WEBVTT -  The Next Phase of the AI Buildout

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 2>Tim Stenoveek on Bloomberg Radio. All right, we have to

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<v Speaker 2>have a lot to talk about with Dan Ives. There

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<v Speaker 2>is a lot to talk Cerever Systems just reporting following

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<v Speaker 2>eight percent second quarter revenue disappoints. Core we've surging after

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<v Speaker 2>the AI spending frenzy spurred faster sales growth than anticipated,

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<v Speaker 2>with sales expected to be three point four to five

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<v Speaker 2>billion to three point six billion in the third quarter.

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<v Speaker 2>We've got with us for the next half hours. So

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<v Speaker 2>Dan Ives, he's partner and senior managing director at Yorkville Ives.

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<v Speaker 2>It's the first time I've read that title for you, Dan,

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<v Speaker 2>because you know, for so long we knew you at

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<v Speaker 2>Webbush and we knew you as this what many people

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<v Speaker 2>called it, a tech permeable. I want to get to

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<v Speaker 2>your outlook on not just this earning season and what

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<v Speaker 2>to expect from Nvidia and the so called circular financing.

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<v Speaker 2>But before we do that, because we haven't had a

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<v Speaker 2>chance to sit down with you since since this job,

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<v Speaker 2>Chane and I want to just hear from you why

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<v Speaker 2>you left web Bush and what you're doing now at

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<v Speaker 2>Yorkville Lives.

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<v Speaker 1>Yeah.

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<v Speaker 3>I mean for me, it was a great eight years

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<v Speaker 3>at Webbush, but it was to create what I view

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<v Speaker 3>as like a modern merchant bank, you know, really something

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<v Speaker 3>where when I think about this Fourth Industrial Revolution and

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<v Speaker 3>from my you know called going in wall streets since

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<v Speaker 3>the late nineties, it was seeing around corners and seeing

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<v Speaker 3>the opportunity and I just felt like for me it

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<v Speaker 3>was an evolution in my career for something that to

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<v Speaker 3>build a bank and especially have great research that's focused

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<v Speaker 3>on tech energy, you know, and really across industries. And

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<v Speaker 3>I found great partners in Yorkville, and to me, it

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<v Speaker 3>was the right place, right time to do something like this.

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<v Speaker 3>Given my view of the AI revolution.

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<v Speaker 2>Well, I want to get to more on more on that,

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<v Speaker 2>and we're going to get to the AA revolution. But

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<v Speaker 2>we spoke to you at future Proof, where you'll be

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<v Speaker 2>there again this year. It's September of last year, and

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<v Speaker 2>I remember the conversation because it was it was not

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<v Speaker 2>just about what you were doing at Wedbush, but it

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<v Speaker 2>was about the ETF that you had launched. You were

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<v Speaker 2>also chairman at the time of World Coin. This this

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<v Speaker 2>crypto project or ACA yeah, oh ako, thank you, which

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<v Speaker 2>is part of which was yeah, which was brilliant the

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<v Speaker 2>world okay, related to world coin. So what is like

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<v Speaker 2>what is the status of those projects now?

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<v Speaker 3>Yeah, So that so in terms of like I left ACA, yeah,

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<v Speaker 3>and that like you know, no, there's been no change

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<v Speaker 3>in terms of that, and that's something where for me, look,

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<v Speaker 3>it was sort of like simplifying you know, I think

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<v Speaker 3>some of my you know, other activities, and really to me,

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<v Speaker 3>it was really like doubling down to some extent on

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<v Speaker 3>what people know me as in terms of when it

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<v Speaker 3>comes to tech, when it comes to you know, great research,

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<v Speaker 3>and I think, you know, I think around the world,

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<v Speaker 3>so many more investors have such a focus in tech

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<v Speaker 3>and it's something where to try to be some guiding light,

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<v Speaker 3>you know, relative to a lot of the confusion that

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<v Speaker 3>you see in the market.

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<v Speaker 4>What can you do now that you want that you

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<v Speaker 4>couldn't do before.

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<v Speaker 3>I mean, there's you know, we're we're still awaiting our

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<v Speaker 3>research license. But for now this is like when it's

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<v Speaker 3>all sort of built, it will be something that it

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<v Speaker 3>will be exactly the same Dan ives research and you know,

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<v Speaker 3>what we've done for investors over the decades and and

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<v Speaker 3>and that's really why we built it. But also it's

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<v Speaker 3>for me. It's finding the right people that want to

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<v Speaker 3>do things and when it comes to innovation, when it

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<v Speaker 3>comes to building, whether it's on the research side or

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<v Speaker 3>you know, across the industry. And I just think right

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<v Speaker 3>now like we're going through an innovation boom, and in

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<v Speaker 3>my career it's really been an evolution for me. There

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<v Speaker 3>was a natural next step. And I've been super excited

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<v Speaker 3>about the feedback that we've gotten and just you know,

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<v Speaker 3>from you know, from you know, many around the world.

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<v Speaker 1>We have seen a lot of innovation cycles and you

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<v Speaker 1>have been along for that ride. And I'm just curious

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<v Speaker 1>how you continue to put this particular cycle in its place,

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<v Speaker 1>in its spot, and how much do we really know

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<v Speaker 1>about the ultimate impact.

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<v Speaker 3>I mean, it's something like myself that's on so much

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<v Speaker 3>time in Asia, Yeah, so much time talking to CEOs

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<v Speaker 3>CIOs that's done this since the late nineties. This is

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<v Speaker 3>a true fourth Industrial Revolution, and yeah, we've talked about

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<v Speaker 3>it with you guys made for many years. And that's

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<v Speaker 3>why I think what a lot of times, like the

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<v Speaker 3>skeptics or the bears, you know, they they're bearished from

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<v Speaker 3>the fifteen to fourth of their New York City office

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<v Speaker 3>building or wherever it may be. But they're not in

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<v Speaker 3>fabs in Taiwan. They're not seeing the demand. And the

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<v Speaker 3>reality is like, for the first time in thirty years,

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<v Speaker 3>the US is ahead of China when it comes to tech.

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<v Speaker 3>And I think that's extremely important relative to where we are.

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<v Speaker 3>And I think what you've seen with earnings, whether it's

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<v Speaker 3>on the neo clouds, the hyperscalers, that it's just it

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<v Speaker 3>is crystal queer that demonization fees is now starting to

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<v Speaker 3>take over.

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<v Speaker 1>But do we have to be worried about China because

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<v Speaker 1>they certainly have the government now saying okay, they are

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<v Speaker 1>prioritizing this and with money, with efforts.

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<v Speaker 4>You know how it works. We've seen it with cars,

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<v Speaker 4>We've seen it.

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<v Speaker 1>We've seen it in so many different industries, and they

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<v Speaker 1>want to make sure they have a place at the

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<v Speaker 1>table with this.

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<v Speaker 4>So where how do you how far are they along?

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<v Speaker 4>What do we really know about their expertise?

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<v Speaker 3>So I think, as someone them, I said that spends

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<v Speaker 3>so much time in the region, it's one of counting

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<v Speaker 3>them out is the wrong bet because the reality is

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<v Speaker 3>is that not just from a government perspective when it

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<v Speaker 3>comes to energy, you know just how had they been

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<v Speaker 3>when it comes to nuclear energy, when it comes to robotics,

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<v Speaker 3>and it's one where I think part of why Jensen

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<v Speaker 3>is so focused on selling into China, and I think

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<v Speaker 3>all the chip companies because if you do not sell

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<v Speaker 3>into China, it just makes them that much more powerful,

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<v Speaker 3>narrows the gap. And also when it comes to like

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<v Speaker 3>the political whether it's grandstanding, whatever you want to call

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<v Speaker 3>in terms of like what's happened here on the data

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<v Speaker 3>centers and the data centers of the hearts and lungs

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<v Speaker 3>of the AI Revolution. So if you have like moratoriums

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<v Speaker 3>and you shut down data centers, the winner in that

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<v Speaker 3>becomes China relative to what could happen here in the US.

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<v Speaker 3>So I actually think like the biggest sort of risk

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<v Speaker 3>when you think about what could happen to AI revolution,

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<v Speaker 3>it's not cap backs, it's not use cases. The biggest

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<v Speaker 3>risk is just the political piece gets in the way

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<v Speaker 3>in terms of the data center buildouts, because I think

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<v Speaker 3>that's something where any every data center that gets voted down, Yeah,

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<v Speaker 3>China smiles.

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<v Speaker 2>I think we have time for this question. It's a

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<v Speaker 2>really good one. It's from Brendan and Maryland. Yeah, he

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<v Speaker 2>has a question for you, says you've likened the AI

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<v Speaker 2>Revolution to building out the Vegas Strip in the fifties.

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<v Speaker 2>Can you elaborate on this analogy? What role is Microsoft playing? Here?

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<v Speaker 2>Are the hyperscalers like the big casinos and famously does

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<v Speaker 2>the house always win?

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<v Speaker 3>Great? Great, great, great question. Look, and the reason I

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<v Speaker 3>talk about like Vegas nineteen fifty five because if someone

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<v Speaker 3>told you in nineteen fifty five what eventually the sphere

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<v Speaker 3>was going to be and what Vegas is, but then

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<v Speaker 3>all of a sudden nineteen fifty six there was an

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<v Speaker 3>issue with the building, You're like, oh, that's the strip.

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<v Speaker 3>Thing's not gonna happen. It's not gonna work. It just

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<v Speaker 3>that's big tech companies Like that's their view, right, Like

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<v Speaker 3>go back to Micro if you like. Microsoft is a

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<v Speaker 3>good example. Like two months ago, right, like New York

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<v Speaker 3>City cab drivers barish on Microsoft and that now look today, right,

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<v Speaker 3>there's ticket tape parades for it. It just speaks like

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<v Speaker 3>because you have like Nadella is a north star and

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<v Speaker 3>he's able to see around corners and understand that on

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<v Speaker 3>the Vegas strip. There's only one strip. If you don't

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<v Speaker 3>have a place on that strip, are you staying at

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<v Speaker 3>that hotel two miles from Vegas? Eventually you're in Santa

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<v Speaker 3>Fe or whatever.

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<v Speaker 1>I mean.

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<v Speaker 3>The point is, I'm just trying to explain, like these

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<v Speaker 3>companies know there's one strip, and that's why when it's like,

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<v Speaker 3>well what about cap bex, if it's like metal like

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<v Speaker 3>stocks down, does that mean that they start to, you know,

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<v Speaker 3>they like slow down their bills because they know that

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<v Speaker 3>if they slow it down, they won't have a place

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<v Speaker 3>in the strip. And then what happens when you look

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<v Speaker 3>out a few years from now and you're three miles

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<v Speaker 3>off the strip.

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<v Speaker 4>I want to get to the second part, Brendan's question,

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<v Speaker 4>what a.

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<v Speaker 2>Great question in two parts Bloomberg dot com slash ask Radio.

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<v Speaker 2>That's how Brandon was able to ask the question Bloomberg

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<v Speaker 2>dot com, slash ask Radio.

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<v Speaker 1>This is for terminal subscribers, Bloomberg Terminal subscribers and those

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<v Speaker 1>who also are subscribers to Bloomberg dot com. So he

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<v Speaker 1>went on Dan to say even more some question whether

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<v Speaker 1>this AI boom is due to chip sellers logging revenues

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<v Speaker 1>faster than reporting their expensives.

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<v Speaker 3>Can you speak to that. Yeah, So I view it

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<v Speaker 3>as right now, demand the supply for chips, Yeah, thirteen

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<v Speaker 3>fourteen to one, demand the supply. The one thing is that, Look,

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<v Speaker 3>I view the whole thing as kind of like a

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<v Speaker 3>Jenga puzzle, having one thing about it, you put it together, right,

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<v Speaker 3>whether it's Cisco, Neo Cloud, hyper scalers, what's happened Palenteer

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<v Speaker 3>on the The reality is is that they hold the cards,

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<v Speaker 3>the chip players, because you don't have many of them

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<v Speaker 3>and you're not going to create new ones. And that's Look,

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<v Speaker 3>that's similar what you see in Korea and the cost

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<v Speaker 3>with the memory players. And I just think it's one

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<v Speaker 3>where when some try to kind of poke holes in

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<v Speaker 3>some of these stories. The reality is, and it's always

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<v Speaker 3>been our vue that like investors are way underestimating the

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<v Speaker 3>scale and scope of the AI revolution.

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<v Speaker 1>But would you say, and certainly we've heard this around

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<v Speaker 1>this table of the semiconductor makers who are very sensitive

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<v Speaker 1>to the cycles of the booms and busts, that they

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<v Speaker 1>are going to be very careful also in controlling supply

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<v Speaker 1>in the market. So yes, they're going to invest in,

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<v Speaker 1>They're going to ramp up but they're not going to

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<v Speaker 1>do it so much that all of a sudden the

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<v Speaker 1>price drops, So there's got to be a I don't

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<v Speaker 1>know what the factor is that in that excess demand

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<v Speaker 1>thirteen fourteen times whatever you said for Chip. How much

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<v Speaker 1>of that though, is the semiconductor company's being very smart

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<v Speaker 1>and kind of managing the situation and keeping those margins healthy.

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<v Speaker 3>I think at one point you'll hit that, but for now,

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<v Speaker 3>now the look equilibrium you won't hit till probably twoenty

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<v Speaker 3>twenty eight, maybe early twenty twenty nine.

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<v Speaker 1>Everybody keeps talking about twenty thirty. I'm like, I'm gonna

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<v Speaker 1>have a tattooed on my forehead because it just feels

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<v Speaker 1>like I won't do that.

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<v Speaker 3>And that's why the reality is we've always ai revolution, Like, look,

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<v Speaker 3>we thought it was third inning, and now you could

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<v Speaker 3>argue is a bomb of the second.

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<v Speaker 1>When you go to China, when you travel, like, I

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<v Speaker 1>want to ask you about China, like what do you

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<v Speaker 1>actually get to see in terms of what's going on there?

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<v Speaker 1>Because I just feel like they're so I don't think

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<v Speaker 1>it's so easy, but I'm curious because when somebody does

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<v Speaker 1>get a peek into some of what's going at China,

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<v Speaker 1>I think it really surprises everybody.

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<v Speaker 3>It's the innovation, it's the it's really what they're doing

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<v Speaker 3>on robotics, on what they're doing in chips, on what

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<v Speaker 3>they're doing on when you think have physical AI. To me,

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<v Speaker 3>that is the thing that stands out the most because

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<v Speaker 3>I think the name of the game and AI today

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<v Speaker 3>you could argue, like some of the stuff it's almost

0:11:14.840 --> 0:11:18.360
<v Speaker 3>table stakes relative to when you think go to physical

0:11:18.400 --> 0:11:20.280
<v Speaker 3>AI and when you go to what sort of the

0:11:20.320 --> 0:11:25.599
<v Speaker 3>next phase is here? And that's why right now, like robotics, autonomous,

0:11:25.800 --> 0:11:29.400
<v Speaker 3>true physical AI, I've always viewed physical AI as sort

0:11:29.400 --> 0:11:31.480
<v Speaker 3>of the golden goose of.

0:11:31.880 --> 0:11:35.760
<v Speaker 1>So agentic AI and agents that that's not the gold.

0:11:36.400 --> 0:11:40.640
<v Speaker 3>I view that as a highway to get onto ultimately

0:11:40.720 --> 0:11:43.679
<v Speaker 3>what's going to be the probably the biggest monization piece.

0:11:44.160 --> 0:11:45.840
<v Speaker 3>And I think that's why, like a lot of times,

0:11:45.840 --> 0:11:49.040
<v Speaker 3>I think investmors whether it's like China in terms of

0:11:49.080 --> 0:11:52.320
<v Speaker 3>open source and different models that come and we go

0:11:52.400 --> 0:11:55.360
<v Speaker 3>through these sort of like mini scales, deep seek type moments.

0:11:56.200 --> 0:11:59.280
<v Speaker 3>The value is in the data, that's our sovereign data.

0:11:59.360 --> 0:12:01.360
<v Speaker 3>You know, when you look at a carbon pound teer,

0:12:01.400 --> 0:12:04.160
<v Speaker 3>they talk about so much gentsen starting to talk about

0:12:04.160 --> 0:12:06.640
<v Speaker 3>a lot, but it's an arms race that's playing out

0:12:06.640 --> 0:12:08.720
<v Speaker 3>across the board, which speaks as you used to like

0:12:08.760 --> 0:12:12.360
<v Speaker 3>circular financing, and just you know, we go through these

0:12:12.360 --> 0:12:14.240
<v Speaker 3>sort of ebbs and flows and the worries there.

0:12:14.360 --> 0:12:16.640
<v Speaker 2>Well, speaking of worries, some folks out there are worried

0:12:16.640 --> 0:12:20.040
<v Speaker 2>about concentration risk. We spoke to ed Zytron a few

0:12:20.040 --> 0:12:23.240
<v Speaker 2>weeks ago from Easy Primary Research. He was on our program.

0:12:23.320 --> 0:12:25.600
<v Speaker 2>Here's what he said about concentration risk.

0:12:26.240 --> 0:12:28.760
<v Speaker 5>So, in counter year twenty twenty five, according to my

0:12:28.760 --> 0:12:32.120
<v Speaker 5>own reporting about open AI's numbers, sixty nine percent if

0:12:32.160 --> 0:12:35.720
<v Speaker 5>the year over year growth of Microsoft Intelligent Cloud segment

0:12:36.000 --> 0:12:38.600
<v Speaker 5>was actually from open Ai. Without that, it would have

0:12:38.679 --> 0:12:40.920
<v Speaker 5>only grown eight percent year of year, which is barely

0:12:40.960 --> 0:12:44.440
<v Speaker 5>beating inflation. And so everyone is being sold what I

0:12:44.679 --> 0:12:47.920
<v Speaker 5>consider kind of a lie. It's honestly kind of a scandal.

0:12:48.240 --> 0:12:51.280
<v Speaker 2>Those at Zetron of Easy Primary Research. After he was on.

0:12:51.520 --> 0:12:53.720
<v Speaker 2>Just a few days later, our Bloomberg News team reported

0:12:53.760 --> 0:12:57.720
<v Speaker 2>that Microsoft generates most of its AI revenue from open Ai.

0:12:58.280 --> 0:13:02.920
<v Speaker 2>It's said that what about seventy percent of sales in

0:13:02.960 --> 0:13:05.880
<v Speaker 2>a year came from just a couple of different companies.

0:13:06.960 --> 0:13:09.760
<v Speaker 2>Excuse me, Microsoft business seventy percent of its actual AI

0:13:09.880 --> 0:13:13.640
<v Speaker 2>sales came from open ai during its most recent fiscal year.

0:13:14.120 --> 0:13:15.559
<v Speaker 2>Is there concentration risk.

0:13:15.880 --> 0:13:20.839
<v Speaker 3>But that'd be like the chiefs if they lost mahomes,

0:13:21.200 --> 0:13:24.480
<v Speaker 3>They're done. The point is, like, the reality is, like

0:13:24.679 --> 0:13:29.920
<v Speaker 3>open ai and Anthropic their core essentral foundations, they around.

0:13:30.000 --> 0:13:32.960
<v Speaker 3>No one will doubt that. But the reality is is

0:13:32.960 --> 0:13:35.520
<v Speaker 3>that when you continue to see the funding there and

0:13:35.559 --> 0:13:39.160
<v Speaker 3>what's happening, is that the tech companies where there's the

0:13:39.240 --> 0:13:42.439
<v Speaker 3>hyperscalers and others, Yeah, they have so much investment in them,

0:13:42.520 --> 0:13:46.319
<v Speaker 3>but that's just the first phase. That number two years

0:13:46.320 --> 0:13:48.880
<v Speaker 3>from now, three years from now, the conentration risk is not.

0:13:49.160 --> 0:13:51.720
<v Speaker 2>Meaning there will be many companies that are paying, of

0:13:51.760 --> 0:13:53.400
<v Speaker 2>course because now for these services.

0:13:53.559 --> 0:13:56.480
<v Speaker 3>Yeah, because today it's a small group of companies that

0:13:56.520 --> 0:13:58.760
<v Speaker 3>are paying. But when you think about what's happening sovereign

0:13:58.840 --> 0:14:02.960
<v Speaker 3>AI and today really being much more just US based

0:14:02.960 --> 0:14:05.440
<v Speaker 3>and China based, what's happened in the Middle East and

0:14:05.640 --> 0:14:09.000
<v Speaker 3>India and just across the world. We're still in the

0:14:09.160 --> 0:14:11.960
<v Speaker 3>early parts of it. But that's why open AI and Anthropic,

0:14:11.960 --> 0:14:14.440
<v Speaker 3>when you think about as they go public, and new

0:14:14.520 --> 0:14:19.120
<v Speaker 3>is opportunity that just further souidifies the foundation for the

0:14:19.160 --> 0:14:19.920
<v Speaker 3>AI revolution.

0:14:20.080 --> 0:14:22.800
<v Speaker 1>I'm going to play Devil's advocate to you because I

0:14:22.800 --> 0:14:26.200
<v Speaker 1>think what someone had said too is that Okay, so

0:14:26.360 --> 0:14:28.760
<v Speaker 1>most of the revenue comes from the AI revenue for

0:14:28.800 --> 0:14:30.080
<v Speaker 1>Microsoft comes from open ai.

0:14:30.160 --> 0:14:32.800
<v Speaker 4>But help me out here. I'm giving you a gift

0:14:32.880 --> 0:14:34.280
<v Speaker 4>because I'm usually tough. The I liked it.

0:14:34.480 --> 0:14:35.640
<v Speaker 3>I like that with you.

0:14:35.680 --> 0:14:38.080
<v Speaker 1>No, but the idea is open ai has a ton

0:14:38.080 --> 0:14:41.600
<v Speaker 1>of customers and so that's where the diversification is.

0:14:41.600 --> 0:14:43.120
<v Speaker 4>But it comes through that conduit.

0:14:43.200 --> 0:14:46.280
<v Speaker 1>So I guess essentially if Microsoft and open ai go

0:14:46.360 --> 0:14:47.880
<v Speaker 1>to battle, that could be a problem.

0:14:47.920 --> 0:14:51.080
<v Speaker 4>But is that kind of is that the right reasoning?

0:14:51.120 --> 0:14:52.640
<v Speaker 4>Sorry to fine, no.

0:14:52.640 --> 0:14:55.720
<v Speaker 3>Because but to that point, is that the concentration risk.

0:14:56.000 --> 0:14:58.400
<v Speaker 3>It's not just viewed as like it's open Ai. You're

0:14:58.400 --> 0:15:02.240
<v Speaker 3>talking about thousands of costs, anthropic seem thing what they're

0:15:02.280 --> 0:15:04.520
<v Speaker 3>doing the enterprise. It used to be like what I view,

0:15:04.560 --> 0:15:07.680
<v Speaker 3>I go say from Microsoft be a concentration risk, but

0:15:07.760 --> 0:15:11.400
<v Speaker 3>Microsoft is the core part of enterprises around the world.

0:15:11.760 --> 0:15:16.440
<v Speaker 3>So Microsoft represents so many enterprises that are ultimately going

0:15:16.600 --> 0:15:19.720
<v Speaker 3>So I just I view I understand and that's been

0:15:20.000 --> 0:15:23.960
<v Speaker 3>that's been a concern. But eighteen months ago it was

0:15:24.000 --> 0:15:27.440
<v Speaker 3>a concern. Look where we are today, and that's why

0:15:27.480 --> 0:15:31.440
<v Speaker 3>I think those that bet against this, it's it's betting

0:15:31.680 --> 0:15:36.280
<v Speaker 3>against a cap X cycle that actually continues to accelerate.

0:15:36.840 --> 0:15:38.600
<v Speaker 2>There it feels like there was this there was this

0:15:38.680 --> 0:15:42.680
<v Speaker 2>moment in New York in like the mid two thousand

0:15:43.200 --> 0:15:47.200
<v Speaker 2>teams where all these venture capital backed companies were flushed

0:15:47.200 --> 0:15:50.000
<v Speaker 2>with cash and Uber and Lyft were duking it out,

0:15:50.080 --> 0:15:53.360
<v Speaker 2>giving you incentives to like take this car, take this car,

0:15:53.920 --> 0:15:55.920
<v Speaker 2>and you as a consumer, and there was a service

0:15:55.960 --> 0:15:58.040
<v Speaker 2>that came and picked up a package at my home

0:15:58.120 --> 0:16:00.360
<v Speaker 2>and shipped it off and it was free. Went out

0:16:00.400 --> 0:16:03.280
<v Speaker 2>of business. But the point is is that venture capitalists

0:16:03.440 --> 0:16:07.160
<v Speaker 2>were subsidizing this sort of on demand lifestyle. It kind

0:16:07.160 --> 0:16:09.720
<v Speaker 2>of feels like sometimes we're there with these llms where

0:16:09.800 --> 0:16:12.840
<v Speaker 2>it's it's free to use Claude, you know, the than

0:16:12.880 --> 0:16:14.560
<v Speaker 2>twenty minutes later you're like, Okay, well I can't use

0:16:14.600 --> 0:16:17.440
<v Speaker 2>claud anymore. I'll just go use chat GPT. Okay, use

0:16:17.560 --> 0:16:20.160
<v Speaker 2>up everything with chat GPT. Oh, I'll go just you know,

0:16:20.200 --> 0:16:23.400
<v Speaker 2>go to Google and use the AI that Google offers,

0:16:23.440 --> 0:16:25.440
<v Speaker 2>like it kind of feels like we're in that moment

0:16:25.480 --> 0:16:28.400
<v Speaker 2>again where these are interchangeable, at least the lms.

0:16:28.600 --> 0:16:33.160
<v Speaker 3>But I've never view that the models are the models

0:16:33.200 --> 0:16:34.800
<v Speaker 3>and is not going to be where the value. That's

0:16:34.840 --> 0:16:36.920
<v Speaker 3>why anthropic CA and open AI they're already seen, they're

0:16:36.920 --> 0:16:39.120
<v Speaker 3>seeing around the corner. They're focused on enterprise bill and

0:16:39.240 --> 0:16:43.520
<v Speaker 3>enterprise sales force, ultimately really butting heads with your core

0:16:43.680 --> 0:16:44.640
<v Speaker 3>enterprise players.

0:16:45.240 --> 0:16:47.200
<v Speaker 2>It's going to be in the data. I mean, if

0:16:47.320 --> 0:16:48.000
<v Speaker 2>use wook.

0:16:47.760 --> 0:16:50.440
<v Speaker 3>Where it's all heading, it is just going to be

0:16:50.480 --> 0:16:54.360
<v Speaker 3>a conduit the because eventually models, you're gonna have hundreds

0:16:54.360 --> 0:16:59.320
<v Speaker 3>of models. You have models, regional, vertical, It'll get more

0:16:59.320 --> 0:17:05.000
<v Speaker 3>and more in specific industry specific construction models, retail, consumer.

0:17:05.480 --> 0:17:07.479
<v Speaker 3>Like the point is, and that's also where like if

0:17:07.520 --> 0:17:09.280
<v Speaker 3>you think like where Apple's starting to go on the

0:17:09.320 --> 0:17:12.639
<v Speaker 3>consumer side and like they'll finally be, you know, a

0:17:12.720 --> 0:17:15.760
<v Speaker 3>sort of player. But I just think it's one where

0:17:16.520 --> 0:17:20.080
<v Speaker 3>where AI is today and where it's going to be

0:17:20.840 --> 0:17:24.800
<v Speaker 3>three four years from now. I think for many investors, look,

0:17:24.800 --> 0:17:26.159
<v Speaker 3>you get one of two investors.

0:17:26.280 --> 0:17:27.359
<v Speaker 2>You have to be if you're.

0:17:27.200 --> 0:17:31.280
<v Speaker 3>A technologist and maybe and someone that tries to around

0:17:31.320 --> 0:17:33.520
<v Speaker 3>corners up you're gonna view it is like this is

0:17:33.520 --> 0:17:37.000
<v Speaker 3>a true fourth and this revolution. If you're one of

0:17:37.040 --> 0:17:40.080
<v Speaker 3>the bears that have called ten of the last two downturns,

0:17:41.000 --> 0:17:44.000
<v Speaker 3>then you'll you'll say this is another one and they'll

0:17:44.040 --> 0:17:47.840
<v Speaker 3>be in hibernation mood and they can't see AI in spreadsheets.

0:17:47.880 --> 0:17:50.560
<v Speaker 4>But you're a smart man. What's the risk? We have

0:17:50.600 --> 0:17:53.200
<v Speaker 4>about a minute or so left. There's a risk to everything.

0:17:53.320 --> 0:17:58.119
<v Speaker 3>The biggest risk, the biggest risk government is government. When

0:17:58.160 --> 0:18:01.120
<v Speaker 3>you look like when you look at what's having state, local.

0:18:01.119 --> 0:18:02.800
<v Speaker 4>More toryum data centers.

0:18:03.560 --> 0:18:05.760
<v Speaker 3>That's the biggest midterm elections the.

0:18:05.800 --> 0:18:07.640
<v Speaker 2>Politically, it's not just New York there are a lot

0:18:07.720 --> 0:18:09.040
<v Speaker 2>of it, but but around the country.

0:18:09.040 --> 0:18:11.399
<v Speaker 3>And I spent so much time in DC, and the

0:18:11.480 --> 0:18:14.560
<v Speaker 3>point is like a lot of politicians that are still

0:18:14.640 --> 0:18:18.520
<v Speaker 3>using blackberris. Do you want them ultimately determining AI? And

0:18:18.560 --> 0:18:21.560
<v Speaker 3>I think that's the scary thing, right, Like it's one

0:18:21.600 --> 0:18:26.040
<v Speaker 3>where what stifles the innovation that you need regulatory no doubt. Yeah,

0:18:26.080 --> 0:18:28.479
<v Speaker 3>and pr problem a lot that has been caused by

0:18:28.480 --> 0:18:30.840
<v Speaker 3>the tech industry in terms of saying wiping out jobs

0:18:30.880 --> 0:18:34.640
<v Speaker 3>eight months, scare tactics, things like that. So they've definitely contributed.

0:18:34.880 --> 0:18:38.320
<v Speaker 3>But I think that is the biggest risk when you

0:18:38.359 --> 0:18:41.520
<v Speaker 3>think about AI revolution relative to the political piece.

0:18:41.760 --> 0:18:46.440
<v Speaker 1>Do you think AI though, I mean, it's gonna wipe

0:18:46.480 --> 0:18:49.879
<v Speaker 1>out tons of job people talk about universal basic income.

0:18:49.880 --> 0:18:52.520
<v Speaker 1>I've talked to developers, We've talked to developers about thinking

0:18:52.560 --> 0:18:56.399
<v Speaker 1>about building houses for people who are on because of AI.

0:18:56.640 --> 0:18:58.640
<v Speaker 4>Forgive me only about forty seconds, but I'll just.

0:18:58.640 --> 0:19:01.360
<v Speaker 3>Take the other side and someone myself at whatever three

0:19:01.400 --> 0:19:03.119
<v Speaker 3>and a half million are miles and been around this

0:19:03.200 --> 0:19:06.639
<v Speaker 3>country so many times. The amount of towns and cities

0:19:06.640 --> 0:19:08.640
<v Speaker 3>that used to have seventy five thousand people now it's

0:19:08.720 --> 0:19:12.280
<v Speaker 3>ten thousand factories that went away to China Malaita. And

0:19:12.480 --> 0:19:14.359
<v Speaker 3>I view it as, for the first time in thirty years,

0:19:14.359 --> 0:19:16.480
<v Speaker 3>the US has headed China when it comes to technologies,

0:19:16.520 --> 0:19:19.439
<v Speaker 3>to the innovation boom and to what I view is

0:19:19.480 --> 0:19:22.920
<v Speaker 3>really a renaissance. I view that is to add jobs

0:19:23.040 --> 0:19:26.120
<v Speaker 3>in the United States, despite maybe some of the more

0:19:26.160 --> 0:19:27.159
<v Speaker 3>negative views today.

0:19:28.040 --> 0:19:30.560
<v Speaker 4>All right, so we get that research license and come back.

0:19:30.840 --> 0:19:33.359
<v Speaker 3>I will I can't wait.

0:19:33.560 --> 0:19:34.320
<v Speaker 2>I know, we can't wait.

0:19:34.359 --> 0:19:37.480
<v Speaker 1>I wait to have you. Dana's partner and senior managing

0:19:37.520 --> 0:19:39.639
<v Speaker 1>director at Yorkville and I'm joining us here in the

0:19:39.680 --> 0:19:40.600
<v Speaker 1>state of the debuttat