00:00Obviously there's going to be a lot of parsing of these numbers tomorrow. I think to a certain extent they
00:06don't necessarily matter in terms of the quarter itself.
00:09People really want to look at the overall trajectory of where this AI story is going. And that's where I
00:14want to start with you as to where you think it's going and whether NVIDIA will continue to lead it.
00:20Well certainly NVIDIA is in a great position to continue to lead it just to start with that as their
00:25chips and their overall software hardware packaging is unlike any other option for scaling AI.
00:33But I think the real question is and what investors are trying to figure out is they're sort of like
00:39when does this cycle end. I don't want to attribute evaluation to earnings that could end or go back down.
00:46And they maybe are worried that it's cyclical. But what I think that those investors are missing is that this
00:52is a fundamental shift in computing to a whole new generation of what technology will be able to achieve for
01:00humans in the next decade.
01:02And that build out is going to cost several trillion dollars. So this build out is going to take time
01:08and NVIDIA will be an extremely profitable well positioned company during this build out which I think will last the
01:14next at least five years.
01:16Well I am curious about the build out and the cost of it because it seems like that cost keeps
01:20rising. We've already talked I think before when we've had you on the program the cost of memory and some
01:24of the other inputs to build these data centers and the related investments not to mention the power and energy
01:29costs.
01:30And today we were talking about this big rise that we're seeing in long term treasury yields which of course
01:34raises the cost of capital for anybody looking to borrow.
01:38That's all correct. And that's the biggest risk to this story is the actual reality of implementation which involves like
01:47certain level political and societal risk as well as just capital risk.
01:51And there's all these things out there that make doing this difficult and that's okay because that's normal for something
01:59that's so revolutionary and you know needing such intensive investment.
02:03But what really matters is what's on the other side is their profits there.
02:08And that is I think what most investors maybe are underestimating is what are the upsides for these companies and
02:15we perceive them to be massive.
02:18So AI is now it's not the future it's happening now and the demand for it far outstrips the supply
02:24and ability of AI and we expect that to continue for the next five years.
02:28I am curious though and I'm just going to throw something at you and this is from Michael Burry in
02:33his latest Substack post and you know he's always been a little skeptical about this.
02:36But he talks about this idea of he doesn't think that the consumer appetite for pain that is for AI
02:44will be as high as some people thinks.
02:46He's also concerned of course about the cost of the corporate build out of this as well and and he
02:51is drawing a lot of comparisons as you would expect to the dot com bubble.
02:55I do want to get your thoughts on that. Well Michael Burry doesn't run a firm and he doesn't actually
03:00run that much money.
03:01My personal accounts that we manage for my own personal clients is three times bigger than his fund.
03:06So you know let's keep Michael Burry in perspective. But what he's missing is there's two levels from the consumer
03:12perspective.
03:13There is a price like what they'll pay for Netflix and what they'll pay for Chad or Gemini and maybe
03:18that's 20 or 30 or 40 dollars a month.
03:20But that's not where the big money is. The big money is in corporate and enterprise.
03:23So my company right now is building on quad and we're building a whole new presentation and portfolio system through
03:31AI so that we can automate all the processes our advisors do.
03:35And we've been building on this now for several weeks and it just gets better and better.
03:39And it's like super cool what we're building and it's amazing that we can build it like with a person
03:47who doesn't even know how to program.
03:49And so you know this is the beginning and companies like mine will spend thousands of dollars a month.
03:55No problem for AI. It's worth it. The efficiency gains that we're already getting from AI are amazing.
04:02So for us I think it'll at least increase our productivity like by you know two to three times.
04:10And the way I see it right now irrelevant of like the gains that we get from customer service happiness
04:16and things like that.
04:17But just on financial level that every dollar we invest in AI will probably have a 10 times to 20
04:23times return.
04:24So it's just we'll invest. We'll just keep investing. I mean you've you've talked about this a lot about the
04:30opportunities out there.
04:31I am curious about just the widening aperture of investing in this space.
04:35And let's just stay in the public markets for right now. I am curious that looking beyond the obvious names
04:41you know the invidious and
04:42alphabets and Microsoft of the world are there names that you're looking at now that you think might be sort
04:47of that you know own this for the next 10 20 years.
04:50It'll be the next Amazon or the next you know whatever. Well you know I think that's yet to be
04:56determined.
04:57I think there will be companies that are going to come out. That will be the next Amazon or Google.
05:01But that has yet to be determined as people are now starting to really deploy solutions over AI.
05:07I think the big winners have already been determined with you know what we're using whether it be open AI
05:13Gemini or Claude.
05:14And so I think we have three big winners in AI. But I think the real winners behind this that
05:20that we're investing in and you can see it in the multiples of these stocks are the people providing power
05:25because you can't do anything without power in this world.
05:29Whether it's driving an electric vehicle or turn on your heat pump in your house or or or running a
05:34data center it we're in this like massive suck of power and energy.
05:39And that I think is where enormous opportunities lay in companies that we've added to my fund in my GK
05:45fund like bloom energy for example really innovative technology company.
05:49That's providing power to data centers Quanta services another top holding in my fund there's really just power and infrastructure
05:56services because the biggest risk to AI is actually being able to build it.
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