Managing Director and Senior Equity Research Analyst at Wedbush Securities Dan Ives speaks to CGTN Europe about Baidu, OpenAI, Nvidia and the artificial intelligence boom.
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00:00 The AI gold rush has begun.
00:02 I mean, we saw with Microsoft, of course,
00:04 we'll see what the godfather of AI,
00:07 Jen's in a video later, you look at Biot, that was strong.
00:10 And that's gonna be key to the growth areas
00:13 that you see in the 2024, investors like what they see.
00:17 - So we've seen this big upheaval, haven't we,
00:19 in the past couple of days in the world of AI,
00:21 moves at the top of OpenAI,
00:23 talk with their staff,
00:25 moving from one company to another.
00:27 You called it the start of the gold rush.
00:29 Do you think we are at the start of a new era
00:31 for artificial intelligence?
00:33 - I think this is the biggest tech transformation
00:36 that we've seen in 30 years.
00:38 I call it a 1995 moment, star of the internet,
00:41 in terms of what this is gonna be.
00:44 We think about trillion dollars of spend over the next decade
00:48 but when you look at OpenAI,
00:49 when you have a circus show, a clown show on that board,
00:54 that's why ultimately Microsoft had to come in
00:57 and ultimately sweep up, make sure Altman, Brockman,
01:00 everyone was in Microsoft,
01:01 'cause you essentially have a four person board
01:05 that's destroyed a 90 billion dollar company.
01:08 - So are we talking effectively about a battle
01:10 between monetizing AI and perhaps regulating it more closely
01:14 keeping ethics in mind?
01:15 - I mean, look, I think that's there,
01:18 but realistically, this is just the JV board.
01:21 These are essentially eight year olds playing checkers.
01:24 Maybe they got their feelings hurt,
01:26 some political back and forth thing like Altman
01:29 and then the Dell is the grand master chess wizard.
01:32 He comes in and resolve the whole situation.
01:35 Now this board, they're gonna face massive legal issues
01:40 as what they've essentially done here
01:42 will be a black eye in Silicon Valley
01:45 for probably decades to come.
01:47 - We're not just talking about Silicon Valley though,
01:48 are we?
01:49 I mean, there's lots of companies operating in the AI space
01:52 with so many making strides.
01:54 Do you think more competition will equal more progress?
01:58 - Oh yeah, I mean, I think this is,
02:01 I'll call it a gold rush,
02:02 but 2024, it's gonna be a massive inflection.
02:06 Use cases are exploding across the board.
02:09 And that's why when you see the godfather of AI,
02:13 Jensen in a video later today,
02:15 that's what they're gonna talk about.
02:17 It's all about use cases.
02:18 And I believe this is why the new tech bull market,
02:22 in our opinion, has already begun being led by AI.
02:27 - Let's talk about Nvidia.
02:28 You mentioned them another great set of results
02:31 expected later.
02:33 Now that we're seeing US-China relations
02:35 perhaps hit a more positive note,
02:37 how big do you think the company can get?
02:40 - I think it's gonna be a jaw dropper
02:43 relative to what we see from Nvidia.
02:45 I mean, look, these have been guidance numbers.
02:47 They're guidance heard around the world
02:50 because it really just shows
02:51 they're the only game in town when it comes to chips.
02:55 A little softening now, the China-US,
02:58 that's bullish for Nvidia.
03:00 - So where do you think they will expand into?
03:05 How much do you think we'll be seeing Nvidia products
03:07 in everything we use?
03:09 - I think, I look there right now, there's no other chips.
03:14 It's all led by Nvidia.
03:16 That's why even on the China side,
03:18 that's been a balancing act
03:19 that they're ultimately gonna benefit from.
03:22 And I think this is across consumer, across enterprise.
03:27 And that's essentially why they are the Don Corleone of AI.
03:31 - Dan, good to speak to you.
03:33 Thank you for joining us.
03:34 That's Dan Ives from Wedbush Securities.