00:00Let's take companies like OpenAI and Anthropic.
00:03How much of a challenge do Chinese versions like DeepSeek and Moonshot represent to them?
00:10I think they represent a significant challenge, especially if they continue to keep up at the recent levels.
00:19The models trailing them trail anywhere between three and 15 months.
00:25Right now, it's probably six months behind because everyone's pushing on new models.
00:31So what this means is if you were OpenAI or Anthropic, you would have a product you sell for a
00:38very high price that is deeply discounted with an open source version that is equivalent to your best model six
00:50months ago.
00:50So it's like, would you pay $50,000 for a Tesla of this year or a, you know, $15,000
01:00Tesla that's six months old?
01:02Obviously, the second is a strong value proposition.
01:07So in the long run, do you think that the Chinese companies will be the ones which are more likely
01:12to make a profit?
01:14No, no, I do not.
01:16I think the American companies will make more money.
01:19So Anthropic and OpenAI have built the iPhone.
01:25The Chinese companies are more like the way Google felt.
01:30It's like, okay, you got the best product.
01:33We'll build something that's almost as good and sell it very cheaply.
01:36In this case, very, very low cost, sometimes near zero, and just win a larger share.
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