Gene Monster joins us here on the technology of the moment.
Gene Monster, I want to go bigger.
Broader with you because we sort of beat the death, you know, the Minutia news and all that on in video and more iPhones out of Nikai saying Apple's doing better. Scott Galloway is one of the wisest people I know, and in some interview gene Monster, Scott Galloway said, basically the single most important thing in his life is he's never listened to people who said sell Microsoft, sell Apple,
and now sell Invidia. Time Magazine Norman Seth the famous photograph nineteen eighty four of Steve Jobs cross legged on a living room floor with that ugly mac. The rich kids owned it a million years ago.
How does gene.
Monster react emotionally when it's out there these tech juggernauts sell Microsoft, sell Apple, selling video.
Well, I think the how I think about it is just what's the long term. You got to think the long term play, and there's the new term, and that's what's the vortex that's going around in Vidia today. And I generally react to a view of where the world is going. In the case of within Vidia, it's a belief, a strong belief I'm staking my career that AI is going to be a bigger having a bigger impact than
the Internet. And if that's the case, this trading around in Nvidia today is largely noise, even though it is a three trillion dollar company. And the reason why I still am comfortable and think of this in that same class as Apple and Microsoft is that, ultimately is if you believe that AI is going to be is transformative,
more transformative than the Internet. And there's a second belief you have to have is that the way to get there is through scaling laws, which basically say you have to throw more compute in data at the problem to solve for intelligence. Then Nvidia is going to be a winner, and I think that it is in a great place. I do want to add one an angle to an additional angle to the context of just buy and hold forever.
Is that deep water we own in video. I think the next two years are going to be far better than what people are expecting today. But at some point, when you're a hardware only company, there is a point of deceleration that needs to be taken into consideration. And I think that two years, three years from now this may be a position that will trim, but we think today is the time to own.
It, Gene.
When somebody like you, Geene Mounts Says, are staking their career on this, that really really resonates for a lot of our listeners and viewers. Gene, can you just remind us how you view AI in a context of the Internet, electricity, stuff like that, because that really hit home when you go, I first heard you say that.
So I mean I guess that believe that this is going to be transformed with a kind of struggle for the right of nowlogy is it the Internet, is it mobile? Is it electricity? And at the core of humanity is intelligence And the concept of having intelligence in real time at scale is something that it's hard to put a value on it. I think it's much more valuable than connecting machines and connecting data. As powerful as that has been, I think intelligence is a powerful a more powerful aspect
to it. And so there is a piece of a huge missing piece around the substance of what does that actually mean, like how is that going to impact our lives? And the use cases and the examples have been few and far between about how AIS like profoundly impacting our lives. I just want to give one quick example. If we'd go back in a time machine in ninety five and be talking about the potential of the Internet, we could easily frame out what that Facebook was going to happen
with social connecting over the Internet. We could see what that Netflix was coming around the corner with video over the Internet. But it would have been impossible for us to understand that the smartphone was going to come because that was obviously enabled by the Internet. Those kind of second and third derivatives. And that's kind of similar to
how I think about AI more broadly. And I'm not concerned that we don't have these killer use cases today because I think that those will present themselves as we reach closer to general and eventually super intelligence, which is where it really gets crazy.
Were you surprised by the iPhone build out reported by Nike today in Nickai rather in Tokyo.
Did that surprise your team.
Gene, I'm not surprised. I think what is most important is that when I think about this next iPhone cycle, you have to it comes back to this belief, and do you think that these features are going to be exciting for people, and I just I don't worry about what kind of the near term builds are, whether they're positive or negative. What I think about is is are
these features people will want? And I just quickly go back for I look back over kind of last seventeen iPhone cycles and try to compare what these AI features are going to do for demand, and I think it's similar to the iPhone six plus that was the first.
Large right, Oh, yeah, you have the iPhone six plus.
Yeah, I think so, But I'm upgrading soon, Geane.
That's good.
You're right there. You're only ten years, ten years in and it's time Paul. But the iPhone growth I went from twelve percent for the iPhone five cycle to fifty two percent. I mean, it had a profound impact on how people got excited about these devices. One just more quick thought about how I think about the cycle is that the if we look at the total number of iPhones that are out there, there's about one point five billion active iPhones. The act the life is just over
five years average life of an iPhone. And if you take the next tranch, so take not the one that typically upgrades this year, but the one that's going to typically upgrade in late twenty twenty six, and you assume ten percent of those just ten percent of those see these AI features and say yes, I'm going to buy it.
A year early, the iPhone growth goes from seven to fifteen percent, and so the sensitivity around just getting a small piece of that massive pool to move forward is going to have a measurable impact on the business.
Gene thank you, Gene Monster.
With this thank you, I say really really appreciating, congratulations to our team.