Speaker 1: I got Jenny Horne here with me in the studio, host of NextGen, talks more about the details around the AI situation. As Kev teased there, Mr. Dan Ives out there pounding the bull drum, right?

Speaker 2: Yeah, so I agree with him, okay, so because I think that this is massively an overreaction by markets, but I'll let Dan Ives' tweets sort of speak for themselves. He did say that DeepSeek is the competitive LLM model for consumer use cases, launching broader AI infrastructures, which is a whole other ballgame, and nothing with DeepSeek makes them believe anything different. It's about AGI for big tech and DeepSeek's noise. Also no U.S. tech really uses this tech, so he said it could be a buying opportunity, and that no U.S. Global 2000 is going to use a Chinese startup in terms of launching their AI infrastructure and use cases. At the end of the day, there is only one chip company in the world launching autonomous robotics and broader AI use cases, and that's Nvidia. And at this point, this is only a more golden opportunity to buy Nvidia shares. I agree with him. I've heard of DeepSeek before, just because I think that the world of AI models is quite interesting. LLM is exactly the world in which OpenAI first unveiled a lot of its offerings, and that was hugely, I mean, obviously popular when OpenAI first came to market. But this is to me very similar. This is like, sure, I know that the thinking is that we could then see major corporations not shell out the same degree of cash on Nvidia's very costly GPUs, but this is a large language model. This is not to me the same, like, wide-reaching AI player that the news is making it seem this morning.

Speaker 1: Well, it's also a cheaper alternative, too, that's very powerful. It's just kind of what China does right now. So to think that something like this wasn't baked in, I think, just kind of tells us sort of how lofty and purist and confident, possibly kind of arrogant maybe our U.S.-centric views were about how much, like, there's endless demand and no competition for it. I mean, a lot of the story of the last two to three years has been just the U.S. economy just crushing everybody around the world. So to some extent, this is kind of like a little wake-up. I mean, it's kind of what they did with their iPhones or with their phones, right? They have cheaper competitors. People over time in China have gravitated away from the iPhone, and the service here is pretty cheap. So for the computing power and the ability it's got, you know, one of the things I think that has kept everyday folks kind of off some of the AI stuff is it got kind of expensive to use it, you know?

Speaker 2: That's true. And I would say the same can be said about the Chinese EV market also. They're able to churn out, I mean, like decent vehicles and cheap vehicles, and like right now we're not seeing any of our domestic games really.

Speaker 1: They're the dupe kings of the world, right? Isn't that what China does? They're dupes. They make dupes of things. Yeah, they do.

Speaker 2: This is a pretty good dupe. I mean, it's like TiVo is like the dupe of Amazon now. It's like one of the most successful. But OK, as far as like large language models specifically, I do feel like this is such a small still portion of AI. And I guess, hey, I followed like the ongoing tech war between us and China since really 2017. I guess I'm curious if this will be as wide-reachingly welcomed into the U.S. economy based on the fact that right now we're not even keeping TikTok for longer than 75 days. I mean, I just wonder the implications of like the government, if we're claiming national security, wouldn't this be a security concern? I mean, it'd be the same principles that are now being applied to TikTok.

Speaker 1: Pretty much.

Speaker 2: I'm skeptic on this.

Speaker 1: No, totally. Pretty much. I was reading apparently that like you like don't get results for Tiananmen Square or something if you search. But I don't know. Who knows?

Speaker 2: But the affordability component is huge. I think that you make a great point. I just I don't know if there's necessarily threatens Nvidia's business models, because to me, they can coexist in their own right.

Speaker 1: I think Dan Ives has got a very good point, too, which is the same point you're making, which is why TikTok, you know, went through what it did and why we're always levying different tariffs or different, you know, regulatory measures against the product competition. Is it a lot of I don't think any U.S. company is going to want to rely on this like now the rest of the world, you know, very possible. Sure. And like for your everyday person, if it's cheaper, they may not care where it comes from. They can get the job done if they can get their homework done for them. But like for big companies from a business enterprise standpoint, I don't think they're going to build anything on top of their architecture.

Speaker 2: I agree.

Speaker 1: I mean, it's too much risk.

Speaker 2: And I also think like how many people right now, like what is the total just one market for the average consumer that's signing up for an LLM? I would imagine it's bigger than maybe I even think. But it's not like this is seeing like the mass widespread adoption or open AI would be frankly doing a lot better. And I know that, again, this has more wide reaching implications on AI. But to me, it still seems fairly niche. There's a lot of like different components of the AI trade that we talk about so heavily. Sure. This is one area that I'm not saying that there's not sure a surging demand for it, but it's just hard for me to imagine that like the everyday consumer is seeking out the most affordable LLM. I mean, I feel like that's a very niche tech.

Speaker 1: I kind of will be.

Speaker 2: Well, now I definitely will be.

Speaker 1: I can only get like 10 images on Bing or whatever. And then you're like done. You know, I get like a couple of searches on Chad GPT and you're done. So you got to pay up.

Speaker 2: That's true. Right now, there's no loyalty to one. Everyone's just trying to find the cheapest and like the way you can use as much as you can before you hit like the end of your free trial.

Speaker 1: I did see it might have been Nate Silver that tweeted out this weekend that people who are still like dismissing what it does and think it's not a big deal are definitely like totally missing the point. Like if you're not using these services in some way, then like I'm not really sure what you're doing. No matter what you do, it has some utility for you. And I have to be in agreement with that.

Speaker 2: I do have to be in agreement with that. But I also think that we are of the way of thinking of like we care to understand. I think there's also a lot of people. I'm thinking like my parents age plus that still make up a huge portion of the population that I just can't imagine going on deep seek. But hey, maybe I'll be wrong.

Speaker 1: They're going to care more about inflation data this week. They're going to care more about Fed stuff. That's fair. Thanks, Jenny. OK, Dan Ives, of course, sounding the buy the dip bat signal, the Ives signal for bulls. Thanks, Dan. Bye.