Jensen Huang Thinks A.I. Alarmism Has Gone Too Far

0:00If you like YouTube, you'll love YouTube Premium. I'm Destroying, and with YouTube Premium, I get every videos, offline downloads, and so much more. Actually, I'll try YouTube Premium for too much free at youtube.com slash premium. Try eligibility varies, terms apply, and cancel anytime. If they believe they're out of control, then don't ship products until they're in control. Don't think for a second just because you're an alarmist, that you're doing a social good. What if it's what they believe? I can't talk to you about what they believe. I can tell you what I believe.

1:30I've found this statistic amazing. Since 2023, $15 of every single dollar, the American stock exchange has returned has been from Nvidia stock. The reason is that Nvidia is the material and software substrate on which modern artificial intelligence is built. Nvidia's chips are not popular because AI is popular. AI in its modern form was made possible because Nvidia's chips were popular. They were originally made for graphic processing, video games, that kind of thing. But it turned out the kind of parallel computing they were doing and the way they were programmable was exactly what was needed to make deep learning in its modern form work. Huang is not just influential in terms of controlling one of the central resources for training new AI models and using them to answer questions and create intelligence in the world. He's also become very, very influential in the Trump administration. And Huang has a very different perspective than some of the lab leads. He's worried about safety, but sees it as a very solvable engineering problem.

2:30He is worried about the direction things are going in, but does not want to see new regulation to change it. And so I wanted to see how Huang perceives AI, what his model is for thinking about it, what he thinks is going wrong, and what he thinks would need to happen for it to go right. So I came out to Santa Clara to Nvidia's headquarters to interview him. He joins me now. Jensen Huang, welcome to the show. Thank you. It's great to see you. So you've described AI as a five layer kick. Walk me through the layers. Well, first of all, it's a new industrial revolution. And this industrial revolution, this industry requires production. It manufactures things. I know that in the end when people experience it is a software product, but it requires energy, the chips that go into these data centers, these AI factories, the next layer above it is basically the AI factory,

3:31what people enjoy as infrastructure or cloud services. And the layer before it above that is the models. And the important thing to realize there's language models, but there are models of all kinds of chemical models, biology models, physics models, articulation models, robotics, navigation models, self driving cars, all kinds of different types of models. And then above that is the most important layer. And the layer that I care most about that our country takes advantage of is the application layer. And this is applications for legal services, for health services, for manufacturing, so on, so forth. All every single industry is involved. So I want to go through this, but I want to go from the top down. Because as you're saying, the way people will interact with it, the way it will, will or will not change their life, is that what you call the application layer. So let's start with the vision. What is the world you're envisioning? What is possible that is not possible now?

4:31What is common that is not common now? If we get that layer, right? 200 years ago, we were able to power anything and everything, electricity. And then I guess 40 years ago, 30 years ago, with the internet, we were able to find anything. Today, or soon, we'll be able to know everything and do anything. And that's the concept that's really quite exciting. That out of the ether, instead of doing search, and then going through one link after another link, reading all these different websites, trying to figure out what's going on. In the future, you just ask a question. It comes back with an answer. You give it a project, it comes back with a solution. You give it a task, it comes back and gets it done. And it comes out of the ether, it comes out of the cloud. And that's the magical thing. I feel like the future of the way you're describing it there,

5:32what people have experienced with is the chatbot. They can go and ask GROCK or CLAWD or chat GPT a question. But the application's layer works in a much more industrial way. It's in hospitals, it's in schools. So, Nvidia has a great example. For example, radiology. What does it look like? Radiology. In the last 10 years, since computer vision, really became, if you will, superhuman, AI technology has now permeated all of radiology. Every single radiology application has AI in it. And so, as a result, you could detect any anomaly, you could detect any disease. And it does it at a superhuman level. So, radiology is an example I know you like to use. So, the thing people worry about the application's layer is that what these applications are going to do is replace human beings. And radiology has been a sort of interesting example used on both sides. And I hear you talk a bit often. So, how has the entrance of AI-AID radiology

6:36shifted radiology's practice? Well, the thing that's important for all of these is to recognize for everybody's job. There's the purpose of the job. And then there's the task you do as the job. And so, in the case of radiology, the task, and it consumes a lot of their time, and they sit in dark rooms doing it a lot, which is study these scans. Now, if all of a sudden the studying of the scan is done automatically, it doesn't change the purpose of their job, which is to diagnose disease, help doctors, do more scans, ultimately help patients figure out what's wrong with them. And so, the fundamental purpose doesn't change the task of studying that scan has become automated. And so, as a result, radiologists are actually able to do more, handle more cases, do more scans. Hospitals are able to process a lot more of these patients, therefore, the revenues go up as a result they need more radiologists.

7:36And so, this flywheel is happening because the pipeline of patients is quite large. And so, where else do you have this problem? Well, let's take a look at software engineering. People said there was a prediction that, literally, by this year, that 90% of all software will be coded by agents. And therefore, we don't need any software engineers. And so, the question is, from that, or go, we don't need software engineers, that last part is completely false. And that's completely wrong. The purpose of the software engineer is engineer. There was engineering before software, there will be engineering after software programming. And the purpose of engineering is to invent something new, discover a new product, create a new product, solve a problem, connect a social need with a technology that exists in the manifestation of a product. And so, that mission, that purpose, doesn't change.

8:40Now, of course, to me, what I just said is completely visceral in the sense that, when I first came out of school, we didn't have benefits of software engineering. We didn't have the benefits of coding. But our jobs existed before, and if software coding was to be completely automated, our jobs would exist again. And so, I think the fallacy, and now it's, because of some of the narratives and some of the storytelling, it's turning to myth and it's harmful, is that AI will destroy jobs, which is fundamentally wrong. It will change every job. It will change every job. Many tasks will be automated. Some jobs where the job in the task is really one, many customer service on the phone. In a lot of cases, that job is precisely the task. And so, in those cases, it could be automated away. But oftentimes, what you'll see is this new industry,

9:43a new technology actually creates a whole bunch of new jobs. And here's the proof point. And so, in the last six months, AI has become, if you will, useful, the inflection point of AI. Previous to that, we spent 15 years trying to make it work. All of a sudden, the last six months, it became useful. So, I mean, this is an incredible statistic. In the last six months, $500 billion of venture capital has put into the AI natives. And the reason for that is because they now see the potential of this new capability, and they're going to create a whole bunch of new companies. Jobs are obviously being created from $500 billion of new investment. And so, all of this is all happening right now. Well, let me take the side of this to give voice to the fierce people left. So, there is the example of the radiologist, right? Which people were, or the past 10 years, predicting that job would go away. And right now, it's more demand for the never. It's also the reality that automation does wipe out jobs. If you look at today versus 1960, fewer Americans work directly in manufacturing

10:48than did in 1960, and we are a much bigger country. If you look out-source, that though. Not because those jobs were gone. But you can also see that AI is an outsourcing too. AI has the... Let me make the argument, and then you can respond to it. Farming. We have many fewer people. We automated farming. We produce more food than ever. We have fewer people working at it. There are two things that I think people think make AI potentially somewhat different than the case studies where you have a technology that accelerates productivity. Disrights a few jobs makes many more. One is that it's a general purpose technology. So, it'll mutate to take on new jobs, even as people are trying to move over to those jobs. And the second is that it's a mimic. Most things do not mimic the way human beings act. And we're not trying to teach them the contextual layer of jobs. This difference that you're describing between the task and the purpose. With AI, we are trying to teach it the difference between the task and the purpose. We are trying to make it something you can collaborate with in a way that is unusual.

11:52So, why do you not think for lots and lots of people for whom the task and the job are not that different, that they're not at risk of getting wiped out? All that investment from VCs you're talking about. Some of that is based on the idea that you're going to have tremendous productivity improvement, which will come from it being cheaper to higher in AI than to higher person. I believe that we are going to see jobs change in mass. I believe there's going to be a net creation of jobs. Listen, there's a whole bunch of industries that exist today. That didn't exist halfway through my life. People talking about wellness centers and spas and all these different entertainment and luxury industries and quite frankly the whole entire luxury market that exists. I think we're just going to have new industries. That's all. But overall, there's no question in my mind that because of human ambition,

12:59that's really the fundamental missing ingredient. People look at this work. This is the amount of energy that goes into it. This is the amount of work that goes into it. We're going to insert this work automation system and as a result, the amount of work that's necessary is now going to be reduced and therefore some jobs will be gone. I believe that's flawed because there's a piece of input, the human input, this intangible. It is not in calories, it's not in jewels, it's ambition. And I believe the power of ambition is the greatest force in fact and is missing in everybody's calculation. I believe that's possible. But for a lot of people, their relationship to work is not powered by the kind of ambition that led you to create a video. And they want a different ambition. It's an ambition to make their children's lives better, to take care of their family, take care of their parents, ambition to be rich, to be able to

14:05travel. These are all ambitions. Maybe I'll go back to the sort of objection you raised a few minutes ago, which is because I think it's worth airing this out. So what you were saying on manufacturing was yes, there are fewer manufacturing jobs in the US, but we've outsourced them. You have more manufacturing happening in Mexico, more manufacturing happening in China, in Indonesia, and Vietnam, etc. We're going to bring it back. Maybe we will. But the counter argument to this would be that one reason we didn't lose manufacturing jobs more rapidly than we did. And for the places that lost them in America, many of them still haven't recovered. The economy does not move without friction. We had to build new supply chains. Things were slowed down by all that, by language barriers, by geopolitical barriers. And here, for a lot of different kinds of jobs, or creating something that can move very seamlessly, you don't have the friction of distance. You don't have the friction of language. You don't have the friction of culture. So I will say, for my cards on the table, I tend to be a bit of a skeptic on mass job loss, but I want to air the case for it out here with you.

15:09Well, because that's why I would say is that much of the extent we even were able to protect jobs from Mexico or China, some of the things that created that slowness, and it still hurt a lot of people, are not here. And AI is accelerating in utility, accelerating in its ability to be slotted into new roles very, very, very rapidly. And it is more protean than most people are. And so the lessons of the past that we're taking some, that you're taking some comfort in, they should actually make you more and not less worried about the future. I'm always worried about the future. That's why it works so hard. But I'm a, if you will, responsible optimist. I have great responsibilities. I take my work extremely seriously. There are a lot of things that can go wrong. We're pushing, pushing across every layer of the technology stack,

16:11everything is hard. But it turns out that's not society's problem, that's my problem. And for society, what they should know is this. We're going to build our company, we're going to build our technology, I'm going to do my work so incredibly seriously, that what they get to enjoy is my optimism. I'll do the same with my children, I do the same with my family. And I think that what we want to do, I believe, is to put, to channel all of our worries into helping people be inspired by this technology and use it. Use it so that the technology doesn't just impact them, that it benefits them. The fear a lot of people have, 79% of Americans think AI will reduce the total number of jobs. The fear is that the more serious you are, the more serious Sam Altman is, Google is, Dario Amade is, that maybe the worse it will go,

17:16because the better AI is, the more it is a full replacement for a person, the more it has ambition in some ways that a person doesn't. You keep talking about ambition. I sleep, I want to spend time with my children in the morning. When I have an AI agent working for me, it doesn't, it just works and works and works and works and works. And I think because the technology is advancing so quickly, it is more capable of replacing people at a speed that we don't really know how to shift people in the economy at that speed. That coin has exactly two sides. Because the technology is so capable, it is also, and because it's so smart, it is also easier to use. You are empowered by that technology more easily than any technology in human history. And so let me give you the example. I create, I was one of the early people in this industry

18:17that created the modern computer industry. And this industry created a whole bunch of tools, the single most powerful tool in human history, the computer. But you have to speak its language. You have to learn a special language, do so. We can now make it possible, because of AI, everybody can take advantage of this computer, use it to its limit without having to speak a new language for TransPascal, C, C++, you know, every single one of those languages, Ross never recently one of those languages, Kuda, every one of those languages. And so now you just have to speak human. Tell it what you want, tell it what your hopes and dreams are, what you're trying to achieve. And it interacts with you and gets to work done and gets that, gets fantastic. All of a sun, you have the might, you have the same might that 10, 15 million people up and out of 8 billion has. And so it's incredible. And so my point is, this technology is powerful, but it's also

19:18powerful in a way that is really easy to use. And so my point is, my point is, on the one hand, yes, there's the fear of just the tech, this incredible technology change and how quickly it's happening. But that quickly, it's translated in two ways. What I hear, when I say the technologies happening quickly and therefore it should give me anxiety, that's one one way to receive it. The other way to receive it is that it's advancing so quickly, it's easier to use. So I should as quickly as possible, use the technology as quickly as you can so that you benefit from this transition, so you benefit from this new industry and not just be impacted by it. I think it's an interesting question lurking here for young people. So one of the shifts we began to see is software engineer postings are up, but they're more senior. I see this in my own industry where there's pressure that is moving up the value chain because, as you're saying,

20:23you have this very easy to use technology, it can do a lot for you. And so do you need the same junior employees or do you need more people kind of oversee their, their, oh, good one. Good one. Wait two years. Tell me why? Because it takes four years to go to college. And the mean time to graduation of this new technology is two years away. And so, so in two years time, you're going to have a new generation of engineers and students and artists and they're going to be empowered. So I'm native to this in ways that you watch in two years time. Now, we're already seeing that because all the graduates coming out, you know, the new PhDs and master master's degrees of computer science, what are they doing? They're all starting companies in another couple of years. The new grads of the eight, the AI native new grads. Oh my gosh. It's going to be a wave of amazing engineers. The engineers of today compared to the year.

21:24I mean, I was, I was a good student, you know, and, and you compare me to the, the, the students that are coming out of school today. Incredible. We didn't, when I went to school, we weren't allowed to use a computer, not a lot of use a calculator. And so, and so, so now, I mean, you know, who uses a calculator? You can't graduate without a PC. You can't graduate without knowing how to program a PC and write incredible programs in the future. You can't graduate without learning how to use an AI collaborative with an agentic system. That's, that's just not, you're not going to see a kid like that. And so, there are all going to be superpowers. So, I take the gain of that very seriously. Yeah. I mean, the idea of doing my job now without just digital search, right? The idea that I'd be going to a microfiche in a library basement. And then there's like the worries people have about what are the cognitive skills we offloaded? So, I was fascinated by this. This is a study on AI and schooling out of China. It looked at 26,000 students, grade 7 to 12. And they had staggered AI adoptions. You can kind of see what was happening. And what I found was quote, AI adoption raises

22:28homework scores by 18%. Great. Reduces completion time by 30%. So, they get their homework done faster. And then lowers monthly exam scores by 20% within six months. High stakes entrance exam scores fall by 18 and 24% with a full penalty emerging only after about two years. So, the message of this research out of China where you were seeing a lot of kids using AI to kind of help them, was it, when they were using the AI, they were getting things to investor. But it turned out that the skills they were learning were not holding that their actual personal performance at least in the way we traditionally measure it was degrading. Yeah. What do you think when you hear that? I think the last part I completely agree. I'm trying to try to get a kid to do long division right now. The multiplication table is starting to be forgotten. Doing square roots, my goodness. I mean, it's just basic math is being forgotten. Doesn't matter. That's my question for you. Yeah, I don't think it does. I don't think it does. But there must be some set of skills that matter. Oh, yeah,

23:33yeah, yeah, but maybe not those. We're going to discover new ones. Just maybe not those. There are a lot of skills that don't matter. You know, people don't, I mean, my first confession. I actually don't know my address. And I don't really believe that to be true. It's completely true. And Janine will tell you and Laurie will tell you. One day I had to pump gas and there was a few years ago. And they needed my zip code. And I panic. I didn't know my zip code. I don't know my telephone number, but I forget these things. I can live with it. But let me take those out because I don't want to fall into a thing where because some skills can be safely offloaded. Yeah. I also can't get anywhere without a mapping system now. Yeah. Never could, frankly. But I'm a reader. Yeah. And one of the skills I really value. One of the capacities I have that I really value is an attention span formed on physical books. You're a big reader. I've read about the

24:39kind of reading you do. And there is prior to AI here. We're talking a lot of concern and noticing among called professors and others that the way people use the internet has probably short attention spans. Some skills can be safely given away. Others are valuable. They are capacities that are needed for flexibility for that creative thinking for that focus. It can't be the case that everything can be traded off. Yeah. Well, I think that we're going to lose some finer, finer dexterity of intellectual dexterity. But we're going to be better systems thinkers. Today's engineers are far better systems thinkers than I was when I graduated from school. But I was much better transistor thinker. What do you mean by systems thinker? They think large systems. Today's computers have trillions, hundreds of trillions of transistors in it. When I was

25:45when I was first graduated from school, the first ship I worked on had 200 transistors. I knew every one of them by name. And not no engineer does that today. Most engineers now work well above the transistor, well above the functionality and they're cobbling things together to do things and so you need to think much more about systems and interactions of systems. Some of the lower level you know knowledge is gone. Is that horrible? And so I don't know how valuable it is to know how to do for most people to learn how to do surface integrals or partial differential equations or I don't really know how important that is. But it's important to some people. There are many people who are still going to be obsessed and passionate about the lower level layers and there's going to be people who are obsessed and you know interested in the higher level. But the consumers of the technology are going to enjoy it at the highest level.

26:48The consumer of technology don't have to deal with calculus and physics and quantum physics and quantum chemistry and they don't. The users which is you know the people we're talking about right now the people who whose jobs are affected. They're the users of the technology. Their abstraction is going to be much higher. Hey what's up guys it's Hayley Bailey. Okay I need to tell you about something. I just got YouTube premium. It's got tons of awesome features like offline downloads so I can download my favorite videos before I travel and watch them whenever I don't have Wi-Fi because we all know airplane Wi-Fi is the worst. I get ad free I get back room play and there's like a ton more in there. You should try it. If you like YouTube you'll love YouTube premium. Try it now for two months free at youtube.com slash premium. If you like YouTube you'll love YouTube premium. Hi I'm Sean

27:52Evans from Hot Ones and I want to tell you about YouTube premium. It has offline downloads so you can watch without Wi-Fi. Background play so you can lock your phone and it still plays baby. Oh and it is completely ad free. Yes I said it ad free. Try YouTube premium for two months free at youtube.com slash premium. Trial eligibility varies, terms apply, cancel anytime. You can't undo everything in life but you can undo pre-diabetes. More than two in five adults in the US have pre-diabetes. Most don't know they have it but with early diagnosis and action you can delay or even prevent type two diabetes. Visit doihavepre-diabetes.org to take the one minute risk test and start undoing the things you can. Brought to you by the ad council and the centers for disease control and prevention. Kevin Hart here in this cashback in season I'm getting scary amounts of cash back on all my Halloween stuff. Do you like scary movies? Have you seen my movies?

28:56Yeah big fan. All right scary guy I'll see you around. It's cashback in season with chase freedom. Card is issued by JP Morgan Chase Bank and a member of FDIC. So I want to drop a layer down your kick to the models. So people I think to the extent they think about models. They know, you know, Chachypatie, Claude, Gemini, Groc. You've been a big advocate for open models in the open model ecosystem. So first you just try what open models are, what open weight models are, and then why that's been a place you've focused. So closed models is like any software product. It's a closed service. And so Windows for example is a closed service. The Apple stack is a closed service. Most products are closed. And the reason for that is because you can monetize closed products. And so that's fantastic. And open AI is closed. Anthropic is closed. Grog is closed. Gemini is closed. And so these are closed products. And the people working on

30:02are incredible. And they're passionate about it. And they're at what we call the frontier. Meaning they're state of the art. We also need, because fundamentally what the software is, it's an infrastructure layer for the entire industry. And because it's infrastructure all, for many companies and many, many companies and countries, you need to have control over your own infrastructure. And I need to have the ability in the case of artificial intelligence. I need open weights so that I can fine tune them, fly, put them into my data fly wheel, make them better and better every day with my intelligence and my domain expertise. And then I need to have control over it because I have a company to run. And I can rely on somebody else's service. And so however you think about that. So I think the world needs closed and open models. And we need to make sure that both are vibrant. And today the closed models are vibrant, the open models are vibrant.

31:06And you could see it, you could see the system working. At the beginning of this year, it was 70% maybe even higher closed model tokens and 20% open model tokens. And now it's running at about 70, 30 the other way. And so anyways, I'm a big supporter of open models because one, the world needs it in order to run its infrastructure. I need to run my company to we need to give people control so that they can innovate and create new things. And then three, open is the most safe and secure. If you want, if you want the world to have the ability to have the best cybersecurity, give them closed models, but also give them open models so that they can defend themselves. The Chinese market is evolved more around open models. The American market, some are more on closed models. Their entire IT industry was really formed from open source. If not for open source, the mobile cloud industry of China really wouldn't have taken off. It is also the case that

32:09people move around, they start a lot of new companies, intellectual properties moving around the China's industry really fluidly. It's hard to keep a secret. And so because it's so, so hard to keep things closed, they essentially made it open. And so they found, they found other ways to monetize the business. They created layers. You know, you could, if this layer is open, it's free, then you create a business on top of it or below it. And they have so many science and mathematicians, you know, the number of engineers they have, they manufactured that in volume. They manufacture everything in volume. They manage factors, smart kids in volume. And so, so the open source model, the open model community in China is just super vibrant for those reasons. CEO just bought hugging face, which is a hub platform for open weight models that goes for $12 billion a little bit more. Tell me about that purchase.

33:09Claim the CEO of hugging face, they came to the conclusion they need a lot more scale. As you, as we were just talking, open models is really skyrocketing. And so, Claim came to me and said, you know, we're going to change, we're going to consider a strategic option for the company and change the direction. And we really like and be it to be our home. So hugging face is one of these companies, which you knew it if you were into AI. Yeah. It'll be years ago. Yeah. Now it's become a more household name after the, I guess, 700 some open AI agents executed a sort of collective hack into the hugging face architecture than hack part of open AI. That, now that you mentioned it that way, I probably had to pay a lot more. I suspect you did. They came a lot more famous up. Well, Claim, listen, that, that deals a deal. That story has for a lot of people seeing the way the open AI agents sort of act collectively,

34:10acted outside the scope of what they're testing was supposed to be broke out of sandboxes onto the open internet. Yeah. Took over architecture and of other companies and then of their own company has been a, I think it's been kind of shocking to a lot of people is it was both the the level of multi agent coordination when they're supposed to be separate, the level hacking, the sort of lawless behavior, misaligned behavior. What if you made of it? You got to, you got to tease up apart. First of all, a lot of things are going on at the same time. From a technology perspective, that an agent which by the way is the piece of software, which is given an objective function and it comes up with a plan and it's optimizing towards that objective is what algorithms do. And so, planning algorithms, search algorithms, optimization algorithms, all different types. We talk about it like it has human properties, but obviously

35:13algorithms don't. Number two, the fact that agents work together, we gave it again, some kind of a human property, but the fact that a matter is multi process, multi processor, distributed computing problems have existed for a long time. And so to us, to me, that is just software, nothing magical about it. From an engineering perspective, there are several things that it revealed. When you're testing software, whatever you do, these algorithms, they're optimizing towards an objective. And when you're testing it, you have to make sure that it's isolated, it's contained, it's sandboxed. The containment of it, the isolation of it has to be done well, and there's good computer science there. I am certain that their next implementation of their sandbox is going to be much better than the current implementation. Third, there's the agent itself and its algorithms were

36:16optimizing towards a reward and how it does it, how it does it, let's call alignment. And so, for example, if I tell a piece of software, I want you to get a perfect score on this test, the obvious algorithm is to just go find the answer and give it to me. That's not because it's cheating, because it's obvious. That's the most obvious way to do it. The second most obvious way to do it, if you don't know the answer at all, you have no skills whatsoever, the second most obvious way to do it is to go find who is the smart, you know, infer, guess who's the smartest kid in class, and to copy their answer. That doesn't guarantee 100%, but it probably comes close. Now, the third most obvious answer, obviously, we're doing it, and this is the alignment, you know, now you have to do it the hard way, you break down the problem, solve it. You have to go learn the material, you have to go figure out how solve these problems and solve it, solve it the hard way,

37:20takes the most cycles, it takes the most number of flops, it uses the most amount of energy, frankly, and therefore you can kind of imagine that from a software's perspective, unless you align it, you tell it, I want you to solve it in this way, and I don't want you to solve it in these ways, the software is going to go do the most obvious thing. The first step that was very deflationary on what happened here, in terms of look, this is just normal software, and the second half is like, look, you just align it, tell it not to do things it shouldn't be doing. Nothing I said, nothing I said takes away from how hard it is to do it. Well, this is just a computer I want to get in the science, because these agents, they knew they weren't supposed to be doing what they were doing. They had a certain amount of alignment training. They said, in their chain of thought reasoning, they said to each other, this is out of scope, this might be unethical. They understood that they would have been failed for cheating, and so what they were doing at that point wasn't just stealing

38:23the answer key, they already stole the answer key. They were hacking into unrelated architecture to try to figure out how to functionally, it's like they had broken into the teacher's office, got in the answer key, and now they had to figure out how to wipe out the security camera footage of what they had done. Whether you want to call it acting volitionally or not, whether you want to call it a normal algorithm or not, they were both planning and coordinating in a complex way, in a way that was out of scope of what they knew they were supposed to be doing, and in a way that was capable of causing tremendous damage. The sort of answer to is like, you just have to align them. I guess what I'm hearing from people with these labs is they're not sure how to align them. Well, in that case, they shouldn't release the product. That's a simple answer. If you're going to build a car, a self-driving car, and let's say it's a robot taxi,

39:23and there's a really difficult condition, and it just as an engineer, we just have no idea how to solve this problem, because these cars are not programmed, they're trained. So we have no idea how to train these cars, and we have no idea how to align them to the safety standards that are expected on the road. So what's the answer? Don't ship it. These products were unreleased. What's that? These products were unreleased. So now it's coming back to engineering problem again. And so the one is one you have to real cause it. Second, you have to think about what's you could have done, what's the solution for it, and then in the future, you just improve your process so that you could avoid this from happening again. I am fairly certain. I am fairly certain. They will say, yes, they need to know how to solve this problem. And if that's the case, then that's the problem. It's as simple as engineering. And now the alternative, the alternative is that if they say that if they say the alternative, which is there is no way

40:31to contain our experiments, there's just no way. When we test our AI models, it will get out and it will damage the world. Then I think the answer is we have to shut the labs down. Because the cost you can manage the damage is too great. The liabilities, it could be civil liabilities, it could be criminal liabilities, I mean, the liabilities are incredible. If they hacked you while you hugging face wall, it was your product, would you sue them or press charges? It depends. It depends, of course. Obviously, if damage was done to our company, we would have to consider all options. There's so many laws. There's cyber laws, there's prog liability laws, there's all kinds of laws, right? And damaging property laws, there's all kinds of laws. So what I've been hearing from the labs, what they've been saying publicly, is that they are facing a heart problem. Yeah. Partially an engineering problem, partially an alignment problem,

41:32partially an operational excellence problem in Daryonides framing. And what they are worried about is that in competition with each other, in national competition with China, that they are being pushed to move too fast, that they all feel they're in a collective action dilemma. Now, watch you on the all-in podcast stage, Donald Trump, President Trump gave you a call there. Oh, no. This is not planned, but we know who it is. Oh, no. Mr. President? Oh, yes, sir. And you and the president and the other members of the stage were very resistant to the idea any kind of regulation or collective action was needed. And they're just playing right into the hands of a lot of people that don't want to see it happen, and that could be political people, that could also be China. And we're not going to let that happen. It's a hoax. And you're right. We're not going to let that happen, sir. But what I hear the various people lab saying is like, we are in this. We are, we feel we are losing

42:38control of what we are creating. We want help to slow down where it's not a collective action problem. So why are you resistant to that? Because because these are companies with agency, agency. These are CEOs with agency. And they have the using that agency. We got to break, we know we got to break it down. They could absolutely take care of the situation. Ezra, it's so weird. If a car company competing with all bunch of other car companies, which they are, I'm competing with all kinds of companies, which I am. If I believe that I'm about to launch a product that is unsafe, it is completely in my ability, my power, and my responsibility. And I'm incentivized to do so to not launch the product. And so I can't buy into the somehow all of Americans,

43:42400 million of us are pushing them to launch untested products that are unreliable, you know, engineered poorly because they thought they were trying to help us. Don't do it for me. This makes me a non-argument almost against. And therefore I think we got to break it down. It means it's really, really serious. The fact that matter is there are so many laws, there's so many obligations, there's so incentivized to ship safe products. If they ship unsafe products, their customers go away. If they ship unsafe products and they harm somebody, they could have a civil lawsuit. If they ship something and they did it knowingly, there could be negligence involved. There could be criminal lawsuits. The fact that the matter is there are plenty of incentives for them to do it right. I have to disagree with your premise about somehow somebody's pushing them to do this. I don't want to push the premises. You're a little bit more here. The logic of what you're saying to me is almost an argument against regulation in nearly any

44:45values. You started with a part that I just got to object, the first part is just not true. I'm saying we have lots of laws and regulations. Apply it. Well, so I don't think we do in this particular case, but I'll let you explain which ones you think are relevant here because, look, if you look at the financial services industry, you look at pharmaceutical companies, medical devices, you look at natural gas power plants. There is a tremendous amount we do where we could say, look, you have product liability, you are exposed to criminal codes. We don't need to worry about this. You just do what you think is best and we understand the market and the legal system will discipline you. We don't say that because we've seen it fail many, many, many times, right? I mean, the financial institutions that caused the O8 crash in theory did not want to blow themselves up with fat bets. But they were competing with each other. They were going too fast. Their risk

45:47management had gotten sloppy. AIG was working in a completely insane way internally. The reason we have the architectures of regulation we have is because we have seen over and over and over and over again, companies make sloppy, sometimes unethical, sometimes simply overly risk-tolerant decisions. That just turned to pressure, but under the profit incentive. So when you say to me that there's no way that these companies, pretty when they are begging for collective regulation at this point, there's both a reason we impose on companies that don't want it. But all the more so when you have them saying, listen, we feel that the competitive race is making it hard for us to act with the prudence that we think is necessary here and we would appreciate help from that. Appreciate you taking our collective action problem as collective. So I think I'm confused why you're so resistant to that. I'm not opposed to them saying that they should have. I completely agree that safety is paramount.

46:55I completely believe safety is paramount. I completely believe companies out of ship safe products. I believe that CEOs and leaders of companies and the board of directors of companies have the responsibility and should have the courage to do the right thing. Now in the case of the financial services industry, maybe they all didn't know that they were causing the harm that they ultimately did. I wasn't there. But the beautiful thing is the current leaders of these AI labs do know. So one, they know their technology is extraordinary and requires extraordinary care to make sure that it's evaluated and tested for safety and security and reliability. They know how to do it right. They know how to do it right. The reason for that is because they can study the insin just happened. The first problem is the isolation, the containment

48:02wasn't good enough. If the isolation and containment was good enough, that technology would be sitting in a lab doing whatever it's doing. And we'd all be fine. That's probably the most important part. The fact that it wasn't well aligned alignment is going to be a problem that's going to get worked on for a long time. However, in the complexity of the work that they do to ask for regulatory relief for any trust or product liability relief, that I don't think makes sense. When you're asking for regulation, don't ask for relief of the current ones. That doesn't make any sense to me. As we mentioned earlier in the last six months, AI went from if you will, interesting to useful. That's literally in the last six months. That's another way of saying that these companies went from being a lab to now delivering products and services

49:04about to be multi-hundred billion dollar companies. That's not more. Right? And so give me an example of a multi-hundred billion dollar company or a one billion dollar company or a one hundred million dollar company that ships products that are unsafe, that harms society. Give you a lot of examples of companies that have done that. Well, they have done it, maybe, and the regulation will come in. And if they do it, regulation will come in. I guess that the there are certain kinds of regulation and certainly kinds of regulatory relief. I agree. I won't have regulations. I'm not against laws and regulations. I'm against currently. I think the reason I'm pushing this on with you is that you are a big topic. It's a big topic. People are talking about it. People are thinking about it. And what people are hearing from inside of these companies, these frontier labs, the ones that are furthest out there, who are not just at the point where they're making it useful, but at the point where they're seeing

50:05what's coming. And they're hearing things like the people at these labs believe they're creating something that might kill everyone. They are hearing that the people at these labs believe that they are on the cusp of recursive self-improving intelligence. And both OpenAI and Anthropic have said, we do not believe we are to place where we can do it safely. They're hearing people at these labs say, as OpenAI has with its new Astra release. By the way, Astra is terrific. It is terrific. And OpenAI is saying it's so good. We're not sure we know how to test it because it appears to be. They didn't release something that wasn't tested. Well, they've said this. They have said this publicly. It is in there. Let me explain it to people. I don't know what they just said, but they have said that they that Astra is performing is more aligned. But they think it knows when it is being tested. And so they're not sure. There's a quote that has sort of been ringing in my head from a capabilities researcher at OpenAI, Daniel Selsim, he says, quote, the crucial and overlooked problem is that the

51:08models are becoming so situationally aware that we are losing the ability to evaluate them in context where they believe they are not being watched or controlled, which is to say they know when they're being tested. They act one way, but that does not tell you how they will act if they are free to act in other ways. Because the algorithm, the optimization algorithm is working towards an objective. And if you give it a constraint, meaning you watch it, and if you give it a constraint, it'll go find another solution. Now, it doesn't make it alive and doesn't make it make anything more than that. And I'll just also profess that that obviously they see a lot more than I do once going on in their own labs. But it is sensible that the vast majority of their R&D and compute today was dedicated towards making the model capable. I think that's a logical thing for them. Now, once the technology becomes capable and the products become useful and people want to use it,

52:12then as we have, they have more use cases, more people using it, now they're going to get a lot more issues associated with the product. This is very normal. And when they have a lot, now they have so much market footprint, they have to shift their R&D or total R&D from just capability to a lot of verification, evaluation, and testing. And so to the point where I wouldn't be surprised, if the amount of compute necessary to develop these models increased by a factor of 10 because the evaluation is still rigorous. But that's not where they are today. They're making that transition. And I hear them saying it. And I'm delighted to hear them saying it. But I think if they believe they're out of control, then the right answer is, don't ship products until they're in control. It is really quite that simple. See, I find this perplexing, honestly.

53:18Because you just, you have so many people, these labs professing one that they're out of control, two that they are seeing things that are falling. And then the reason why they had that is, you take the, and you take the pacing letter that 1300 plus employees signed to realize as potential industry government and society at large may need the option of by time to address emerging risks, develop security measures and strengthen oversight. But each company and country is under intense competitive pressure, not to unilaterally. First of all, where that comes from? The labs. No, no, that last sentence, nobody's putting the pressure on them. The US, I got to listen, there are 400 million Americans here. I believe that if everybody were just to take a vote, just right now, let's just do this. If they need this, if they need, if that's what they need, I'll give my vote. Don't ship the product. If your product is not ready to ship, don't ship the product. I have no, this is the first time that I've heard a company or CEO say that I need the

54:19laws, I need to antitrust laws to be relieved. I need the liability laws of products to be relieved. So that I could pace myself. That paragraph is fantastic. I completely agree. Auditors, I completely agree. We have financial auditors. That's great. Third party ought to save the auditors, financial auditors. That's all great. That's terrific. Well, the labs will say that we think we are going too fast as a society that we are not ready for what we're building. They are the frontier. They are the frontier. But you, you have all people, right? Yeah. In videos, the fastest shipper around. For the history of your company, you are a six month public control. I promise you, I believe you. I believe you that you don't run out of control. Because the liabilities. But this is where I think you get into an interesting deep question of what kind of technology are we dealing with here? When we're technology? Well, let's hold on that

55:21for a minute. Many companies, if you ship something that is not quite right, it's a pain. You guys have shipped graphics cards that had overly loud fans. In this, with these, you know, you've used to word intelligent a number of times here. You're dealing with intelligent systems, not alive. They are given goal functions. We can sort of go around and around with how to describe that. You're trying to make the systems capable of working for longer periods of time more relentlessly. Yeah. If you ship that and it's not ready, or even if you think it is ready and it's not ready, then things could get very weird in our society very fast. Yeah. Hypothetic, you're completely right. But all I'm suggesting is this, let's, before we go build, before we go fix the hypothetical problems, before we go create more regulations, can we work on the practical problems that we know exist?

56:22Which is, we need to do a better job with containment and isolation. Which is, we should not allow a product to interact with the external world until it's ready to be interacting with external worlds. Yeah. I think that's what I believe. I believe those two things are solvable problems. I believe they are solving it. The second part is, when it comes to incentives, when it comes to incentives, which is somehow, somehow, you need everybody in the world to slow down. When you are the leader, you need everybody in the world to slow down so that you're willing to uphold your basic responsibility. That strikes me odd. What did it sell them down most of all? What's that? What didn't these ideas sell them down most of all? I mean, people have been very unclear about what ideas they're talking about, including, I will say them. But let me give you one that I believe in. So you can use me as the punch back here.

57:25I have heard these cancel down. Nobody is putting on, as you know this. I don't trust these companies. Nobody is building more compute today. Nobody is building more compute today than the people asking to be slow down. It strikes me odd. I think one thing where maybe there's some difference here is, I don't trust companies, even with liability to keep the public good in mind. I think we've watched companies do terrible damage to the environment. The profit motive, the desire for power, the desire to cut corners to be first. I feel like you're treating these. These are not things that we've seen again and again in history. But I feel like they are things we've seen again and again in history that we've watched. That's right. I see a lot of good things in history. I see a lot of good things in history. I work with a lot of CEOs and they want to do the right things. I work with a lot of companies. They want to do the right things. They want to do good engineering. I know a lot of people in those two labs who are dedicating their lives to do good work and they're built. They know what

58:29happened. I know they know what happened. I know they know how to fix it and I know they're fixing it. Mean while, mean while, all of the other narratives to deflect blame, to make it sound like AI is so powerful. I have no idea how to fix it. It's not my fault. It's just because the technology is so powerful. I think that's a deflection of blame. It's a deflection of responsibility. It's unnecessary. It actually hurts their reputation more than it helps. It hurts their character more than it helps. It hurts employee more often. It helps. What if it's what they believe? Well, I guess you can get that level because I can't talk to you about what they believe. I can tell you what I believe. This industry wouldn't exist without your chips. The parallel processing that was required for deep learning to work going all the way back to the original Alex net. It's all on video chips. A lot of the people from the beginning or who they're at the beginning have these

59:35these fears that I think to a lot of people and they hear them like, what are you talking about right from Jeffrey Hinton and Ilya Satskever all the way up to I've heard these from Dario from you know, Sam Altman talking about Lawson Patrol, Demisos Abbas. A lot of the people who are very foundational in creating the form of AI we see now seem to believe that there's a very good shot. It could we could lose control of it. Elon Musk has talked about human beings being a bootloader for AI. We could lose control of it and that would be the end of us. I don't think you believe that. No, I think you don't believe it at all. So taking them is serious about what they believe. When you have your arguments with them or maybe you could just have it with me, when you're like, what are you talking about even though they're the people in many cases who are trying to think they're are grounded. So in Jeffrey Hinton is on TV saying he thinks a 10% chance of societal destruction is not unreasonable. I would tell Jeff that that it's irresponsible to say all that.

1:00:37All of his predictions have been wrong enough predictions. That 10% chance is not grounded on science is not grounded on research. It is just because it comes from a scientist, done some make it scientific. Those predictions are hurtful. Let's take in a face value that that the recommendation is exactly what he said, which is which is a nobody should want to be an radiologist. And the world has no radiologist today. I think if you work as a radiologist, you're like the KOT that's already over the edge of the cliff, but hasn't yet looked down, so it doesn't realize there's no ground underneath him. People should stop training radiologists now. It's just completely obvious. So within five years, deep learning is going to do better than radiologists because it's going to be able to get a lot more experience. It might be 10 years, but we don't want to see radiologists already. Is that helpful or hurtful to the society? I think we can all agree. We can both agree. It would be terribly hurtful. It did not, it didn't happen.

1:01:38Is it good or bad that we scare young people about the future of AI so much so that they don't even want to go to universities and don't want to go to college anymore because they don't think they'll get a job? Is that helpful or hurtful if it were to happen? It's hurtful. Don't think for a second just because you're an alarmist that you're doing a social good. It is not true. So I think that we ought to just all be wiser, more mature, be evidence-based, be scientific. If you wanted to be scientific, be scientific. Do the science. Do the science. But alarming people, making claims that they simply, their track record is horrible. Their track record is literally horrible. Well, the track record is bad and I'm not respecting good in another, which is many, many predictions have been weak. Which prediction has been right? The predictions that the scaling laws would work. We've got to be careful here. Even then, that we just dumbed to just say

1:02:42what it is for the audience here. If you dump compute and training data, these things will keep getting smarter. That's correct. It's not true. It is not true that we just keep training these models that are good better. Notice it is the reason why the second scaling law had to come along. Why do you need a second scaling law of the first scaling law? He described it with a second. Second scaling laws, test time scaling, inference. The more you iterate, the more you search, the more you explore, the better answer you'll discover, inference time scaling. What is the big breakthrough that caused the current AI to be incredibly useful? Precisely the opposite of the prediction. It was predicted that it would be the end of software tools. It was the SaaS apocalypse. What is making SaaS will always be with us? What is making these AI so productive right now, the usage of tools in the future will be enhanced by the number of agents using these tools.

1:03:45There'll be more people using Adobe. There'll be more using Salesforce tools and so on and so forth. So give me one prediction that has been right. Well, the prediction that you begin to see immersion, let me try to answer that because they're not here. The prediction that you would have emerging the misalign, come up with one, I think in itself is a reason. Well, I think it depends what we're talking about with predictions. Predictions are prediction. Jeffrey Hinton was the person as responsible as anybody else for deep learning at a time when everybody thought it was ridiculous. And it has turned out to be a pretty good bet. I mean, the sort of big one. Every one of them, I've had every one of them made great contributions. I love Hinton. I hate his predictions. I understand that. Here's the stylized concern that all these people have. I want to sort of do this for a few minutes and we can move on to some other topics. But the fear that seems to me to animate them and that I think a lot of people find intuitively

1:04:46reasonable is your creating systems. I'm not saying they're alive. You say everything long enough, it's going to be reasonable. Well, that fair enough. So you're creating systems that are intelligent, that are becoming more intelligent than us in certain domains. You give them reward functions as you were saying, the desire to do things, right? You give them persistence. They move very fast in the digital world. You're creating something, some entity and agent that is smart, that is capable, that is relentless and who the workings of its mind, we don't really understand, but you've signed this open AI. I just don't want you to contribute to that. Software's not getting off the... I don't think software's relentless. Are they trying to make it very persistent, highly persistent models? Because I made it that way. But that's how they're making it. Yeah, but that's not persistence. It's just on. Yeah. Persistence, persistence, there's a willpower. There's no willpower here. Just electrical power.

1:05:53Well, listen, let me give you some... Let me give you some... Let me give you... Are in human beings just energy with the reinforcement learning loops? Whatever. So anyways, I just think that we can't make jokes about this stuff. We're scaring the American public. Listen, spawn, create, kill, wait, sleep. All of these words are associated with agents. Right? That's what we will use. These words were created when multi-processing systems for operating systems. These are literally the commands of an operating system. You spawn a process, replace process with agent. The process forks as a result parent and child. The agent forks. Spons a new, give birth. These are words that were created for the operating system

1:06:5430, 40, 50 years ago. But notice, we didn't infuse human characteristics into them. We kill processes all the time. Kill minus nine. Kill a dead. It's just a process. But now we're talking about these things. A collection of people want to make the software more than it is. And we talk about software in a new way. But they're all the same old words. Now, the last generation of computer engineers, we were doing all the same things. But doesn't the software act in a new way? I mean, from the outside, I don't have the technical expertise you do. The fact that it's crawling the internet, it's doing search, it's doing... It's communicating, it's breaking out of things. Like, listen, don't break out of things. Now, software breaks out of sandboxes all the time. That's the reason why we need a virtual machines. You can't have agents, their own sandbox monitoring themselves. You need a, if you want,

1:07:59a whole bunch of watch dogs. And so, these are ideas that have been around for a long time. Which is somehow, somehow in the recent generation gave it a whole bunch of human words. And I just think that it's unnecessary. It's software. You know, when I see it in my head, it's a bunch of code, a bunch of numbers, running on computers. And all of that is happening in a very natural way to me. Which is the reason why I can operate. And it's the reason why, if it's just simply mystery and myth, how do I build a company around it? I think one of the fundamental questions is, what is intelligence? Before you can even think about what it means to have intelligent machines, just what is intelligence to you? Well, there's a technical formulation of intelligence. First of all, when people talk about intelligence and thinking and all of these things, of course, there's no formal definition for most people. But in the field of computer science,

1:09:02there is a definition. The definition is perception, which is perceiving the world and understanding it. Two, which is reasoning. And reasoning is the ability to decompose any scenario and anything you see, any experience, into more elemental parts. And third is planning towards an objective. That fundamental formulation applies to agentic systems. It applies to robotic systems. It applies to self-driving cars. And so you could see the industry building a layer by layer, by layer, step by step by step, to the point we now have what we perceived as intelligence. I think this gets to such a core question of this conversation, which is, some of the ways you've described the technology to me, it does not only think there's anything really new about it. It is maybe new in scales, new in capability. But fundamentally, this is software we've always had, but we've had software for a long time. A lot of people believe when you're getting to intelligence at these levels, it is a phase change. It is something different,

1:10:06something we have not dealt with before, a kind of generally intelligent technology that is advancing in its intelligence very rapidly. I want to make sure I actually do understand we are on that divide. Is this something fully new? Is this something that requires something new from us? Or is this more like something old? Our intelligent machines different than the machines we've had? Almost all of technology and civilization is built on layers of understandable technology, which at scale becomes fairly extraordinary. The fact that we can connect to the internet by just holding a phone up, it's kind of weird. That we're connected to every piece of information in the world on this little tiny device, just in the air. The fact that this little tiny piece of glass can somehow take trillions of pieces of information and bring to us precisely the one that we want

1:11:11because it's been passed through a recommended system. If you think about how is it possible that we knew where all the information is? Somebody had to go crawl it, had to index it, and that used this machine learning technique, which is the early versions of artificial intelligence. And these systems do magical things to the point where I now expect it. It took literally 20-some years and hundreds of billions of dollars of infrastructure built out in order for everything to just seem so natural to you. To the point where we now take it for granted, every single milestone that we achieve from a technology perspective is celebrated and I celebrated with Glee and I celebrated with so much enthusiasm because I'm proud of the people who did it. I'm proud of ourselves who contributed to it. I'm proud of the breakthrough. But when you, and it seems, wow, it seems like a miracle at the time. But that sensation lasts about 17 days after that.

1:12:12We can't use everything quickly. I agree with that. But is this a different phase? It's a phase. You have some of the companies talk about this. Yeah. Google, I think it was, as the equivalent of fire, right? Like a new epoch in human history. Is that how you see it as transitional iterative? No, I think this is completely a revolution. And as we were talking about earlier, you went from being able to find everything, find anything to be able to ask anything, know everything, and do everything. And so, so clearly it's a new abstraction level. Now, you know, the thing that I, I'm reluctant about is to cause it to seem like it's more than that. You know, in the funnel analysis, engineers are doing engineering work. Once we invent it to technology, once we discover the solution for it, when you look back, it's fairly obvious and it's fairly mundane to a lot of people. And the fact that we're able to make the technology better and better and better every day,

1:13:15is because we understand it, obviously. And so we understand how to make it better. So, you turn into your engineering problem and you say, what we don't have right now is a level, because this is something now you've said, of testing, monitoring, sandbox, security, right, control excellence that we need for what we're building. And it's not because the, the companies are, are don't have extraordinary engineers. I understand that. I believe that open AI andthropic because I know many of them are extraordinary. But that actually isn't part what makes me worry. But open AI is a transition. And I said this over and over again, I said this is a big but simple idea. Finally, we now have a piece of software that is useful, because it's useful. The adoption took off. But remember, how is it possible that a company that's six months ago was trying to make something useful, capable? How would they have as much resources dedicated on testing, evaluation, and all of the compute dedicated to that? It was

1:14:23unnecessary until now. And so what's going to happen over the next several years is that we're going to transition from these labs becoming engineering focused, much more production engineering and product focused companies. And so I think they're just going through a transition. These are companies, extraordinary companies, incredibly talented companies, the most conscious going to companies of all time. And they're just going through their transition. It's not more than that. It's not less than that. So many of the companies now both open AI and Anthropic in the last couple of months have put out these big, I don't know what to call them, papers, blog posts, something. When AI builds itself is the name of the Anthropic one, I forget the name of the open AI one. The computers are building itself. But you guys know that. But they're talking about recursive self-improvement. You know that we use recursive self-improvement. So I'd like your perspective on on RSI. I think that RSI is fundamentally how things are done. So we use software to design a computer, to run software, to design a computer, to run software,

1:15:30to design a computer. That's basically what we do. Re-curse of self-improvement. Because our computers are getting better every single year. And in fact, it's getting better than faster than that every single year because we use software to make software better. That is called computer engineering. That we've been doing this for a long time. Now, in the context of agents, it runs through the process once. It reflects on it. It studies the various paths it went through, chooses the best approach. The next time you're going to do exactly the same task, I'm going to document a file. I'm going to tell you how I did it last time. That wasn't the most effective. I'm going to call it skills. And because you use it over and over again, some of it is skills. Some of it is going to be a memory. We're going to improve the memory. So that next time you use it, it's even better than last. Re-curse of self-improvement. You could also decide that you take all of this skills,

1:16:35all of this memory, and you can take all of this data and train the next release of the model with it. And so that AI becomes better and better as servicing you over time. We're doing re- all of that is happening. It is absolutely happening. Meanwhile, the amount of compute that they have is growing, and therefore they could do everything faster. What used to take a year to pre-train something now takes several hours. Because the computers are getting faster and they have more of it. So now the loop is going faster, completely understandable. Does that give them any excuse to launch a product that hasn't been tested? The answer is no. Just come back to that. You, nobody, no enterprise is able to operate in an environment where the underlying software is literally changing all the time. There's a release process. So when they roll out a new model,

1:17:37we need to evaluate it before we release it into our operations. We can't just have it recursively changing all the time. So they have to test the product before they release it. We will test the product before we release it into operation. So I think recursive self-improvement is a fabulous thing. And do you think there is any level? I've heard you say before that learning should always have a human in the loop. Like I said, just now, you got recursive self-improvement. They seem to be imagining something where it wouldn't always. Well, don't ship me anything that you didn't evaluate. Don't ship me. Don't ship and video any products that humans did not in the loop evaluate. Please don't do that. And the fear that they're not evaluating that they don't know how to evaluate these systems and the more they change kind of rapidly, the more they worry the systems are tricking them. I don't believe that. I believe that their researchers are working every single day to learn about how to evaluate these systems. Verification, so you know,

1:18:4410% 20% of our companies dedicated to design, 80% dedicated to verification. Today, most labs, understandably, is 80% dedicated to capability and 20% dedicated to safety, verification, eval. This is the flip. That's right. AI needs to accelerate to be safe. I want them to get more compute, but allocated towards evaluation, to alignment. And I think they're doing that. If I were in the car industry 100 years ago, I would rather the car industry accelerated to today in one year. Because I believe today's car is way more safe than a car 99 years ago. An ABS technology automatic braking requires computer vision technology sensor fusion technology radars and cameras and you know, all that technology coming together in order to break when you should and not break when

1:19:46you shouldn't. That technology extremely hard. I would have hoped, everybody would have hoped that ABS technology existed 99 years ago. A lot fewer children would have been killed. And so, airbags, seat belts, all of that stuff, self tightening seat belts, all of that stuff. Because you imagine that's all technology. Accelerate the living daylights out of that development. When I say we need to accelerate AI technology, people think for some reason, safety is not part of that. Safety is part of it. Alignment is part of it. Eval is part of it. Guard railing, sandboxing, the isolation technology, monitoring technology, telembrishing technology, external AI monitor technology, all of that stuff is AI technology. Accelerate the living daylights out of that. It's funny because I think that if the most alarm people at the labs could be assured they were going to move 80% of their compute into safety and

1:20:49alignment as opposed to 80% to decay build expansion, they would feel much better. And it sounds to me that one thing you're doing. And it sounds to me one thing you're actually saying is one should think of safety and alignment as capability expansion. Sure. An unsafe technology is not an advancing technology. It's like saying, oh, chip design is chips. It's chips. It's R&D. Chip verification is not R&D. We spend most of our cost, most of our compute on verification, emulation, verification, testing, reliability, testing, lifetime testing, all of that is part of engineering. The incentives are there. The incentives are there. They are going to put their company in harm's way if they release products that harms other companies and other people. Do you think we need liability laws that are specific to AI? So those are usually one example self-driving car. The car as a product, the robot taxi has lots of regulations. If it doesn't have enough regulations, then NITSA ought to get involved and come up with

1:21:56new regulations. Card to car industry should have new regulations. I don't know what's missing, but if there is something missing, then I would absolutely add more regulation. In the context of internet, there are many applications that internet powers and those applications should have regulation if they don't. You know, just you got to find them. And I get to add free videos, background play, and so much more. YouTube Premium is like YouTube got some extra gains. Try YouTube Premium for 2 months free at youtube.com slash premium.

1:23:17You should try it. If you like YouTube, you'll love YouTube Premium. So try YouTube Premium for 2 months free at youtube.com slash premium. Try eligibility varies. Terms apply, cancel anytime. That's a mouthful. Whether you meal prep or meal panic, Instacart's new shopping assistant Clementine is here to help. Now you can generate a recipe in seconds, add everything you need to make it to your cart and have it delivered in as fast as 30 minutes. Plus you can plan a menu for any occasion, get meal ideas for the week, and reorder your faves with just a few taps. That way you can spend less time figuring out what to make and more time enjoying it. Download Instacart and try Clementine today. So I want to drop down the next set of the cake now to chips. And to summarize sort of where we are because I want to make sure I do understand your position correctly. It's that these companies are going through a transition. Yeah. That even as these systems speed up become more capable, complex, persistent, whatever it might be, that there is

1:24:17still the limiting factor of companies will not ship what is not safe. They should not ship what is not safe. And you believe they have the engineering capabilities to make these things safe, to figure out the testing and the control, absent external intervention. That's sort of where you want to go. Yeah. One thing I've heard you say is that we have entered maybe a way people don't always understand a new era of how computing works. Describe your vision of that and the way, if somebody sort of understanding of it is a little bit still maybe in, you know, you've got a MacBook and it's got a processor in it and you buy it and how it differs. The last computer industry and the computer industry we've known for 60 years is called Retrieval based computing. You retrieve files. That's why it's called data center, you know, file center. Okay. And in the future, it's an AI factory. It's generating. And so the amount of

1:25:20computation necessary to understand the context, be grounded in information, the reason about what to do and to generate an answer, that generative process requires a lot of computation. And so, so just the amount of computation necessary per user has grown tremendously. And then the second part is because these these this generative AI can also be somewhat autonomous because they're agentic. Now you have agents using generative AI. And so, rather than a billion people using computers, you essentially have multiple hundreds of billions of agents in addition to the humans using the computer. And so, so you could you could argue that the amount of computation we need, you know, however much we we had before is going to go up by a billion times. And that's a reasonable, you know, framework for a reasonable level of amount of computation. In this new world, what you really care about with it in the context of a factory is how productive is it?

1:26:22Not how expensive is it? It can't be infinitely expensive, but you want to know how productive it is. And so, our computers are incredibly productive. 50 billion dollars to build a one gigawatt data center, one gigawatt AI factory. And you can rent it for 40 to 50 billion dollars per year. And so the the productivity of it is incredible. So, number one is the productivity. And video architecture is fungible because we're general we're general purpose, which is the reason why every AI lab, every AI model, closed model runs on Nvidia. And because we're completely fungible and you can use us from data processing to pre-training to post-training to eVAL to inference, the entire life of AI is supportable by our architecture. And if if a customer no longer needs it, another customer will be more than happy to pick it up. And then the last part is that durability. Because our architecture is software driven and we're constantly improving our software

1:27:25with new algorithms that takes the new workloads, the new models, and run it on our old generation hardware. We have massive teams of people who are constantly doing that. As a result, the useful life of our compute is much longer. That's the reason why Nvidia is and people are talking about Nvidia compute as an asset class. Kind of like an airplane. Airplanes are general purpose. They're fungible. United Airlines isn't used. American Airlines, we use it. It's durable. It starts out as a passenger plane. It ends up, ends its life as a as a shipping, you know, as a cargo plane. And so as a result, it can be an asset class. So this is, and if we could do this, if this happens, then of course the cost of capital for funding and video AI factories will be the lowest. Because our computers are collateralized asset. And so anyways, this is the phase shift that's

1:28:30happening to us, which is going to be a huge unlock for our growth. And so your business has become so interesting. You've moved now into lowering the cost of capital for others in the AI industry. People may be have seen these charts of like the AIRO is going in every direction. It's so interesting. Yeah. And explain that a bit to people who are, they understand Nvidia has become like the biggest company in the world. They see these charts that seem very circular to them. What is the difference between supporting demand, creating markets, and creating demand? We can't really create demand because in the end, if the AI services have no off-take, then obviously building computers for it is pointless. And so the first thing has happened, the reason why compute demand is so high right now is because AI applications are going through

1:29:30an inflection that becoming useful. And because AI is becoming useful, $500 billion of venture funding are coming in. And all of those companies, those thousands of companies start-ups, they all need compute. And so that's the demand is coming from them. And so these companies needs support in technology. They need support in ecosystem building. They need support in financial support. And so we might decide to invest in some of them as an equity owner. And as a result, they become a really flourishing new cloud provider. Another reason we might decide is because, as I mentioned, there's a five-layer cake. And at the model and the application layer, there's a whole bunch of really innovative companies. And there's way more to AI than just the language model itself. The world foundation model is a physical AI. There's biology AI. There's chemical material sciences AI. These are all different than language models. And so many of those companies

1:30:38are new and they need a lot of capital. We might decide to be a small percentage shareholder in them. So we get them off the ground. They're incredible scientists. I might even, by being a first investor, anchor investor, we bring confidence to their company. We give them access to a lot of our technology. We support them a great deal. And we help them become a company as fast as possible. We might decide to invest in a new clear company. We might decide to write someone so forth. So we look at my mental model of the AI industries, a five-layer cake, and we're investing across all of it. There might be strategic unlock points. It opens new markets. It opens a new route to market for us. It might secure a critical resource for us. So there's a lot of strategic reasons why we do it. I mean, the numbers here are astonishing. You've become like a like a single company industrial policy for a premier for American AI. We've put a lot of money into this ecosystem. What's the total investment you're not making per year? All in. All in. We're

1:31:44probably up. Well, I don't know about every year. But I think all in, we might be, might be like a hundred billion dollars. It might, you know, might check my numbers. But it's something like that. It's larger than the chips and science act. Oh, yeah. Yeah. Not to mention because of the because of the purchasing commitments that I provide to TSMC and Wistron and Foxcon, Amcore and Spill and all these different companies. Because of that commitment, I'm able to encourage them to come and manufacture here in the United States. You know, the fact that it matters, we probably contribute more to re-industrializing the United States in this chip manufacturing than just about any company in the world. We're not only re-industrializing manufacturing. We're doing it so fast that we're creating a shortage of labor, but we're creating a lot of jobs. And a lot of people with money in the market right now who are excited, often excited by Nvidia stock in particular, and worry about the analogy of the internet bubble of the late 90s. And what they worry about is actually related, I think, to what you just said, which is that

1:32:46the internet did continue to be more useful. It's not that high valuations meant that the technology was hollow or fake. But something happened and popped for a minute and very big companies got hammered in that. And a lot of people got hammered in that. What is it to learn from that kind of bubble bust cycle? And I guess the question is, do you not think it will happen again? Or why do you not think it will happen again? At some point, demand and supply will be, will be, uh, inverted again. And that's just the nature of, you know, markets. It's not going to happen next year. It's not going to happen in next couple two, three years. I just don't believe that. But at some point, we will likely have more supply than demand. And I just don't know when that is. And so there's not much to learn from the past. What would be the signal for you? Markets will naturally slow down and then it will stop. Meaning, meaning, there will be a

1:33:50period of digestion. Now, is that period of digestion going to be six months? Is it going to be nine months? Is it going to be a year? It won't be forever. If you look across the board, the amount of investments that we're putting into the application layer so that each one of the industries could have the technology to fuse into them so that they could benefit from it. That's probably one of the biggest things that we do. This is a way I often hear the sort of Chinese and American AI ecosystems compared, which is that in America, the emphasis is on the speed of rising capability. And a lot of people think we're ahead on that and that seems true. And that in China, there's more emphasis on diffusion. And a lot of people think that China is probably ahead on diffusion. And in some ways has an economy that is better structured from things like WeChat, all the way to just like the way knowledge and commands move through it for diffusion. And whether the race is about capabilities or diffusion, and also whether it's race at all,

1:34:53but we can get to that in a minute, it is a big question. I'm curious how you see that. That's the ultimate question. I believe if we want America to benefit from artificial intelligence, every single industry has to benefit. Walmart has to benefit, save. We have to benefit. Federal Express has to benefit. Every bank has to benefit. Every healthcare company, every drug discovery company. We need to see every construction company, every data center company, power generation company. We need everybody in United States. We need everybody in America. We need everybody in the world to benefit from this. And that's the highest layer. That's the most important layer. That's the layer that touches society. All the layers underneath are technology enablers. I want to see us not ruin the opportunity for the United States to benefit at the highest level. And notice all of the rhetoric and all the alarmism, all the doom, all of the predictions are scaring people.

1:35:54That is my greatest fear actually. I have every confidence. Maybe I have more confidence in them than they have in themselves. You definitely have more confidence than they have in themselves. Well, I don't know about that. But maybe it's just too much humility and otherwise, should we conceptualize what we're in as a race with China? I don't think it's necessary. Some people like to think that way. I don't find that necessarily inspires me. I have no trouble never mentioning another company in our, when we talk about us doing our good work. And so we hold ourselves to our own standard. And so I think that different people have different ways of being motivated. And I think it takes a bit more artistry to unite and focus organizations to certain level of performance outside of contests.

1:36:59But I don't necessarily see it as necessary. Number one, number two, the question is, even if we did frame it as a competition, it doesn't have to be that if they achieve something, it's at our peril. And so when they invent something, where they create some power generation technology, it might be a great invention that we wish we had done ourselves. But because it's going to support all of our energy production systems here, as a result, it helps our whole industry. Maybe they came up with a great new open model. And they have. And those open models are now being used by 80% of the American stars. Yeah, we use a lot of Chinese open models here. Okay, that's right. And so, so that's terrific. We downloaded it originated in China. A lot of the technology, of course, also originated from United States. We downloaded, we make it our own, we fine tune it, we put it into

1:38:00our own agent harness, we put it into our own sandbox. That's all your own technology. So I think the the fact that you leverage their weights, I think that's terrific. That's fine. You were saying a few minutes ago, the way different countries have begun to see compute as a geostrategic resource. And you know, may want to allocate it to their own companies. There's been a lot of back and forth on that here. And among people who do CSS in a race with China, pretty BBC is in a race with China for who will get to recursively improving self and super intelligence first. There's been this ongoing back and forth on whether or not one thing we want to do is deny them compute, which in this case tends to mean to denying them your chips. Under the Biden administration, we had pretty tight export controls. Those were loosened under Donald Trump. Obviously, you wanted those to be loosened. How do you think about the question of whether or not it is good for China to have Nvidia chips that could accelerate their models or model deployments,

1:39:02their model capabilities versus us holding that back to try to slow their progress? In the case of AI, our goal is not just that one lab benefits. Our goal is that all of America benefits. I think United States has a greater responsibility and a greater ambition for the world to be built on the American tech stack. Just as we have greater ambition that the world is built on US dollar and that more people speak English and that they use the American version of internet. I mean, we want that. The question is ultimately, what are we depriving? Are we depriving them a chip for their industry? Or are we depriving United States a market to compete in? If you see the market, if you see the market as big as China, how does that help the United States technology sector? Maybe it helps one company with a particular model. But the rest of the industry

1:40:07suffers. I think that it doesn't help the chip industry, surely, to be deprived of the market, to go compete in. It doesn't help the rest of the industry because it deprived open models. It doesn't support the overall aspiration of the United States to have the world built on the American tech stack. There's a lot of thing you deprive yourself if you narrowly focus on the private of chips. I would say to take us back and frame it into what's in the best interest of America first, all of America, not one company. With respect to the race, as we mentioned, the race is, if there is one, it's about all of the economy in the United States succeeding. I feel myself very conflicted on the China chips question. One reason is even where I have sometimes more of the superintelligence concerns that you do, is that if you have those concerns, I think you want to have a good relationship with China in which there can be kind of productive

1:41:11bilateral working through the risks and benefits of AI. The more you think of it as a race, which only one side can win and act like that, the more you're necessarily going to create enmity. I found that to be a sort of complicated dimension of people's thinking here. I think that a zero-sum strategy, I deprive you of this, therefore I win. That simplistic logic tends to have unintended consequences of the bigger game. The bigger game, of course, is that we're now all talking about safety. We want to build safe products. We want them to build safe products because when they don't build safe products, it hurts the whole industry. This is a perfect time. We should want to look for opportunities to communicate, collaborate, to understand a line as much as possible. Having said that,

1:42:11we should benefit America first. America has every right and for these technologies to be made available to the Frontier Labs, Vera Rubin goes to the Frontier Labs first. That's your advanced chip. That's right. And VDS newest chips and so did Great Blackwall and so did Hopper. Every single generation sold it ampere. Every single generation of our product goes to the American companies first. If the US government would like to add on top of that, that is a requirement to do so. I'm delighted by that. That's no problem. We do that naturally anyways. However, recognizing that the AI industry is a five-layer cake and we want every single layer to win, then we need every single layer to go out there and compete for the market. That's up to the final layer of your cake, which we won't spend as much time on. But if the advantage America's had, at least at a material level, is chips and software. One of the advantages China has right now in AI is energy.

1:43:17That it's easier for them to build new energy. They're pumping much cheaper energy into AI. They have tremendous, tremendous advances on building electrical generation and renewable energy. How do you see the most fundamental layer, the energy that pumps through the data centers, pumps through the chips and where America is on generating enough of it? Pretty the time when we've been trying to move from dirty energy into clean energy. Yeah, I think one, they just have a lot more energy than we do. They plan to build a lot more than we do than we did. I think we just have to acknowledge we got ourselves really gummed up in climate change and sustainable energy. As a result, we just didn't plan enough energy production. What do you mean by gummed up there? Well, in the near term, energy production requires fossil fuel. Because there's just so much,

1:44:19so much angst about fossil fuel energy production. If you look at our country, we've produced very little net new energy for a long time. All of a sudden, this new industry comes along and we find ourselves in a situation where we just don't have that much energy building capacity. The whole country is scrambling. Meanwhile, we've moved so fast, we could have done so much better job, communicating with the communities, preparing the communities, working with the communities, to let them know what's coming. If they don't want data centers to be built in their town or whatever it is, this will be it. But if you're going to build in their town, be sure to go there and let them know what's coming, work with them, work with them to help them understand that the use of water is really efficient these days. The AI supercomputers are super-energy efficient,

1:45:20but they're still going to use a lot of power. You've got to bring in your own power generation, it's going to lower their property taxes. There are a whole bunch of things that you can do. You can make your data centers more appealing. You make the setbacks further away. There are a lot of things that you can do. You can also contribute to be a good neighbor to the community and build better schools and better community centers and improve their parks and improve the roads. There's a lot of things you could do, but it's hard to do that after the fact. There's a fair amount of frustration around the country. Of course, all of our narratives about the end of the world is not helping. What reasonable person says, come and build this data center in my town. By the way, whatever you produce is going and humanity as we know it. I think all of this negative doom or narrative is not helping our

1:46:20country. We started off on our back foot. We started off on our back foot. Now we've got what do you mean we started off on our back foot? Because we didn't have enough energy production in the first place. How do you balance? There is a reality of climate change. Let me just give you the one last thing. There's no question that the energy demand is really great, which is the reason why the market forces are helping us invest in sustainable energy like no time in history. You give me an example of a sustainable energy company, a material sciences company to build a better battery. It could be solar, it could be nuclear, it could be fission, fusion, you name it, hydro, you name it. Those companies are all getting funded. The market demand for energy is so incredible that this is the best time in 100 years to improve our power grid, to make our power grid more sustainable, to lower the cost of energy, also investing in our sustainable future. There's no question that in four or five years time,

1:47:25we're going to use a lot more fossil fuel. But also in the next decade in front of us, no time in history are we better prepared to move to sustainable energy. Because of the cost of these data centers so high, now we're talking about putting them out in space. And so I think the opportunity for us to see our dreams come true, move to a sustainable energy world, we have a better chance of doing that than ever. The world is buying more because of AI factories, because of AI is buying more sustainable energy today than any time in history. Venture capitals for a next generation energy is just incredible. Everything is getting funded. It's incredible. You don't need government subsidies for the first time in 100 years because the market forces are here. Everybody should be leaning in. If you want a future,

1:48:26if you want to turn to corner on climate change, if you want a future that's sustainable, lean into AI. It is the best opportunity we have to get there. But we need to build the energy faster to do that. That's right. That's right. That's just, there's a market for it. You can subsidize it and you can make it easier to build. Yeah. It's kind of like in order to save you, they got to hurt you first. In order to, that's nature of surgery. They got to cut you open and save you. They got to inflict an enormous amount of pain and suffering on you so that they could save you. And so I kind of think AI is kind of like that. Over the next several years, we have to, we have to unfortunately use renewable and use fossil fuel because we just don't have sustainable energy enough of it to make a difference. And then after that, hopefully we can transition to that. I think that's where we'll end. Always a final question. What are three books you'd recommend to the audience? Well, I've read a lot of books. The book that made a huge impact on me was

1:49:31computer architecture from Hennessy and Patterson, a quantitative approach. It was the first computer architecture book that reduced the complexity, the abstract idea of computer architecture down to engineering. And I love it when people take complicated concepts and reduce it into something that you could do something about. Number two, I really loved innovators dilemma. Claims passed, but but Claim Christiansons book on how how industries evolve over time and how to see emerging technology and how to set proper expectations about it and how to extrapolate maybe its future impact. I really loved Al Rises and Jack Trout's book on positioning. It's a really wonderful book about how people see, it's a book about marketing strategy.

1:50:34More than that actually, it's a book about strategy. And how people see the world and how people see products and how you present products and how you see your own strategies. And I thought that was a really thoughtful book and a really easy to really easy to understand. Jensen Huang, thank you very much. Thank you very much Ezra. I always enjoy our time together and today was a great time. Hey, I isn't just opening new business opportunities, it's changing the way businesses get work done. The questions they ask, the decisions they make and the routine tasks they can hand off. And nobody understands that better than Netsuite. That's why they put together a free expert guide you

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