00:00Do you see this as a signal that the mood is changing and that national security is now the United States not having its technology sold internationally,
00:07not that U.S. technology will be allowed out of the U.S. into, say, China's hands?
00:13Yeah, there's a very specific point of distinction of what the omission of that rulemaking and the GAIN Act provides for.
00:22The original proposal was that NVIDIA would have to prioritize American customers for the lead edge chips over a potential export customer,
00:33which would have, of course, caught China within that.
00:36You know, the pieces of news that came out of Jensen Wang's visits to D.C. yesterday were export controls have been discussed with the president.
00:42And we know because Jensen Wang went on a two and a half hour Joe Rogan podcast that they talk regularly about this issue.
00:49They're also, and I'm interested in AMH's take on this, you know, there is very much a consciousness,
00:53particularly among Republican lawmakers, that they want, NVIDIA wants to be able to export to China, right?
01:02But the baseline assumption of this company is zero revenues from that market.
01:05The more interesting point here is what does China want?
01:10You know, Jensen in speaking to reporters kind of acknowledged we don't even know that if we were permitted to export the technology,
01:16would China take it?
01:18And if you look at some of the Bloomberg reporting overnight, there is a clear signal that China isn't necessarily that interested in a deprecated American chip at this moment in time.
01:29Well, yes, he's saying that China will not accept a degraded chip, Ed, but will they accept a high advanced chip,
01:36which basically would mean the administration, to Lisa's point, having to do a little bit of reverse course when it comes to national security.
01:42Do you think Jensen Wong was able to get that point across in Washington, D.C.?
01:47This is his view that he's been lobbying.
01:49Yeah, you know, clearly Jensen and NVIDIA are staying in close proximity to the administration,
01:55not just the administration, right, Congress, because that's going to be a factor.
01:59You know, but Jensen is also not foolish.
02:02You know, he literally said, we do not know what the state of play is and whether we'll be able to or not.
02:06We've talked a lot, AMH, about this spectrum of China hawkishness.
02:12At one end, you have the China hawks who say we must not sell this technology under any circumstances with particular anxiety that China will use the technology for military purposes.
02:22But at the other end, and those close to the president advising him, there is a softer attitude,
02:28which is it is better to sell some sort of technology, but it must be deprecated to China than none at all,
02:34because that will create a vacuum if we sell none at all, a vacuum by which, you know,
02:39China's domestic players will occupy and then potentially move ahead of the United States.
02:45Again, another thing that simply Jensen Wong said to reporters overnight was America is still ahead.
02:50But, you know, be very clear about the threat and potential competition that China poses, which isn't new.
02:55He's said that so many times. Just quickly here, Ed, it does seem like Jensen Wong has had the lead position,
03:01the pole position when it comes to Washington, D.C. and influencing President Trump.
03:05It seems like Alphabet's AI chips are gaining ground when it comes to the rest of the universe.
03:10How do you parse that out? How much ground do you actually see the Google chips as gaining?
03:15I don't hear any other word more often than TPU. Every single day, TPU, TPU, TPU.
03:21You know, markets have moved in recent weeks when there's been reports that Alphabet is considering allowing third parties to take the product,
03:30selling it through Google Cloud Platform. The technology pushback on that would be that TPUs are designed for a very narrow and specific use case,
03:39whereas GPUs from NVIDIA principally but also AMD have much broader application.
03:44They're much more diverse. It's the thing that everyone is waiting on.
03:48And if there is clear, tangible evidence of displacement, in other words, a big technology company opting for Alphabet's TPUs over an NVIDIA,
03:57in that circumstance, then it would be evidence that the market's moving forward on this.
04:01And it's no surprise that, once again, it's one of the most read stories on the terminal today.
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