmail dot com. We want to hear

0:41:00.719 --> 0:41:01.640
<v Speaker 3>from you.