00:00When we're talking about where to invest now, Kevin, I wanted to ask you, where do you see the opportunities
00:06in AI now beyond the normal suspects, and how is that evolving?
00:13Yeah, I mean, there's sort of two ways I think about it.
00:15I mean, the house, through the lens of the house view that we have at Schwab in terms of our
00:19sector ratings, you know, we sort of have this, I guess, almost barbell approach where you can think about in
00:25the hyperscaler world,
00:26we have a favorable rating on communication services, which sort of lives at the center of everything hyperscaler.
00:31But then we've also got a relatively favorable view on health care.
00:35I think that within health care, the other way of answering it is sort of approaching it through the lens
00:40of companies and industries that may not all live sort of in the same industry.
00:44So think about it thematically.
00:46Given this phase we think we're in and this whole cycle, which we call cascade, where a lot of this
00:51technology is now flowing through the economy.
00:53It's not just concentrated in, you know, the data center creators and the chip makers.
00:59You're starting to see a lot more evidence of companies that are using technology to their benefit to, you know,
01:04help with their profit margins,
01:05or if they're really struggling with, you know, higher input costs, which has been more of a struggle for consumer
01:10-facing companies and industrials and, you know, discretionary and staples.
01:14That's where more of the stress has been.
01:16So I think that's kind of a more interesting way to think about how AI becomes a, you know, bigger
01:21beneficiary for the market.
01:23And I sort of make the joke that I think at the end of the day you would just say,
01:26you know, AI stock, and that sort of hits every single stock in the market.
01:30You can kind of, you know, make the joke that everything becomes an AI play because of, you know, whether
01:35they're adopting it or whether they're a creator of the tech.
01:38It just feeds into everything.
01:38Absolutely, yeah.
01:39Yeah, interesting.
01:41I know, Anne, you've been involved in or active in AI for at least 14 years, I know.
01:48Yeah, it's been it.
01:49And you come at it from, I mean, when, Kevin, you're talking about sort of like adopters and, you know,
01:56down the pipe beneficiaries.
01:58And, Anne, I know that you have a focus on sort of the startup, the sort of cutting-edge science
02:04venture end of things.
02:05So from where you focus, where are you seeing the opportunities that we should be, you know, keeping abreast of
02:13and keep our eye on for the future developments in AI?
02:16Well, AI is evolving, and it's actually going into a more human direction.
02:21And that's in terms of the methods through which it actually learns.
02:24And so if you get out there and you go to Silicon Valley, the new term du jour is world
02:29models.
02:29And the idea is the open AIs and the anthropics have been building their models through the rigorous analysis of
02:37text.
02:38And Jan LeCun is one now entrepreneur out there who I've invested behind who said,
02:44look, a four-year-old child without the facility of written language has absorbed more data by the age of
02:52four than the 30 trillion pieces of written text that have trained the models that are about, for example, to
02:57be part of these IPOs.
02:59So why are we not teaching artificial intelligence to learn in the way that human beings do, through sound, through
03:06touch, through visual?
03:08And so one of the things I've done is invest behind this next generation of what is called a world
03:12model.
03:12And I think it's coming.
03:14I think it's going to come really quickly.
03:15What is the name of his company?
03:17AMI.
03:18AMI.
03:18AMI just raised just over a billion dollars at a three and a half billion dollar valuation.
03:23That's where I participated.
03:24So it's, you know, feels like a nosebleed valuation that anything's possible.
03:29And it was the biggest seed round raised by a European startup.
03:33I think you said Bezos was part of that.
03:34Bezos was part of it.
03:36Yep.
03:36Samsung was part of it.
03:37NVIDIA is part of the cap table as well.
03:39So it's really tried to put around it sort of the constellation of strategic capital, not just venture money as
03:45well.
03:45Yeah, fascinating.
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