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Speaker 1: Bloomberg Audio Studios, podcasts, radio news in.

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Speaker 2: Viniar and Cisco announcing plans this week to extend their partnership,

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Speaker 2: creating their most advanced AI architecture package that will provide

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Speaker 2: secure enterprise AI networking. I'm very place to say the

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Speaker 2: Cisco Chief Product Officer and Executive vice president g Two

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Speaker 2: Pateau joined us now for more, Gezo, It's good to

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Speaker 2: see you, sir.

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Speaker 3: It's great to see you.

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Speaker 2: Thank you for having me, Thank you for being here.

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Speaker 2: I wanted to do this for a while with you,

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Speaker 2: we all have. Let's just take a giant step back

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Speaker 2: before we get into this partnership. You know what I

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Speaker 2: worry about. I worry that AI will do to services

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Speaker 2: what manufacturing was done to by globalization. What is the

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Speaker 2: risk of that happening over the next several decades.

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Speaker 4: Look at any replatforming that happens. You'll always have some

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Speaker 4: level of displacement of jobs, and we need to make

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Speaker 4: sure that we make it as painless for society to

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Speaker 4: make that transition happen. But I worry less about AI

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Speaker 4: taking my job. I worry more about someone who uses

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Speaker 4: AI really well taking my job.

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Speaker 3: So if you take a step back.

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Speaker 4: It's actually really exciting to see what the possibilities are

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Speaker 4: with AI because what people, even despite all the hype,

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Speaker 4: what people grossly underestimate is the original insights that AI

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Speaker 4: is going to be able to go derive that don't

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Speaker 4: exist in the human corpus of knowledge, that allow us

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Speaker 4: to solve problems that we have not been able to

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Speaker 4: solve until now. And so, you know, whether it be

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Speaker 4: in healthcare or financial services, or transportation or whatever industry

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Speaker 4: you pick, you will actually have a reimagination of the

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Speaker 4: ways in which we can solve problems that have not

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Speaker 4: existed up until now. And that's exciting, frankly, because you

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Speaker 4: have this, you know, population of eight billion people that

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Speaker 4: will feel like it's got the throughput capacity of eighty billion.

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Speaker 2: Are we seeing that happen right now? Is that a

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Speaker 2: dream for the future or something that's being realized in

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Speaker 2: this very moment.

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Speaker 3: You're going to start seeing it happen.

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Speaker 4: In twenty twenty five, for example, there will be you know,

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Speaker 4: a meaningful amount of code that will actually start getting

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Speaker 4: autonomously written, and so you'll actually start to see so

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Speaker 4: many more The capacity of engineers will actually ten x

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Speaker 4: during the course of twenty twenty five.

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Speaker 2: It's exciting to see this, as you know, is the

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Speaker 2: societal issue that i'd be slightly concerned about. So there

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Speaker 2: are a bunch of graduates who are graduating over the

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Speaker 2: next couple of years or so, and they went to

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Speaker 2: learn to code because they would tell this is what

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Speaker 2: you need to go and learn to do. And they're

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Speaker 2: coming out into a workforce where maybe they feel like

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Speaker 2: they're no longer needed. What's the advice you'd give to

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Speaker 2: them as they graduate.

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Speaker 4: Here's the thing that I feel like people you might

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Speaker 4: overestimate the capabilities on that front, because AI is still

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Speaker 4: not going to have the human instinct and the judgment

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Speaker 4: that you're going to need to have. You're still going

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Speaker 4: to need to do oversight. There's a human in the loop.

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Speaker 4: But now that developer is going to have a companion

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Speaker 4: that can actually do the stuff that they didn't really

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Speaker 4: care to do or they weren't as good as at doing.

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Speaker 4: So this is a net positive in my mind, and

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Speaker 4: you're going to see a lot of progress in society

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Speaker 4: because of it, rather than a regression that happens.

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Speaker 1: Not to build on negativity, because I actually am a

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Speaker 1: very big believer on the positivity and I'm excited for it.

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Speaker 1: But there is this question of who's going to lose

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Speaker 1: their jobs in the meantime, and John alluded to this,

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Speaker 1: this idea that it's more of a white collar issue

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Speaker 1: than a blue collar issue. And I'm thinking of things

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Speaker 1: that we've heard about, like at banks where there have

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Speaker 1: been fat fingers that cause transfers or whatever else, and

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Speaker 1: that some of those efforts are being shifted to AI.

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Speaker 1: How significant do you think that transition is going to be.

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Speaker 4: You will always have some degree of jobs that will

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Speaker 4: get displaced, and then there'll be new jobs that actually

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Speaker 4: get created. And the thing that we have to keep

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Speaker 4: in mind is it's there's a lot of jobs that

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Speaker 4: right now people don't have enough labor to get done

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Speaker 4: that we are either we just don't have the resources

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Speaker 4: to do that actually don't.

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Speaker 3: Happen right now.

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Speaker 4: And so what AI will allow us to do is

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Speaker 4: not just go do things that humans don't do as well,

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Speaker 4: not just do things that replace humans, but actually do

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Speaker 4: things that humans don't have the time to get done.

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Speaker 1: Which industries do you think are being the most aggressive

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Speaker 1: about adapting to different AI tools and bringing them into

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Speaker 1: their entry.

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Speaker 3: I think it's loss subord you're seeing it right now.

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Speaker 4: In fact, i'd say, you know, two years ago, when

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Speaker 4: chat GPT came out, almost every company in every industry,

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Speaker 4: I'm noticing what's ourr AI strategy going to look like.

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Speaker 3: And we've now had a couple of years to go

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Speaker 3: bake that.

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Speaker 4: And in twenty twenty five you're going to see this

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Speaker 4: really exciting move from just chat pots to agents where

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Speaker 4: you'll actually have workflows get automated in every industry, in

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Speaker 4: every sector, in every segment of the market, and every geography.

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Speaker 3: So I feel like, you know.

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Speaker 4: There's only going to be two kinds of companies in

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Speaker 4: the world, those that are going to be really dextrous

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Speaker 4: for the use of AI and others that are going

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Speaker 4: to really struggle for elevance.

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Speaker 2: Before we talk about facilitating that for corporate America, G two,

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Speaker 2: can we talk about how things are changing inside Cisco?

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Speaker 2: What's different about how Cisco's operating with these advancements that

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Speaker 2: you're talking about.

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Speaker 4: We are lucky in the sense that we've actually got

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Speaker 4: a front row seat on what's happening, and you know,

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Speaker 4: everything from the way in which we're building out infrastructure

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Speaker 4: to the way in which we are getting our security

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Speaker 4: and safety parameters in the right way, and then making

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Speaker 4: sure that the workflows get automated. So you know, how

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Speaker 4: are we using AI and engineering? How are we using

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Speaker 4: AI our contact center so that when customers call because

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Speaker 4: they've got a problem, we're using AI to make sure

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Speaker 4: that we can help them solve the problems faster. What

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Speaker 4: are we doing in legal? What are we doing in marketing?

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Speaker 4: What are we doing in sales? Each one of these

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Speaker 4: areas is getting rethought and reimagined. It's actually exciting to see.

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Speaker 2: The whole world's got to do this. Yes, every company's

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Speaker 2: got to do the same thing.

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Speaker 3: Every company every introduces.

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Speaker 2: This partnership with in Vidio, talks to us about that

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Speaker 2: and what's going to change over the next several years

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Speaker 2: with that partnership in mind.

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Speaker 3: So we're excited.

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Speaker 4: Jensen, the CEO of n Vidia, put it best. He said,

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Speaker 4: Cisco and Nvideo are putting together the blueprint for securing AI,

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Speaker 4: and John, I go talk to a lot of customers

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Speaker 4: all the time, and when you go, when you go,

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Speaker 4: ask customers how enthusiastic they are about AI. Virtually every

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Speaker 4: CEO we had a study we recently did ninety seven

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Speaker 4: percent of the CEO said they were excited about AI,

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Speaker 4: but only one point seven percent felt prepared, right, and

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Speaker 4: so there's this kind of dissonance between the preparedness and

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Speaker 4: the level of enthusiasm that's there. And then you ask

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Speaker 4: in the next level question, why do you not feel prepared?

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Speaker 3: There's two reasons that come up.

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Speaker 4: The first one is they don't feel like they've got

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Speaker 4: the right infrastructure in place to make sure that they'll

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Speaker 4: be able to harness the full potential of AI. And

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Speaker 4: the second one is safety and security actually holds them

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Speaker 4: back because they feel like it also is going to

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Speaker 4: have a negative effect on adoption because if you don't

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Speaker 4: trust the system, you're not going to use it right,

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Speaker 4: And so that's in it. Those are two areas where Cisco,

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Speaker 4: you know, helps customers out and what we've done with

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Speaker 4: and videos, we just announced a partnership for this thing

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Speaker 4: called the Cisco the Secure AI Factory.

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Speaker 3: Now, what is an AI factory.

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Speaker 4: An AI factory essentially is a data center that's meticulously.

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Speaker 3: Built for AI workloads.

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Speaker 4: And what it allows you to do is make sure

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Speaker 4: that you can you can you can create these data

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Speaker 4: centers in the enterprise that can allow organizations to fully

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Speaker 4: harness the potential of AI, and so we are jointly

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Speaker 4: partnering over there wibr networking, our security, their technologies looks.

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Speaker 4: Cisco is one of the greatest networking companies in the world,

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Speaker 4: and Video is a pioneer on the chips and actually

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Speaker 4: create it to some degree. The movement in AI and

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Speaker 4: the combination of the two companies together, and I think

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Speaker 4: you're going to see more and more of this where

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Speaker 4: companies are going to partner with each other in this

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Speaker 4: ecosystem to really go serve needs of customers and work backwards,

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Speaker 4: even if there might be a slight competitive elopment.

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Speaker 1: This is fascinating to me because what it signifies is

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Speaker 1: there's a growing number of companies that don't want to

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Speaker 1: rely on the hyperscalers, that don't want to rely on

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Speaker 1: the cloud systems to provide the artificial intelligence for their businesses.

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Speaker 1: And it raises a question about the model that everyone

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Speaker 1: has bought into in the market, which is that they

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Speaker 1: will be the big beneficiaries. How much is that changing

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Speaker 1: with companies not wanting to necessarily develop their artificial intelligence

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Speaker 1: in the cloud for security reasons and want to have

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Speaker 1: it in secure locations that keeps their data encapsulated.

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Speaker 3: I think you're going to have both.

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Speaker 4: I think there's going to be probably the fastest growth

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Speaker 4: that hyperscalers experience that they've ever experienced with AI, and

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Speaker 4: there will be the fastest growth that enterprises have because

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Speaker 4: there will be some data centers that they'll want to

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Speaker 4: repatriate back within the enterprise so that they can make

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Speaker 4: sure that especially in areas like Inferunce, you'll actually see

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Speaker 4: a lot more of that.

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Speaker 3: There's two big areas.

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Speaker 4: There's training infrastructure that's needed to train the models, and

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Speaker 4: then there's inferencing, which is what happens when you use

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Speaker 4: the models. And on the inferencing side, you're seeing a

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Speaker 4: fair amount of repatriation of data centers back in enterprise.

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Speaker 4: And I think you're going to see a little bit

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Speaker 4: of both. And we want to make sure that whether

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Speaker 4: you're a hyperscaler, you're a service provider, you're an enterprise,

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Speaker 4: Cisco wants to serve each one of them in a

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Speaker 4: way that they can actually have infrastructure be plug and

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Speaker 4: play and it's massively simplified.

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Speaker 3: It's still too complicated.

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Speaker 1: What's the role of government in this? There's tremendous competition

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Speaker 1: around the world. Obviously, I'm thinking of Washington and Beijing.

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Speaker 3: Do you like what you're hearing out of the administration.

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Speaker 4: I'm actually very optimistic about the kind of things that

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Speaker 4: you're seeing across the board with the enthusiasm on AI.

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Speaker 4: If we weren't talking about AI, I would be concerned.

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Speaker 4: But right now the governments are talking about it. They're

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Speaker 4: talking about how automation happens within the government, how automation

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Speaker 4: is happening in the private sector, how are they're going

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Speaker 4: to make sure that they can accelerate the innovation on

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Speaker 4: those areas.

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Speaker 3: So I think it's not positive.

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Speaker 2: Are we going to be replaced? So we care about?

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Speaker 4: No, John, You'll still be here in five years from now.

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Speaker 4: I'm still going to come and talk to you after

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Speaker 4: the show, and it's not going to be an AI humanoid.

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Speaker 3: It's going to be John.

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Speaker 2: That's all I wanted to know. That's all I care about.

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Speaker 1: How do you know I haven't already been replaced?

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Speaker 2: That would be incredibly.

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Speaker 3: Sorry.

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Speaker 2: Kerry had a guest recently. It was remote and I

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Speaker 2: worried it might be AI. Just didn't have a clue.

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Speaker 2: You never know, you never know, you never know.

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Speaker 3: G you're an Optimus. Someday this is going to be

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Speaker 3: a fun world.

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Speaker 2: Slightly converting me. I'm looking forward to being on this

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Speaker 2: journey with you, GT one of the best. Appreciate it,

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Speaker 2: thanks for being about Thank you, G two. But it's

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Speaker 2: now there. The Cisco Chief Product Officer and executive vice president,