"Nvidia is going to have better networking than you. They're going to have better uh HPM. They're going to have better process node. They're going to come to market faster. They're going to be able to ..."

"super excited to have you here today. Awesome. Thank you. Uh happy to talk about my favorite topics. Amazing. Well, maybe let's start with GP5. You know, we just had the um some of the researchers fro..."

"of user you are, right? Um, and so like right if you're just using GPD5 and before you were, you know, $20 or $200 a month subscriber, um, you no longer have access to 4.5, which in my opinion is stil..."

"you think about you know what what is this curve of intelligence right it's like the more compute you spend the better the model gets um and that's whether it's a bigger model uh which GPD5 isn't righ..."

"less compute going into uh a power user's average query than before. But isn't it even more interesting? OpenAI can now control how much comput wants to allocate to you, right? if if if we're in a hig..."

"uh if they need to right and it's like I think I think the router points to the future of open eye from a business right like you can look at sort of the model companies right anthropic is fully focus..."

"enough it'll be able to you know contact all the lawyers in the area and um you know figure out what their results are and maybe search their like court filings and whatever right and and and book the..."

"longer where cost alone is is is that what we're seeing here or I mean I think definitely right like OpenAI said they doubled their rate limits for uh you know c for big amounts of uh users they've th..."

"account. Is that the future then? Um I mean but it's it's clear like people are taking advantage of the negative gross margin like sort of uh you know subscriptions that are offered. Um you know I thi..."

"best possible UI to enable user to give feedback. And I think there's value in that. So, I think there's a certain amount of stickiness in there, right? So, what are all the different tools like in te..."

"Before we leave open, I want to ask a broad question which is if someone was was sitting here and saying, "Hey, Dylan, I'll listen to anything you you tell me to do. Any advice you have as long as it ..."

"questions around this. I I want to shift to Nvidia. Uh Nvidia is having a monster year. They're up almost 70%. What are the possible paths from here? How do you how do you see it playing out? Um depen..."

"third of it is like ads right um whether it be bite dance 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..."

"development right we know we can easily get about 15% more productivity out of a I don't think that's right I think it's way higher no no that we with a with a straight like I talked to a lot of enter..."

"some like reality in that of course but you know ignores that like infrastructure spend today is accounting for five years of revenue not like one and the revenue looks like this not like flatline but..."

"source models like continuing to drive it down. It's like the value capture is just harder and harder and harder for these companies cuz they're making, you know, 50% gross margin on an inference if t..."

"like like where it's not clear from, you know, if you have a spreadsheet, you know, and you're basing it on real business that you should actually spend this much. But people will because they believe..."

"and there's all these um open source software libraries from you know Nvidia and and China and it makes the deployment costs like rock bottom then potentially hear me out here if if Google's TPU is is..."

"for a long period of time. Um, and historically, no pun intended, software has eaten the world in most markets, right? I mean like if you look at uh early networking days Cisco was the most valuable c..."

"right is that correct I think I talked to um one of the team members maybe maybe Rajco or someone about like why you guys don't didn't invest in like you know like a together or like a fireworks and s..."

"which is you know why why right like why would you do this? Shifting gears what about the the silicon startups? Uh what's what's your take on those? I mean there's there's a ton of capital flowing in ..."

"that are like Yeah. Yeah. Yeah. That's fair. Um and then and then and then there's the old guard which continues to raise money, right? Like Grock and Surris and and Zanova and and Tenstor and so on a..."

"effort in terms of team size. Um, all in the end, like, hey, I make a 75% gross margin as Nvidia. Um, AMD sells their GPUs for 50% gross margin. Um, and they have a hard time out engineering Nvidia an..."

"focusing on that to even prove out if it's worthwhile or not right um on a hardware side on a software side on a model side and so like you look at like Grocery Samanova um they all like sort of overi..."

"constantly because of what because of what um works best on Nvidia and you see that with you know whether it be what DeepS's doing or Alibaba's doing or what the labs are doing internally um and you e..."

"copper cables, everything. They're going to have better cost efficiency. So, you have to be like 5x better. But, but it to be fair, if if somebody had a viable competitor, which would even be marginal..."

"shift, right? Because they're like, "Oh, what's the next generation of TPU and GPU look like? Okay, let's optimize for that." And the research path is, you know, like great, like yes, neuromorphic com..."

"because you have to be 5x there's a mode. uh because the supply chain stuff means that 5x actually turns into a 2 and a halfx and then Nvidia can compress their margin a little bit if you're actually ..."

"interesting, which is it's a big challenge in America, right? like um there have been there have been companies that were like they wouldn't they they've like you know Jensen keeps saying he couldn't ..."

"moment they decide to um but there's these like there's like competing interests, right? Like because they want Huawei to be better than Nvidia. Yeah. And then this is how Nvidia argued to the adminis..."

"Um I don't think so. I think I think again like there's a lot of like we what we see is that like even with H20 being sold to China in into China um and and and future versions of the chip the H20e an..."

"capital if they wanted to. um they're subsidizing the semiconductor industry to the tune of like $150 $200 billion a year uh through SOE through capex that's not generating revenue etc. So, it's not l..."

"infrastructure really fast, right? Um and and their software is nice, I think, but like a lot of their customers are bare metal, right? Just just replace the GPUs whenever they're broken and network a..."

"They need the power, right? And it's like um all the hyperscalers have like said screw off to my sustainability pledges because they need power as fast as possible, right? um they're, you know, they'r..."

"data center and work on the wiring within the data center and all this other stuff uh the transmission stuff and your pay is up like 2x now uh versus what it was just a few years ago. This labor probl..."

"at the end be every all data needs to be next to a nuclear reactor or lots of solar you know next to deep level like deep sea water that we use for cooling or something like that or what's um I think ..."

"again like the cost of power like you go look at like these deals people are signing they're still signing like even though the price has skyrocketed uh from like a few cents a kilowatt hour for these..."

"they were sitting idle, it's not worth it. Right. Just by like bypassing the grid, bypassing anything to do with interconnect, anything to do with public utilities. Exactly. Exactly. What's your take ..."

"you want want them to be competitive? I think the process of splitting it would take so much executive time and so much executive effort that you would have been bankrupt by then, right? And that's th..."

"people or half the people working on it. And so like Lip Boutan to fix Intel needs to go into both the design company and lay off a shitload of people but like keep all the good people um and make sur..."

"right? Uh which some could argue you need to lay off like 30% of the company anyways, but um there's a lot of bad things that happen if that happens, right? Um and they need to spend a lot more on bui..."

"are you going to do with that? Um, I think I think there's something moving into the infrastructure layer much more um that they they could do if he really wants to be the king of the world, right? Uh..."

"like now I don't get as much in. I met some other people, right? But it's like you know um I think they could be a lot more aggressive in many ways across the company. They don't have to be, right? Bu..."

"ship product better, right? Um Zuck, um I think I think Zuck, you know, it remains to be seen what goes on with super intelligence, but like they're trying to move super fast with the data centers. Uh..."

"of their core IP every time they launch something is kind of mid, right? Um, you know, Metal Reality Labs is doing well, but I think they should like go more explicit. Like have a Chad GPT competitor,..."

"it, right? IDFA like they shut down ads to or data sharing to Meta, but Meta made better models and now they have way more data and way more power over the user than they ever did before kind of it wa..."

"company. Um, but like he's he's losing a lot of talent and and axing a lot of good projects. Uh, but Elon has a is a magnet to amazing talent and building stuff. So, I won't bet against him, but it se..."