WEBVTT 00:00:00.000 --> 00:00:03.080 The entire AI industry got tossed on its fucking 00:00:03.080 --> 00:00:05.960 head this week. A Chinese company released a 00:00:05.960 --> 00:00:10.099 new AI model this week and it appears to be as 00:00:10.099 --> 00:00:13.640 powerful as anything the US AI industry has come 00:00:13.640 --> 00:00:16.660 up with so far and they've done it at a small 00:00:16.660 --> 00:00:18.839 fraction of the computing and, more importantly, 00:00:19.460 --> 00:00:22.500 the energy cost. This sent AI related stocks, 00:00:22.699 --> 00:00:24.480 most specifically Nvidia and a couple of energy 00:00:24.480 --> 00:00:28.829 stocks, just crashing on Monday. This happened 00:00:28.829 --> 00:00:31.809 just after the Trump administration announced 00:00:31.809 --> 00:00:34.490 Project Stargate, which is a $500 billion joint 00:00:34.490 --> 00:00:37.149 venture, to build a whole bunch of AI infrastructure 00:00:37.149 --> 00:00:39.829 that now they're starting to figure out they 00:00:39.829 --> 00:00:44.109 may not need. My question is, is this the greatest 00:00:44.109 --> 00:00:46.689 troll of the American tech industry by China 00:00:46.689 --> 00:00:51.170 ever? Or what do we make of not only the timing, 00:00:51.789 --> 00:00:56.439 but what this could mean with how efficient this 00:00:56.439 --> 00:01:03.640 AI model is supposed to be. Well, I will also 00:01:03.640 --> 00:01:09.459 say that. They were also able to supposedly there's 00:01:09.459 --> 00:01:11.780 a lot of question behind this, but supposedly 00:01:11.780 --> 00:01:14.900 they were able to develop this in like the course 00:01:14.900 --> 00:01:16.859 of I want to say like two months or something 00:01:16.859 --> 00:01:22.000 like in insane like span of time. Yeah. And then 00:01:22.000 --> 00:01:26.219 also a lot cheaper than. They know a lot of the 00:01:26.219 --> 00:01:28.519 American OpenAI or Meta or anybody who's working 00:01:28.519 --> 00:01:31.319 on it. Yeah. Yeah. Which honestly like kind of 00:01:31.319 --> 00:01:34.319 makes sense because like as soon as one person 00:01:34.319 --> 00:01:36.379 kind of paves the way like others are going to 00:01:36.379 --> 00:01:39.519 find like cheaper ways to do it. But and the 00:01:39.519 --> 00:01:41.340 other reason I think that everybody kind of got 00:01:41.340 --> 00:01:44.219 caught off guard is so that the H100 chip that 00:01:44.219 --> 00:01:46.819 Nvidia makes, which is why their stock has been 00:01:46.819 --> 00:01:49.739 skyrocketing the last couple of years, is a primary 00:01:49.739 --> 00:01:52.180 driver behind especially chat GPT and open eyes 00:01:52.180 --> 00:01:55.680 work. Those are export controlled to China. So 00:01:55.680 --> 00:01:57.620 China's not supposed to have those. Now we're 00:01:57.620 --> 00:01:59.480 going to come back to that portion of the topic 00:01:59.480 --> 00:02:04.280 later. But supposedly that the big thing is they're 00:02:04.280 --> 00:02:06.400 saying, hey, look, you guys export control this. 00:02:06.459 --> 00:02:08.900 We found a way to do it without it. Right. The 00:02:08.900 --> 00:02:11.639 other interesting thing is they didn't just release 00:02:11.639 --> 00:02:15.759 it. They put it under MIT's open license. Yeah. 00:02:15.780 --> 00:02:18.580 And said, everybody has access to the source 00:02:18.580 --> 00:02:22.340 code. You can do whatever you want with it. Right. 00:02:22.830 --> 00:02:26.629 which is huge. So they made it open source. They 00:02:26.629 --> 00:02:32.930 gave all the code away for free. Yep. And they 00:02:32.930 --> 00:02:35.969 were like, come at us, bro. Right. And they published 00:02:35.969 --> 00:02:39.349 a big technical document outlining how they did 00:02:39.349 --> 00:02:46.810 it. Obviously, Nvidia stock went way, way down. 00:02:47.770 --> 00:02:50.830 As of right now, it's recovered a teeny, teeny 00:02:50.830 --> 00:02:54.280 bit. But starting the week, it was at about one 00:02:54.280 --> 00:02:57.479 hundred and fifty bucks a share. And it's down 00:02:57.479 --> 00:03:02.599 to one twenty four. Oh, no. They lost. They lost 00:03:02.599 --> 00:03:05.039 15 percent in market cap. So they at one point 00:03:05.039 --> 00:03:07.939 had lost six hundred billion dollars this week. 00:03:08.439 --> 00:03:17.340 OK, that's actually. Yeah, that hurts. They gave 00:03:17.340 --> 00:03:22.210 it away for free. Straight. Yeah, free. And that's 00:03:22.210 --> 00:03:32.349 honestly, that's what I love. I so I don't. Coming 00:03:32.349 --> 00:03:35.129 from like the engineering point of view, I must 00:03:35.129 --> 00:03:38.389 say you are engineer. Yeah, I think this is great. 00:03:38.789 --> 00:03:42.370 I love open source stuff. When I was in college 00:03:42.370 --> 00:03:46.150 for my engineering degree, I used open source 00:03:46.150 --> 00:03:50.319 machine learning for my project. for my senior 00:03:50.319 --> 00:03:54.939 design. I, whenever something is open source, 00:03:54.939 --> 00:04:01.319 it kind of feels like, Hey, we are like, we're 00:04:01.319 --> 00:04:04.379 not so much like worried about profits. Like 00:04:04.379 --> 00:04:07.300 we're putting this technology out there to help, 00:04:07.300 --> 00:04:09.639 like, advance the technology. If that kind of 00:04:09.639 --> 00:04:13.370 makes sense. Yeah. Yeah. Like There could be 00:04:13.370 --> 00:04:15.610 some conspiracy theories out there of like, oh, 00:04:15.610 --> 00:04:17.709 they're trying to crash in a video. They're trying 00:04:17.709 --> 00:04:20.709 to crash the US stock market overall, though, 00:04:20.709 --> 00:04:24.930 as an engineer. So far of everything I've read 00:04:24.930 --> 00:04:27.610 and watched, I'm like, this is a good thing, 00:04:27.610 --> 00:04:29.670 like, because here's what's going to happen. 00:04:30.230 --> 00:04:35.449 It's open source. So legit, every single US company 00:04:35.449 --> 00:04:38.569 that's involved in the AI industry is going to 00:04:38.569 --> 00:04:41.170 take their stuff. And in the next, I don't know, 00:04:41.350 --> 00:04:43.730 two or three months going to start using their 00:04:43.730 --> 00:04:47.029 research to advance their own A .I. like this 00:04:47.029 --> 00:04:50.889 is going to move A .I. forward. Like, yes, it's 00:04:50.889 --> 00:04:53.910 going to hurt stocks right now. But in like six 00:04:53.910 --> 00:04:55.709 months from now, like you're going to see some 00:04:55.709 --> 00:05:00.910 sort of leap in A .I. So I agree with you on 00:05:00.910 --> 00:05:03.389 that. And again, the fact that it's open source 00:05:03.389 --> 00:05:10.350 is is huge. Right. The thing that really interests 00:05:10.350 --> 00:05:12.649 me in a couple of ways about this is this. One 00:05:12.649 --> 00:05:15.529 of the big concerns about AI has been everything 00:05:15.529 --> 00:05:17.889 that we've had up to now requires an immense 00:05:17.889 --> 00:05:21.209 amount of power. Yes. All right. Immense amounts 00:05:21.209 --> 00:05:25.870 of energy to make it function. What I like about 00:05:25.870 --> 00:05:29.089 this, in theory, again, all of this grain of 00:05:29.089 --> 00:05:31.129 salt, I think it's going to take months before 00:05:31.129 --> 00:05:34.449 all this is run down. But in theory, this can 00:05:34.449 --> 00:05:39.509 be run on a local server. without the the crazy 00:05:39.509 --> 00:05:41.930 power demands, which, again, was concerning a 00:05:41.930 --> 00:05:43.610 lot of people who were worried about climate 00:05:43.610 --> 00:05:45.250 change and green energy and stuff like that, 00:05:45.269 --> 00:05:48.029 where it's like crap. You need so much energy 00:05:48.029 --> 00:05:51.449 to build this, you know, to do A .I. And now 00:05:51.449 --> 00:05:53.750 they're going and these Chinese guys are going, 00:05:53.750 --> 00:06:02.230 you really don't. Yeah. Like. If this is true, 00:06:02.670 --> 00:06:07.600 if this is legit, real and not a Oh, God, I forgot 00:06:07.600 --> 00:06:10.540 the girl who promised the world that they could 00:06:10.540 --> 00:06:12.860 test for, like, every single disease in the world. 00:06:13.040 --> 00:06:14.259 Oh, yeah, yeah, yeah, yeah, yeah. I know what 00:06:14.259 --> 00:06:18.399 you're talking about. Elizabeth, what was the 00:06:18.399 --> 00:06:20.379 name of her company? I don't remember. I don't 00:06:20.379 --> 00:06:24.000 know. But like, if it's legit, like this is real, 00:06:24.019 --> 00:06:27.279 like this is huge. I, you know, I'll just say 00:06:27.279 --> 00:06:33.500 it. I'm an electrical engineer. I primarily focused 00:06:33.500 --> 00:06:37.360 on power generation. It's not what I'm currently 00:06:37.360 --> 00:06:41.720 doing, but. All my classes are around power generation. 00:06:43.220 --> 00:06:47.420 No, this is huge like power. It's going to be 00:06:47.420 --> 00:06:51.519 one of the it's like the largest. I would say 00:06:51.519 --> 00:06:54.399 issue with electrical engineering right now is 00:06:54.399 --> 00:06:58.759 how do you keep up with the? I don't know ever 00:06:58.759 --> 00:07:03.050 increasing demand of power, you know. And so 00:07:03.050 --> 00:07:05.870 the fact that, like, China was able to find a 00:07:05.870 --> 00:07:10.850 way to do AI with less power is huge to me. I 00:07:10.850 --> 00:07:13.509 love it. I'm like, hell, yeah, let's go. And 00:07:13.509 --> 00:07:17.209 then, like, I read like 60 articles and it's 00:07:17.209 --> 00:07:20.110 like how horrible this is. But I'm like, I don't 00:07:20.110 --> 00:07:22.350 understand why it's bad. A lot of this, I think, 00:07:22.370 --> 00:07:24.870 is a lot of a lot of CNBC, Wall Street Journal 00:07:24.870 --> 00:07:29.470 trying to fluff up. Right. The the U .S. market. 00:07:30.050 --> 00:07:34.819 Yeah. I got to imagine that that Monday morning, 00:07:34.819 --> 00:07:38.060 you know, Sachin Adela and Mark Zucker, all these 00:07:38.060 --> 00:07:41.980 guys were like, crap. Right. And I got to imagine 00:07:41.980 --> 00:07:44.220 they had their engineering teams grabbing the 00:07:44.220 --> 00:07:47.519 source code Monday morning going, you better 00:07:47.519 --> 00:07:49.560 figure out if this is actually working, because 00:07:49.560 --> 00:07:53.459 if it is, we're in, you know, necessity is the 00:07:53.459 --> 00:07:55.160 mother of invention. And it looks like the Chinese 00:07:55.160 --> 00:07:56.959 were like, hey, look, you you expert control 00:07:56.959 --> 00:08:02.230 these chips. You you tried to screw us. But between 00:08:02.230 --> 00:08:04.689 and the thing that I drew in my tick tock when 00:08:04.689 --> 00:08:06.990 I made a tick tock about this the other day was. 00:08:08.170 --> 00:08:11.410 Between the tick tock ban immediately being reversed 00:08:11.410 --> 00:08:13.810 and everything that happened there and then this 00:08:13.810 --> 00:08:16.990 immediately happening, it seems like every time 00:08:16.990 --> 00:08:20.269 the U .S. is like, look at us, look at us. They're 00:08:20.269 --> 00:08:25.649 like the Chinese right now are like. Double birds, 00:08:25.810 --> 00:08:31.370 baby, we got you. And I don't think our leadership 00:08:31.370 --> 00:08:34.970 is currently prepared for what's happening right 00:08:34.970 --> 00:08:38.990 now. I don't think we have the political or social 00:08:38.990 --> 00:08:41.750 will to deal with this. Adam Schiff was like, 00:08:41.830 --> 00:08:43.909 this is our Sputnik moment. I was like, you know 00:08:43.909 --> 00:08:46.389 what? You might be right. But if it is, we're 00:08:46.389 --> 00:08:52.970 screwed. We are screwed. Because if this is our 00:08:52.970 --> 00:08:55.250 Sputnik moment, we don't have the political leadership 00:08:55.250 --> 00:08:59.360 and social leadership to meet the moment. Right. 00:08:59.700 --> 00:09:02.100 You don't have a JFK in there going, we're going 00:09:02.100 --> 00:09:04.139 to go to the moon by the end of the decade. You 00:09:04.139 --> 00:09:12.179 just don't have it. So from a political point 00:09:12.179 --> 00:09:15.059 of view, I do agree with you 100 percent. I do 00:09:15.059 --> 00:09:21.940 agree with you. From an engineering point of 00:09:21.940 --> 00:09:26.659 view. I would say like, yeah, hopefully it is 00:09:26.659 --> 00:09:29.980 our spunk spunk Nick. Right. Like, do you think 00:09:29.980 --> 00:09:34.940 we have? Actually, let me rephrase this a different 00:09:34.940 --> 00:09:38.179 way. Let's presume for a moment that our engineering 00:09:38.179 --> 00:09:40.980 talent is on par or maybe slightly better than 00:09:40.980 --> 00:09:45.779 that of mainland China. Yeah. Do we have the 00:09:45.779 --> 00:09:49.419 situation from a political and social standpoint? 00:09:49.539 --> 00:09:51.460 I talk about the fact that, you know, we're in 00:09:51.460 --> 00:09:54.480 a capitalist society and that changes how you 00:09:54.480 --> 00:09:58.990 run business. Do we have the ability to put that 00:09:58.990 --> 00:10:02.769 engineering talent to work in an efficient manner 00:10:02.769 --> 00:10:05.549 where we can catch up if we are as far behind 00:10:05.549 --> 00:10:12.009 as we may be. This is this is a little tricky. 00:10:14.409 --> 00:10:17.289 Because honestly, like the the engineering side 00:10:17.289 --> 00:10:23.870 of me wants to be like. essentially like fuck 00:10:23.870 --> 00:10:27.450 our political leadership. It has nothing to do 00:10:27.450 --> 00:10:30.509 with it because we're still going to pay these 00:10:30.509 --> 00:10:33.169 people. We got to pay the engineers. You got 00:10:33.169 --> 00:10:38.529 to get them to do the work. But however, I will 00:10:38.529 --> 00:10:48.450 say, though, engineers. I'm trying to figure 00:10:48.450 --> 00:10:52.649 out how to phrase this. I, so I used to be asked 00:10:52.649 --> 00:10:56.470 like, Hey, is engineering hard? And I would say, 00:10:56.830 --> 00:10:59.870 no, engineering is not hard. Anyone can be an 00:10:59.870 --> 00:11:02.149 engineer like Alex. You could be an engineer. 00:11:02.389 --> 00:11:05.889 Uh, your wife could be an engineer. Um, anyone 00:11:05.889 --> 00:11:08.570 can be an engineer. The thing about engineers 00:11:08.570 --> 00:11:14.409 though, is their dedication. So you have to put 00:11:14.409 --> 00:11:19.129 everything aside. And you have to find a solution 00:11:19.129 --> 00:11:25.610 period point blank. So There were there were 00:11:25.610 --> 00:11:28.190 days where you essentially you have to say there's 00:11:28.190 --> 00:11:34.330 a problem problem a whatever I'm not going to 00:11:34.330 --> 00:11:38.970 go to sleep tonight until I solve it period and 00:11:38.970 --> 00:11:41.409 With that you have to tell your friends like 00:11:41.409 --> 00:11:43.850 hey, I can't I can't talk right now. I can't 00:11:43.850 --> 00:11:49.220 hang out. I have to figure this out There were 00:11:49.220 --> 00:11:53.659 many nights which. And again, you have to you 00:11:53.659 --> 00:11:58.340 kind of make a trade off of like. You know, I 00:11:58.340 --> 00:12:00.960 will do whatever it takes to solve this problem. 00:12:01.379 --> 00:12:07.059 I. There were many nights where I had no sleep 00:12:07.059 --> 00:12:09.559 and I stayed awake from chocolate chip cookies 00:12:09.559 --> 00:12:14.000 and monster energy drinks. Keeping myself awake. 00:12:14.440 --> 00:12:18.460 I went like two days with no sleep, literally 00:12:18.460 --> 00:12:20.720 just trying to figure stuff out. And I think 00:12:20.720 --> 00:12:25.039 like that, that's engineering is not hard, but 00:12:25.039 --> 00:12:28.279 most people do not have the dedication to do 00:12:28.279 --> 00:12:30.519 that. Most people want to go to college to party. 00:12:30.700 --> 00:12:38.299 Most people will give up after a while. And honestly, 00:12:38.440 --> 00:12:41.740 like my, my father like passed away while I was 00:12:41.740 --> 00:12:45.320 in college. I took one day. Away from college 00:12:45.320 --> 00:12:48.200 till I deal with that and then was like back 00:12:48.200 --> 00:12:51.279 to college like you have to have that mindset 00:12:51.279 --> 00:12:54.960 of like no matter what comes up. I do not care. 00:12:55.000 --> 00:12:59.000 I do not care if the world's on fire. I don't 00:12:59.000 --> 00:13:02.419 care if Elon Musk deploys a Death Star into outer 00:13:02.419 --> 00:13:05.659 space. I am going to sit here. I'm going to figure 00:13:05.659 --> 00:13:08.919 it out. I'm going to find a way and kind of tying 00:13:08.919 --> 00:13:14.409 this back to your question Alex. That kind of 00:13:14.409 --> 00:13:17.990 mindset and there's people that take it way more 00:13:17.990 --> 00:13:20.690 like to the excrete to the extreme than I do 00:13:20.690 --> 00:13:23.970 I don't consider myself like some sort of genius 00:13:23.970 --> 00:13:27.789 You know person there's there's way like smarter 00:13:27.789 --> 00:13:30.529 people than me. There's way more dedicated people 00:13:30.529 --> 00:13:32.649 than me They would probably laugh and be like, 00:13:32.669 --> 00:13:35.750 oh you went without sleep for two days That's 00:13:35.750 --> 00:13:40.779 funny The thing about engineering is that you 00:13:40.779 --> 00:13:45.120 will find people that will just They will stay 00:13:45.120 --> 00:13:47.379 up and they will solve what like other people 00:13:47.379 --> 00:13:50.100 will say is like a pointless problem just to 00:13:50.100 --> 00:13:55.179 do it. So like Yes, it does suck it a hundred 00:13:55.179 --> 00:13:56.899 percent. I agree with you It does suck that we 00:13:56.899 --> 00:13:59.799 do not have the political leadership to back 00:13:59.799 --> 00:14:04.539 us on this. However Engineering is going to proceed. 00:14:04.539 --> 00:14:09.080 It's going to push forward You're going to have 00:14:09.080 --> 00:14:12.299 companies and also just random engineers that 00:14:12.299 --> 00:14:15.059 are going to just take on the task themselves. 00:14:15.059 --> 00:14:17.320 They're not going to wait for the right moment 00:14:17.320 --> 00:14:22.779 to kind of present itself. I hope you're right. 00:14:23.860 --> 00:14:28.720 I have very little faith in us right now. That's 00:14:28.720 --> 00:14:33.299 my thing. I have so little faith in us. I just 00:14:33.299 --> 00:14:38.799 do. It sucks. But that's that's kind of where 00:14:38.799 --> 00:14:43.539 we're at. Anyway, what do you all think? Is this 00:14:43.539 --> 00:14:45.799 a big sea change? Is it the sea change we think 00:14:45.799 --> 00:14:48.860 it's going to be? Does this change the whole 00:14:48.860 --> 00:14:51.820 thing? What's going to be the next big troll 00:14:51.820 --> 00:14:53.820 coming out of China? Because I think that this 00:14:53.820 --> 00:14:57.600 is just their opening salvo. I think TikTok and 00:14:57.600 --> 00:15:03.000 deep sea is just the this. Just the surface of 00:15:03.000 --> 00:15:05.259 what they're about to hit us with. So let us 00:15:05.259 --> 00:15:07.779 know what you think. down in the comments below.