The Exchanges

Q Uh, it just so happens that there's some big news, just as we're, as we're having you, NVIDIA, uh, announcing a five billion dollar investment in Intel, and them teaming up to jointly develop custom data centers and busy products. What do you think about the collaboration?

A I think, I think it's hilarious that, like, NVIDIA could invest, it gets announced, and their investment's already up 30%. Five million dollar investment, two billion dollar profit already, right? Like, I think it's fun, because, uh, they need their customers to really, uh, have big buy-in. So when their customer, potential customers, uh, buy-in and commit to certain types of products, it makes a lot of sense, right? And it's kind of, uh, funny in a way, because in the past, um, There was this whole, like, thing around how Intel was sued for being anti-competitive with their chipsets, and NVIDIA actually got, like, a settlement from NVIDIA, uh, Intel, right, way back when, when, like, the graphics were separate from the GPU, and the graphics were really put on the chipset, which had, like, all this other I.O., um, like USB and all this stuff. Um, So, so it's kind of a, a, a funny like turn of events that now Intel is going to make like a chiplet and package it alongside a chiplet from, from NVIDIA, and then that's like a PC product, right? So, you know, it's kind of poetic that everything's gone full circle and Intel's sort of crawling to NVIDIA, but actually it might just be the best like device, right? Um, I don't want an ARM laptop because it can't do a lot of things. And so an x-ay six laptop with NVIDIA graphics fully integrated would be probably the best product in the ma…

AI assessment note: “an x-ay six laptop with NVIDIA graphics fully integrated would be probably the best product”

Q Before we leave OpenAI, I would ask a broad question, which is if someone was sitting here and saying, Hey, Dylan, I'll listen to anything you tell me to do any advice you have, as long as it makes OpenAI more valuable, what would you tell him?

A I would say, like, immediately launch a, uh, a method for you to input your credit card into ChatGPT and agree that for anything it, like, agentically does for you, it'll take XCUT and then launch that product because, uh, where, where it does shopping, right? Because, like, we know, everyone knows that, like, Anthropic and OpenAI and all the other labs are buying RL environments of Amazon and of, like, Shopify and of Etsy and of all the different ways to shop on the internet. Of airline websites, right? Now, just like, hey, integrate my calendar. I wanna, I wanna fly to there on Thursday. Make sure I don't miss a meeting. Cool. Book. Right? Like, do, do that integration, like, super well. Know my preferences on what, whether I like aisle or window, all this stuff, right? And just take a take rate. Like, I think like, this will make them so much money the moment they launch it. And I, I think they're working on it already, but like, I'd like to hear how he thinks about it. Uh, cause he's shifted his tone massively on like ads over the last, Six months. Right. He used to be like, no way. And now he's like, uh, maybe, you know, uh, there's a way to do it without, you know, harming the user. And I think this is, this is how you monetize the free user. Right. So I think that's probably what I'd tell him slash ask him about, like a whole line of questions around this.

AI assessment note: “I would say, like, immediately launch a, uh, a method for you to input your credit card”

Q So what should he do with the, or what should guide his, ah?

A I mean, I think like, you know, like there is the argument he should invest in data centers and only the data center layer, not the, not the, not what goes in the data center so that more people build data centers. And then if the market demand continues to grow up, data centers in power are not the issue, right? Invest in data centers in power. Um, I, I've said that to them, they should invest in data centers in power, not in the cloud layer, because the cloud layer is, is, is, is quite, Commoditize, but quite, um, it's, it's commoditize your compliment, right? Is the whole phrase. And I won't say being a cloud is commoditized, but it's certainly like you have a lot of competitors who are decent now. Um, And, and you've, you've educated the commercial real estate and other, you know, infrastructure investment firms into going into AI infra as well. So, like, I don't think it's the cloud layer that you invest in, right? Um, do you invest in data centers and energy? Yeah. Uh, do you invest in, because that's the bottleneck for your growth really, um, is, is A, well, how much people want to spend and can spend, and B, the ability to actually put them in data centers. Um, And then like robotics and like, I think there's like areas he could invest in, but nothing requires three hundred billion dollars of capital. So what do you, what do you do with the capital? Like, I, I really, I…

AI assessment note: “they should invest in data centers in power, not in the cloud layer”

Q I want to shift to Nvidia. Uh, it is having a monster year. They're up almost, almost. What are the possible paths from here? How do you see, how do you see it playing out?

A Um, depends like how, how piled you are on like the continued growth, but like, I think, I think you guys have a good vantage point. We have a good vantage point of how fast revenue is growing for a lot of these companies, especially the code companies, but, but even many other applications. Um, I think we can clearly see, uh, the demand side is, is accelerating, right? Um, and, and then if you look at the training side, I think the, the race is on, um, You know, Meta's, Meta's upping hugely. Uh, Google's upping hugely. Um, you know, if you, if you just look at, like, again, just OpenAI and Anthropic and the compute that they have and are getting this year, uh, from Google and Amazon for Anthropic and from Microsoft, CoreWeave, Oracle, uh, for OpenAI, 30% of the chips are going to them, just those two companies. Um, but that's actually, like, okay, well, like, 70% of the stuff, like, Who's making off? Well, one third of it is like ads, right? Um, whether it be ByteDance or, uh, Meta or many of the other people who are doing ads. So then it's still like, okay, well, where are the rest of these one third of the chips coming from? Well, they're like mostly uneconomic providers who I don't think it's like an obvious bet that they're going to keep growing, um, you know, keep raising bigger and bigger rounds. So what happens there? Um, I think, I think with the, you know, we, we talk…

AI assessment note: “I think we can clearly see, uh, the demand side is, is accelerating”

Q So what should he do with the, or what should guide his, ah?

A I mean, I think like, you know, like there is the argument he should invest in data centers and only the data center layer, not the, not the, not what goes in the data center so that more people build data centers. And then if the market demand continues to grow up, data centers in power are not the issue, right? Invest in data centers in power. Um, I, I've said that to them, they should invest in data centers in power, not in the cloud layer, because the cloud layer is, is, is, is quite, Commoditize, but quite, um, it's, it's commoditize your compliment, right? Is the whole phrase. And I won't say being a cloud is commoditized, but it's certainly like you have a lot of competitors who are decent now. Um, And, and you've, you've educated the commercial real estate and other, you know, infrastructure investment firms into going into AI infra as well. So, like, I don't think it's the cloud layer that you invest in, right? Um, do you invest in data centers and energy? Yeah. Uh, do you invest in, because that's the bottleneck for your growth really, um, is, is A, well, how much people want to spend and can spend, and B, the ability to actually put them in data centers. Um, And then like robotics and like, I think there's like areas he could invest in, but nothing requires three hundred billion dollars of capital. So what do you, what do you do with the capital? Like, I, I really, I…

AI assessment note: “nothing requires three hundred billion dollars of capital. So what do you, what do you do”