00:00Last week we spent a lot of time thinking about pacing the frontier, whether that had to happen.
00:03This week we seem to be entirely much more positive about the AI narrative.
00:08Is that because actually it's not really about the frontier, the valuations aren't about the frontier,
00:13they're about inference and they're about companies using AI to drive productivity and profit?
00:18Yes, I think it is a tug of war between how to regulate the worries around
00:25what does this technology mean for humanity and at the same time continuing to participate in the earnings benefits of
00:34this technology.
00:35We're moving to the first kind of iteration of AI for consumers, AI to solve everyday problems.
00:42And if you look at some of the social media use cases of the Muse agent, it's to rebook hotels
00:47or do online shopping.
00:50And this moves away from this productivity or coding kind of based consumer chain, right?
00:56At this minute, the question was whether training is going to slow down and inference is going to increase.
01:01But again, as these new models are coming out, it seems that even training is not going to slow down
01:05aggressively in the near term.
01:06So I think the demand for GPUs, the demand for CPUs, the demand for memory will likely continue.
01:13This is kind of practical.
01:14News is about the practical solutions that will kind of you become my assistant.
01:18It's actually all about shopping.
01:21Ultimately, I think you probably are right.
01:24Earlier this year, we see some AI agents coming along, the cloud co-work, and now we are coming to
01:30Muse, right?
01:31So there are some stocks to benefit and to lose out.
01:34Do you want a position for a slowdown in CapEx on AI?
01:37Fundamentally, you still see a positive growth trajectory for CapEx.
01:41Maybe it's not double digits forever and absolutely shouldn't be.
01:45But, you know, given that that medium-term outlook is good, other than that bit of turbulence, we don't think
01:50it really changes the trajectory.
01:51We're seeing just this robust consumer demand that's really adding to that one question around demand.
01:57But we're seeing this rapid adoption.
01:59So that suggests more inference, more compute, and more semiconductors at the end of the day.
02:04At a time when the market is already exceptionally tight, we think about how much chips go into data centers.
02:10And I think that's really going to continue to provide this pillar of support.
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