Why Nvidia is rooting for Chinese AI

[00:01] excellent. Open open source models that are excellent should be used. And so the market's misunderstood the impact of Deep Seek the first time. It's misunderstood Yeah, it's it's misunderstood the impact

[00:15] of Kim E again this time. I think first of all, with great AI open models, it's great for the whole industry. Obviously, when there's more if there's great AI, even if it's open, wherever it comes from,

[00:28] there will be more use. Whenever there's more use, you'll have to sell a lot more more data centers, we'll have more services, the technology will diffuse into more industries. And so starting point is great models lead to

[00:43] starting point is great models lead to great use, which leads to great growth. that cuz a couple things stand out to me, Dan. One, >> [laughter] >> of AI.

[00:58] Two, you know, Nvidia has stakes in a lot of the companies that will be competing with the open source models out there. Um so in that way it's not necessarily in their financial interest. And three, he doesn't even touch and

[01:10] to be fair. He doesn't even touch the Chinese security concerns about these >> Yeah, I think one of the things to keep in mind with these open open models is they're they're open weights so that you can you can make certain adjustments but

[01:24] not, you know, fully kind of go in and and kind of tool with it on your own. You can customize it to a degree. What What are the things that's noteworthy about open source software is that so many people, because it's open

[01:37] source, usually are messing with it that they're addressing cybersecurity issues on the spot. So, you know, that's what makes open source software so kind of secure. It seems stupid because you're like,

[01:52] well, everybody has access to it, why would it be safe? But it's because everybody has access to it that it is. They're all, you know, trying to ensure that it's it's not, you know, something that people can can break. Um when it

[02:05] comes to what Jensen said uh on the, you know, uh know, uh deep seek versus Kimmy uh K3 is, you is it if it becomes easier to run models,

[02:20] more people will buy our our hardware because they'll want to run more models. So that thinking is, "Okay, we have more companies that can afford to run models they're going to need to power that somehow, and they'll use our soft

[02:36] hardware." The other flip side of that is that uh is the more hardware you put behind a model, the better the responses are. So in in other words, the the, you know,

[02:50] the the bigger the engine, the faster the car goes. Uh that's what what he's regularly applying to these kind of AI models as well. So, you know, I don't I don't see this as as necessarily a negative for Nvidia, um but, you know, I

[03:06] think it it kind of leads to the question of how far into this argument can he go because of the geopolitical implications, you know, Nvidia's trying to get back on sale in China. China's saying, "Maybe some companies will take

[03:19] this." The US has, you know, banned certain chips, then kind of flipped on that. And so, it's it's interesting to see him kind of go out and and talk crucial to his business, but also, you know, could raise uh could be like

[03:34] Washington. >> Yeah.