hey everybody welcome back to another episode of the 65 podcast Daniel Newman here back in the chair this room doesn't look familiar if you're watching this on video it's because I'm not in my normal spot but then again Pat has there been a normal spot for the last I don't know 22 weeks it's felt like we've been on the road on the road on the road on the road but guess what next week no travel that I'm aware of yet nothing's come up I'm going to be home all week long couldn't be happy how are you doing my my friend Betsy it's great to be back in the seat uh we were gone all week Monday through Thursday hitting discover hitting Pure Storage accelerate uh I am glad to be back I got a great night of sleep didn't sleep too well in uh in Las Vegas you know it's really important to get that circadium Rhythm anytime you get out of that and yeah I need to I need to drink less too I think I had um no I'm just kidding I think I had one sip uh I think you had one Olive um hit your limit is there anything wrong with having ordering a very expensive Martini a little bit dirty with blue cheese olives and just dipping the olives and not ever drinking the martini I mean why is that wrong I mean it seems maybe wasteful but I feel pretty good about it yeah I'm not uh big on drinking again I I had I had one SI uh of mine feeling pretty good worked out twice feeling pretty good you know I I need to get I need to hit it I'll probably hit it after uh uh work but I am doing a no no I'm not trying to cut you I want I want to elaborate on this you know we had a couple of people in our community actually comment on you how good you look and you know I know you're talking a lot more about Fitness and Health and Longevity and you know I think someone said hey Pat how do you do it and so it's someone you know that's that maybe for our friends out there in the audience give them the quick 60c how do you Pat someone that's made a major life change lost 50 pounds in a year uh got turned to working out better diet better focus supplementation all that stuff how do you balance that with a life as crazy as yours give everybody a minute because you know what there's probably other people out there that would love to make the change you've been able to make thanks for teaing that up and by the way we did not script this I Didn't Know Dan was gonna ask totally unscripted I just remember the Tweet somebody tweeted you you know one of our regular engagers you know kind of said hey Pat how do you do it or guys you know yeah so first off uh real quick on the motivation it was July 5th of last year haded this amazing weekend uh on the on the lake with the entire family uh you know had a lot of Tios it was fun I mean it was just amazing and uh I just felt really awful on July 5th and uh I wanted to turn my health around and you know that that that really was the motivation and I ended up seeing a functional Mex uh medic medical doctor Dr U if you're watching uh he is my uh you know I lovingly refer to him as my witch doctor but uh no it it it was a combination of I think four or five things Dan first of all is is Diet uh hardcore hardcore protein uh a lot of fiber uh I don't track fats I don't drink I don't eat a lot of carbs and I was never really a sugar guy so that wasn't an issue I'm taking a lot of supplements right a lot of supplements to help my food help help uh you know Shore up anything I'm not eating uh as I as I start to to fix uh my gut sleep uh big deal I'm religious about my sleep uh I I went to bed at at least one night 8:30 when I was on the West Coast which is 10:30 Central but uh sleep is uh uh sleep is is vital uh I really don't drink any anymore I might have a few sips I might have one uh but it slows me down and it takes away from from what I'm trying to do uh I'm doing uh four four times a week uh 30 minutes in zone two and uh I'm probably going to try to step up V2 Max I'm doing a little bit of weights and then really regulating my stress you know I'm not a worrier but Dan like you and I'm an entrepreneur and I'm on all the time you know why have one business when you can have four and uh what I've really done is just taken time out to to do a timeout and and chill and just uh reflect on life so again this is not medical advice uh get your but but uh it I'm an open book I'll tell you exactly what my script is what I do and what I'm uh what I'm taking because I really want to help other people uh live longer uh and Better Lives as they get into those final 10 years uh re read outlive by Peter AA there's a lot of insights uh that that I take uh from him but uh I have a I have a wingman Dr U here in Austin Texas no that's awesome Pat thanks for sharing that I mean obviously I've been inspired by your journey you know I've sort of had a pretty long and historic relationship with health you know Collegiate athlete um you know went from soccer player to looking like an NFL linebacker um both you know lifting but also you know had children put on the weight like a lot of people did and then you know have have focused on being fit through my career I've fluctuated 10 or 15 pounds you know I can definitely be the leaner you know ABS out ABS not out but I I admire listen Dan you're a motivator dude you motivated me too I should have bad at that I mean you get up at 500 a.m. and you're working out and that just blows my absolute mind and uh we know the DI 820 we know it bestie and the thing about it is that's the part I struggle most with I have no issue with the discipline of getting to the gym I can supplement I do like maybe a few too many Red Bulls you know that's people always say how do you work so much caffeine lots of caffeine yeah um and motivation but at the same time like I said you can lift your your rear end off but if you don't eat right you'll never quite get right and you know I think it's been incredibly impressive good job to you you know depending if you're you know my stage of life I'm in my early 40s you know you're in your middle later part of your 50s and as you and I joke a lot you know don't let don't hold my inexperience against me but at the same time what we have to do to stay fit at 30 versus 40 versus 50 but hey this is not a fitness podcast but you know what I think hopefully everybody out there appreciates a little bit getting to know getting to know the US you know we're episode 221 Pat I mean we've been doing this stuff a long time so I know audience come to follow along it's fun to get to know you out there and we appreciate all you joining in commenting and and being part of our community and vice versa uh we hope you get to know us a bit but we got a great show this week you know we've been on the road we were in Las Vegas we saw the first ever keynote in the sphere um in Las Vegas uh for HP discover but there's some other things we hit Pure Storage accelerate we did a 65 event there we were on the ground we sat down with uh with their CEO Charles Gan Carlo and also a handful of their GMS and then um the market was just crazy this week but it was juneth so we had a day off in the middle of the week but you know we had a three trillion doll Crossing for NVIDIA which just absolutely owns my Twitter feed right now there's like nothing else people are talking about um you know and that was furthered by a huge uh dell uh what was it the Dell X Ai and S uh super micro uh xai deal that's just massive by the way quietly co-pilots uh plus PC started shipping and I know there's been kind of like three Milestones we're going to talk about that this week so we'll hit on a bunch of different things Pat you and I did a ton of media you just got off Yahoo finance rumor on the street crushed it and that was kind of a you know that was a you know an encore to your CNBC hit yesterday I did CNBC over Asia I talked to the New York Times this week and I uh I did an article for the Associated Press so we were busy um out there this week uh back office advising front of office in the media and hey um let's get started though bestie uh look HP discover I mentioned the sphere but there was a lot going on what what is oh sorry not in financial advice people don't do anything we say all right onward HP yeah let's dive in so um a as you would expect the entire conference was about Ai and to be more specific it was about PR private Cloud Ai and and you can essentially you know look at Enterprise AI infrastructure and services in in two buckets right you private public Cloud plays and then private cloud and private Cloud can be on Prem and the Enterprise data center it can be in a Colo it can be a sovereign Cloud uh it you know but but essentially it is uh governed and managed by the Enterprise itself and it's interesting uh HP was in a very difficult position as as it was coming in as one of the last uh Enterprise infrastructure uh companies to come in and do this right we saw IBM uh we saw um Lenovo uh we saw Dell Technologies and then all the Enterprise uh software folks so they had to come out they had to come out bold what they came out with was Nvidia AI Computing by HP and a couple couple key points here first of all very focused on integrated it is a very integrated solution with uh two vendors software it Nvidia uh that brings some of its uh AI enterprise software and also uh hpes right with AI Essentials data Lakehouse and the HP private Cloud control plane so it's literally a turnkey and and the goal here is is Simplicity right and simplicity means AI time to Market and I think Dan uh some of your research has suggested that time to Market is a is a very uh big deal here um the other thing and and the company talked about three clicks to be up and running and I I did a booth tour I don't do a lot of those anymore but I literally saw them start over boot this thing up and literally it's it's all there three clicks uh and and you're there we're going to be doing a detailed uh write up on this you can buy it on Prem or run it manage Service uh via VIA Green Lake um very oh and there's four sizes small medium large and XL where small is inference only going all the way up to XL which is inferencing plus rag plus fine tuning so yeah it it it looked very simple you know while I would have been would have appreciated to get a pre-briefing a lot earlier to think about it took me about 3 to four hours for it to really syn in how this was distinctive out there and I will say Nvidia AI Computing by HP is a differentiated solution uh GA is in the fall which means they must have been working on this for a very uh long time so you and I both got the chance to talk with uh hp's CEO Antonio ner afterwards and some interesting things came out first off they are targeting Enterprise only only with this what I'll call an integrated Appliance with Nvidia okay um which she you know Antonio was very very clear on this now AMD and Intel and red hat and VMware and Cloud era right are very much also part of of an experience if somebody wants to peace part this uh together but clearly uh he has burned the boats uh and it is this is an Nvidia only solution for now and I think you know what is what would it take for AMD and Intel uh to get in there and be part of this is they they need to have software to be able to plug in uh to the stack you know I hate to say it like uh Nvidia so couple questions gonna leave some oxygen for you um where's the training done right if small to XL doesn't include any training where is is this happening um by the way the uh Green Lake for llms has been put on the back burner not a lot of customers uh I get it you know the big action here is on inference Rag and fine-tuning um what's the connective tissue to the public Cloud right if that's where the models are being created uh how do I have some interchange between the public cloud and hp's private cloud and the name Choice was interesting Nvidia is the first uh name in this solution and not HP it's not HP AI Computing with Nvidia it's Nvidia AI Computing by HPD yeah that was an interesting decision Pat U and I'm going to double click on that a bit with you because I agree um first of all you know this will be a theme with me for a bit but we are at this interesting inflection where there is no question that the front end capex the build out of infrastructure for AI is in full effect um we're we're starting to see I believe is companies trying to figure out how to take the product to Market and create consumption at the other end of the spectrum meaning you know doesn't matter how much you know of course meta is using it for itself as a for instance but meta is using it for itself so that when you open up WhatsApp and you've got your little AI assistant in there you're using it and you're increasing use and that's driving more uh data quality of advertising that'll create Revenue so they're spinning up their own sort of vertically integrated AI experience and they're spending a lot of money to do it but they are also creating so much cash flow that that's the big bet they're willing to make the hyperscalers for instance are building the stuff out to be able to make it consumable the way we did compute in the in the first era the private Cloud comes down to there's so much complexity in data and so many unknowns in data that are going to continue to create a challenge for the you know for the industry to be able to implement AI you I talked a lot about IBM last year and they're kind of endtoend uh that included a an AI and a data and a governance uh capability well that type of capability is what I believe we have to bring to scale and so HP basically Antonio told us Antonio ner CEO who we talked to told us like look we're only going to f focus on the hundreds of thousands of Enterprises that could benefit from the consumption of AI remember that that was the demarcation between you know the Dan say that one more time because I think it's super important so Antonio said they only want to focus on the hundreds of thousands of Enterprises that could benefit from you know the consumption of infrastructure and Ai and so that's where they're focused on so these T-shirt size none of their t-shirt sizes are really when they talk about these kind of out of the boox AI Solutions have anything to do with hyperscalers now of course they said for those 10 25 companies that want to consume and buy as many gpus as possible they'll sell those they'll sell super computers to to to Labs that want to buy supercomputers but they're talking about the average Enterprise you know hospital system Bank um you know University that is literally implementing their infrastructure for AI P those folks those folks can buy off the shelf three clicks like you said turn it on and start to make you know meaningful progress in their AI Journey with green like that's what they're talking about by the way that's what Dell's doing in its own way that's what lovo is doing in its own way you even have the you know IBM I mentioned the mware and what they're trying to do so this private AI thing in basically connecting this data that that has to have residents on Prem data that cannot cross borders sovereignty you'll hear about Sovereign clouds a lot they're trying to solve for that problem and of course the cloud providers are going to try to solve for that problem too so do not mistake for a minute that the cloud is not going to try to deal they have hybrid options and offerings but the truth is Pat we've said this endlessly on this podcast right 70 to 75% of Enterprise data lives on Prem so these companies have a good opportunity to provoke the market with AI that can be consumed easily and that is what I believe h pe's mission was kind of ending this topic because I want to keep moving but like the choice of leading with Nvidia to me is interesting but I mean but Antonio didn't mince words they're not gonna they're not gonna build these kind of out-of the boox solutions with anyone else yeah and so I guess making your bet on HP we've had kind of a Continuum of companies wanting to make the whole bet and companies making the minimum bet so far the companies have made the biggest bet have done the best over the long run though I still believe AMD is a player still believe Intel has was going to have a say you know I was quoted Pat on this in my Asia CNBC segment you know they started me off asking me about our friend Dan I is a former guest of the of the show he made this kind of like you know he loves to make these kind of comparatives metaphors or he calls it a party it's 9:00 am and this party goes till 4 you know I jokingly said this is Coachella it's not even the party hasn't even started this thing's going to run for multiple days you know the thing is is we're in the earliest Innings there's so much AI left to go and so this is not a short play for HP it's a long play all right let's move on to the next topic um Pat we've got Apple so you know a couple months ago one of my biggest Banger tweets was kind of when I said what the heck's going on with Vision Pro you know I think scobble piled on and sco's historically been a Robert scovel's been historically a Big Apple but he kind of agreed which was rare and you know anything Apple but it basically like we see it was like a week Pat like on everywhere you'd go every tweet it was some guy popping out of their cyber truck wearing their Vision Pro walking into Starbucks sitting there you know slurping their coffee and doing this and the whole world was supposed to change because of apple and by the way you know I tend to be critical of Apple but then I always you know numerically I often tend to be wrong meaning I I tend to have a belief that like how is this gonna work again but then when it actually does work I'm like I'm wrong but the the thing is is Apple has made the call to cut production or slow or stop in a R&D and and develop M of its Pro two now it's important caveat here it's not stopping production of Vision Pro it's stopping the production of its high-end units the part that we've all seen and experienced so far to focus more effort on a lower-end unit now Pat that's kind of interesting because you know we basically have the Continuum of XR right kind of from the metag glasses you know to the uh you know and there's lower end even than that but then all the way up to a $3,500 Vision Pro which have right and I've only I only used it a few times once with you so I don't have as much experience as you but the the the use I've had with it I felt it was Heavy it was cloy it kind of reminded me of the hollow lens in terms of its size and shape which I understood in the most industrious of of utilization but never really saw the consumer application for it um it felt like the momentum more off it feels like it's a big commitment to carry it's a big commitment to use um you know I've seen people talk about putting it on on a plane but the long and short is that you know I think they sold about 180,000 uh um on the pre-order and then there was some sales that followed it up um but basically the company's going to focus on a $1,500 cutback low-end unit and that's where they're going to head with this thing and and Pat you know I'm still concerned that this thing May bust even at 1500 bucks I just don't know that there's enough value in it so the kind of the long and the short is you know is Apple over it skis on this one you know meaning like did it overcommit here it's put the product out to market now they're kind of stuck and should they have gone with u you should they have focused on the car you know they ditched the car and then they chose the the The Vision Pro um and the second question is you know is is this Market you know this XR Market you know is it just slow to mature so I'll pause there but you know it was very interesting it only took less than really six months from the time it really hit the market to now for it to basically look like the bubble might be bursting on the Vision Pro yeah listen there's been so many people trying to bang their heads against this for for so long and I think everybody collectively thought that Apple would come in and just save the day and you know hey they must have figured it out and to give Apple some credit they did move the ball forward in a uh in a couple uh in a couple you know a couple areas but uh no I mean I I don't even remember the last time I used mine maybe I used it for the first three weeks you know watching some uh videos and and stuff like that but videos great training no and some movies were were amazing on it um and you know the the visual quality was great but even movie watching had its issues you know you could see your hands uh uh if you were watching um uh movie in bed or something um literally you had to have some light on to be able to um control it so uh big issues uh I I actually like apple abandoning the high-end Vision Pro and working on a more affordable version but I would feel more comfortable if I felt like they had nailed the use case uh on the uh on the outset before they went and and uh uh and did that so but here we are um kudos to Apple for moving the ball forward on a couple uh but you know we'll see what happens I mean until I do not now in the Enterprise Market I do believe we could see some pretty huge volumes if they shrank it down and made it and made it it cheaper and I'm not even convinced you would have to make it cheaper just make the battery life uh last longer or have replac batteries for Enterprise um but getting it to let's say A you know sunglasses plus type of of of of of format I think would be would be the right thing to do I one whoa just doing my um Dives Tech no no you look you look good man you know that those are a good looking par Maui Jims dude I I admire how you wear those off-the-shelf glasses they almost look like cardier when they hit your face yeah but you know for Mai Jim glass you found the best so all right buddy let's move on next event on the ground we sprinted from the pazo to the Conrad because over there was pure accelerate Pat and we had the chance to both sit down on the 65 with Charlie this Gian Carlos CEO and chairman we also um you know spent a couple days with the broader executive team what what was your take yes so a few overall themes here uh first of out you know no surprise Ai and and AI was really looked at at two vectors first of all helping Enterprise build out their AI estate and then uh using AI in a co-pilot form in storage operations um and then there was this thing about getting more getting more AI efficient in your operations there was also a theme about Enterprise data set accessibility across all forms of data wherever it's located and Dan you know I love hybrid multicloud fabrics and not only is this a hybrid multicloud fabric but it's also across different types of of data security uh was a big topic uh cyber resiliency and some of the features that the company is adding uh to help Enterprise on that and then upping the game on storage as a service with not only extending it to gpus but also putting in some uh some hardcore slas so just just ticking off some of the announcement uh pure Fusion right this is all about unifying the array uh optimizing storage on the fly across multiple forms of data uh and and obviously uh in in the cloud I talked about the AI co-pilot that they're putting on that to manage and protect data and then related to to Evergreen one for AI it's essentially uh doing storage as a service uh across uh new types of use cases hence uh Enterprise Ai and that's uh the guarantee as they use it guaranteeing storage performance for gpus across training across inference and also uh uh HPC and those are three very different type of of of environment and when it came to security right we talked about the Cyber resiliency and by the way um you know uh the thought here is you know why pay the Cyber resiliency players when you can get it directly integrated into your into your storage platform right also on security there were uh secure application workspaces which essentially this is their kubernetes play uh with Port works right uh securing uh workloads in a multi tency uh environment and then finally uh I talked about these uh these slas is storage is service so service level agreements these are these are guarantees okay not to be confused with the Tommy Boy guarantee for uh break pads here but uh SLA number one right enhanced cyber security and Recovery resilience SLA I won't go into the details uh you can uh read about it um new security uh assessments out there but no a very interesting uh play by the way check out our video uh Charlie makes some very provocative statements about his play into the hyperscalers and of course we get his points of view on all these announcements yeah so you you hit a lot of the the announcements really well patent so I won't be labor some of that what I will say is the company continued to be very focused on its experience the co-pilot very interesting you know I see an opportunity you know the best story we had it was a Sean I don't remember his last name off the top of my head but he was the GM um of one of their business units and he was saying to us about his you know I think he's his brother-in-law or someone that's in the storage actually works in in government I believe in storage and how he was asking about keeping up and you know the idea of these people being able to keep up with the Technology Innovation that's going on so quickly it's almost impossible so I see that as such a great application of a co-pilot to figure out how's the best way to configure to implement to utilize to leverage the technology you know this is a great case of fine-tuning in llm to give and and create benefit right for you know a particular um uh you know a particular uh you know use case path so um the other thing I want to point out is you know I started talking about the spreadsheet you know I said you know I think I said something when we were on with Charlie I said you know all the bean counters are GNA have to start playing with their spreadsheet but if pure can convince one hyperscaler not for its own internal use but to start actually making uh Pure Storage part of their outbound go to market consumption model P that could be an incredible one hyperscaler could be an incredible growth engine and where they're the way they're building the way they're able to accomplish pricing the way they're able to accomplish um durability of their systems and then usability of their systems and experience within their systems um and the way they're built like a layer cake there is a real opportunity because they are so specialized and focused on Pure Storage that they could actually become a resell product through the the hypers scale Chan path that could be massive I mean I don't I mean Charley you could see he kind of lit up when I threw that out there like start adjusting your spreadsheet folks yeah man he did he did and his confidence was like off the rails you almost wonder you know like I said he didn't say anything this is just you know you and I insinuation of what you know it's always like he's got something through it you know like well it's not always I got to tell you though there there was extra special in we've spent a lot of time with Charlie and he seemed the most confident I've ever seen him about the future prospects and what he's doing and how his customer conversations are going you could definitely sense things are moving directionally well for the company and so you know you kind of hit that on all sers add in the The Innovation you're talking about slas building in cyber resiliency um you know creating and fusion P the idea of being able to you know work compati backwards compatible to make all your storage available to that's that's red hot that is red hot and so if you're Pure Storage you have to feel you have to feel really good about because that's a big problem that we're trying to solve and you know you got all these companies trying to solve it in the kind of these companies that are like we're storage but we're not storage data data problems and by the way you can't solve your data problems if unless you solve your storage problems too and and so he's basically saying look we'll let the data bricks do the data bricks stuff we'll you know if you want want to worry about data pipeline or if it's on Prem it can be like a clera or you know can be a mongod DB whoever they are from the data he's basically saying we'll make we'll give you the data prep and Readiness and we'll make it Backward Compatible so you can make all your data available without all the complexity of creating data Lakes yeah and that's like Dude I mean look we've been dealing with this for years let's get all the data in one place like did they just crack the code did they just solve the problem I mean it's it's a really good question all right we got to keep moving on here but good one from Pure very positive event for them um Pat the three trillion B I mean dude you've been on every channel on every Network in the last stop it Dan you're the you're the king of broadcast get get out of here I think you did like six of these uh you did had a the entire last weekend uh you know pontificating on X on on what's GNA happen but it has been pretty amazing I mean in one week three people have had the top spot yeah and it's created a lot of Buzz and interest in the market so we've been brought in you know I I guess I talked to the New York Times I talked to the Associated Press I talked to CNBC in Asia you did CNBC in the US you did Yahoo finance and basically we got ask the same question by everybody yeah it's the same thing and like I said there's so much interest in this so I'm gonna just give my quick breakdown because you know I don't think this is a topic we need to spend a ton of time there's a lot of our commentary already on the record here about this particular topic Pat but here here it is NVIDIA is not on top because of its cells of gpus just be very clear about that the reason there are investors that are confident and the reason that the analysts keep raising the price targets is because of what they've been able to accomplish from a full stack standpoint and then from a partnership standpoint they basically built from top to bottom the entire AI layer and then they've made every single hyperscaler and OEM bet in their bet the farm on Nvidia and so if you look at how Intel gained market share early on with with the CPU and the data center it was saturation and at the point after even when Intel started to be uh see more competition and see more flaws in what it was doing it still took years and years and years to shed Market yeah so if you look at Nvidia and first of all you cannot assume they're going to they're going to botch execution at some point you have to assume they they've executed well they've got a yearly Cadence they're continuing to innovate they're building libraries they're building Partnerships they're building new capabilities like Nims right which is part of solving that private AI thing that makes it more durable where I'm concerned Pat is the saturation they have with a small number of customers is incredible I mean it's so dense with like their five biggest customers um I do think like AMD and what they built with rockome the abstraction layers up with pytorch Jacks that that you can do more development up there I think some of the Enterprise capabilities that you're seeing from companies like IBM and red hat to be able to do private Ai and deploy it in in containers using other Hardware uh create some risk I think pricing power you know for nvidia's valuation to stick they have to keep this pricing power and keep growing at this rate without much disruption so it is possible though and that's the thing is like when people say is it possible yes it's possible are they number one p here's what I'm gonna say if I had to order these three companies I put Microsoft at one it's just so Diversified between its consumer it's co-pilot plus it's Azure AI it's relationship with open AI um the the uh software SAS layer that they have platform layers Windows the stickiness of the mass Market in the devices and then the productivity tools is just so big compan so well-run Apple I think you know obviously is where you know I said something like Jensen will create Ai and then Apple will make it consumable what do I mean by that the most basic consumption of AI in the apps will happen on people's iPhones all day long and I think that is enough to keep apple up there and top but I you know we just talked about the Vision Pro I think Apple's become a bit boring they've lost their Market in Innovation leadership but they know how to make money Tim Cook know knows how to make money and you know what in the market that is really really important so if I had to order them one two three right now Microsoft 1 Nvidia 2 Apple 3 um but having said that Nvidia has I think the biggest risk with how fast it has ascended of having a just as quick descent not back to one trillion or anything but I could see it you know if if the conditions or competition starts to rise I could see it you know back in the two or two and a half in a short order because like I said the the density and concentration risks there are so different than the other two yeah real quick I'm gonna give uh Nvidia opportunities to grow and then some risks here so first and foremost um you're going to see a lot well let me give you precursors of what I'm looking for so in in any like we saw with the do uh boom and bust there's the buildout and then there's the downstream profitability that companies are making off of all that infrastructure build right and when you saw a lot of the dots not making money going out of business now there was a lot of bad VC money going out to these startups but but it was an absolute bust and Cisco at the time was the builder of of internet and they were the Nvidia of the age I think the canary and the coalmine are the so Enterprise software companies uh the saps the service now um the Adobes uh the sales forces um that's one if they can't make incremental profit dollars on this this thing collapses on itself I love that you're saying this no I appreciate that and then there's the consumer uh version of that which are the Google's uh and and the apples and then finally you have the Enterprises that develop their own applications on these and they're trying to drive um incremental profit dollars off that if those don't all come together they don't all three have to hit but two out of three have to hit this thing is going to fall right uh on its on its face so those are the things to look for now uh Nvidia still has a lot of opportunity for growth and the biggest area is Enterprise right exactly what we've been talking about with HP with Dell with Lenovo with Pure Storage um this is the untapped uh infrastructure opportunity uh right now now I do think we've got pretty much a guaranteed six to nine months of infrastructure growth even on the public Cloud side uh so you know that the risk that you're looking at is in you know looking at the next 12 months now with that said reality and perception could be very different things if if if Nvidia stubs its toe somewhere and the perception then that that then all bets are off AMD and Intel are very much competitive factors in the in the public Cloud not so much uh in private Cloud acceleration now uh software is going to be everything we haven't even seen Intel's Enterprise AI GPU that's not going to be out until uh probably late late 2025 yeah I I I'd love the analysis there Pat i' I've probably put four or five long long- winded tweets for all five of my viewers um to I no we got I I'm feel we have 3,300 concurrent X viewers right now I'm feeling pretty good about that sup a appreciate all you tuning in but no in all serious like I've just been Bel laboring consumption layer I keep talking about the consumption layer the consumption layer like who's using this like I get it Coos you know Pat I said that this morning I'm like Coos is sold out through 26 three nanometers sold out through 26 Apple Qualcomm Nvidia AMD they are they are absolutely goingon to make as many AI chips as can be made right now they're going to get sold into these hyperscale data centers but who is consuming it you know like and by the way who makes money who else makes money and that's the question mark we got answer all right we got 10 minutes left I don't want to I don't want to have to Short change any of these great topics Pat our friend Michael Dell put out a tweet that got like 700 million views um but it did it got a he basically announced that they're they are partnering with xai on this mega mega deal Pat yeah it took a while to piece it together but but I do kind of love this new way of getting information out because most of the data or or or the information came out from X Elon responding to people's tweets and Michael with this this initial tweet here here's what I think we've been able to piece together yeah Dell's responsible for half I don't of those racks I don't think uh super micro has confirmed it or or denied it but it but it looks like uh it's them and obviously Nvidia for uh uh the gpus now there is this notion that this will be the largest GPU um cluster uh in existence I think a 100,000 uh gpus I thought there were ones that were as large as that but but maybe maybe that's not true and as we've heard from uh broadcom and Nvidia and Marvell they're talking about a million GPU or a million uh um Asic or accelerator uh cluster so financially right and sometimes you know people are just making this up and it passes my smell test about a million bucks per AI server rack uh with a 100,000 Nvidia gpus around three billion uh dollars supposed to be online gonna take a long time operational by fall of 2025 I don't know I don't know if that's accurate uh or not why would you be shipping racks I don't think it takes you know unlike high performance Computing in a National Labs uh I don't think you're dealing with proprietary stuff uh like uh like a slingshot uh interconnect that uh that you have figure out but net net uh congratulations to Dell uh congratulations Michael uh you guys are crushing it one thing I did want to point out is that the xai deal was reflected in Dell's AI server backlog reported in q1 this wasn't some you know slip that the company made uh getting uh getting this out there so great job yeah so our friend Ed llo from BL Bloomberg shared something from the Bloomberg intelligence team that I think is worth noting they modeled the Dell super micro XI X deal for what it could be worth and so he shared it but he basically said if the deal for grock 3 they estimate there's 100,000 h100 requirement per the comments musk made right assuming you price each server Rec in a million a piece total value of the deal would be about three billion so a billion and a half to Dell billion and a half to to smick 36 GPU per rack 2700 racks 2.7 billion that was the numbers Bloomberg intelligence came up with in in a short it was in a tweet I'll try to drop it in the in the show notes but you know we'll have to do our own modeling P but look I mean huge win just what a huge huge huge win um and this by the way this by the way is why the oems are going all in with Nvidia because this is the deal that only Nvidia can get and they're able to be you know again they all have to add their own value but they're being carried Along by this this is a this is a absolute Tailwind for so many different companies and the the amount of demand it's creating is basically making at least that kind of first wave you know within the first orbit of Nvidia those companies are benefiting um none are making profits like nid yeah but they are benefiting from a revenue standpoint and from a by the way it's not just about Revenue here Pat when you're when you actually are in a inflection in a market like we're in right now it's also about relevancy into the next uh you know into the next era these companies cannot be cannot create a perception like they're being left behind and so they have to be seen as relevant here and so Pat you're great analysis on your end um let's move on to to the next topic uh uh Pat you know our uh president of signal 65 our our you know are one of the two babies that we've had together um we're just kidding people we talked about the third so by the way we've got 65 media we have signal 65 labs and we have signal 65 economics yeah yep yep yep yep two babies one has already had its own baby um but the the bottom line is is that you know Ryan Shrout signal 65 president was out uh at a Best Buy taking pictures checking out the checking out the store displays but the co-pilot plus PCS were front and center in Best Buys around America this week and what I heard Pat was the you know the early data the whispers are volume was good there's a lot of enthusiasm a lot of excitement you know we may have bought a few hundred of them at uh at the signal 65 for our Labs but uh strong demand strong display strong interest you know you saw SAA tweeting about it and pin tweeting about it you saw Christian Oman tweeting about it and this is that first wave now of course like I said there's you know the debates about Intel and meteor Lake and it being an AI PC but this is the co-pilot plus PC the certified Edition this was the moment it came into Market Pat big thing there's been kind of three waves of announcements here so I'm kind of you know it was it was important but tempered in that way because like we had the Microsoft build moment and then we had the computex moment and then now we had the actual go live moment I always kind of joke Pat that like when you would acquire a company and I've done a little bit of that over the last few years you only get to announce it once so you either announce the deal as struck or you announce the deal as closed but you can't really announce both but this is such an exciting moment they've actually managed to announce it three times and so we are in a new era this is by the way when Pat and I have been talking about the consume consumption layer this is one of those key consumption layers not just selling the PCS but what people are going to do with these llms on devices the apps they're going to be able to to to buy whether it's Adobe subscriptions that are going to work better whether it's you know Enterprise tools whether it's improving our social media or video consumption experiences um you know this is where money gets made in those second third and fourth layers of AI beyond the core infrastructure that Nvidia is creating so this is a really cool moment so we're going to get a wave of revenue streams for companies that are one in two tiers removed the oems the odms the builders the the creators of PCS and devices and now we're going to start to see the isvs and the app builders for both consumers and Enterprises and small businesses starting to be able to capitalize on more AI compute power sitting on the device so it's not all in the data center it's so a big moment Pat it's it's exciting I look forward to kind of seeing the the numbers beyond the kind of first day to see you know because this has also had the difference of is this a Vision Pro Plus Vision Pro two minutes buddy Vision Pro moment or is it I'm on the way out this is turning it over to you or is this the beginning of a wave of really big numbers I think it's the ladder yeah I got to tell you I'm going to read a text that I got from an unnamed Source uh related to uh Surface sales some retails saying it's their biggest PC pre-order ever higher than any Mac release ever um so yeah there there are some definitely some volumes here uh so seven folks shipped you had you had uh Microsoft with surfice Asus Dell HP Lenovo aser Samsung shame on U Asus for breaking the the uh embargo and shipping your units out earlier the were supposed to I'm glad to say that um you know the the early reviews are looking great first of all let's Pat let's Pat Ryan in the back uh review tests are showing how accurate the signal 65 testing was uh and you're seeing a 50 50 to 60% M multi-threaded CPU advantage over Apple uh it sure lowers in single core I don't I'm sure there's some value in single core but but not a ton the ridiculous battery like it's ridiculous like 25 hours as some people just you know leaving it at home and I know we've heard that every single year for the past 10 years but it's true this time softare compatibility I need to do a double click on that there were some you know you knew any driver related stuff like some outdated kasperski which by the way is being banned here in North America um but uh uh stuff like games I I spoke with him I I was on stage with kerski right after at Cit interesting I I just thought that was cool I mean I don't know if yeah what no for sure so uh final uh final comments here sorry Dan just trying to work this in before my next meeting uh kudos to Qualcomm and Microsoft Herculean effort three to three to four years you have to place these bets but but but you stuck The Landing now I am selfishly disappointed by recall being pulled back um I'm not convinced Ved it's insecure I feel like the company overreacted get it into Windows Insider now great take pat yeah I agree that was one of the main features and now people aren't going to get it straight away needs needs to happen but Pat great first uh great first few days and thanks for sharing that little Insider bit you know I'd love to get into your text messages for like 10 minutes just to see all the good goodness in there but uh you know that's why you watch our show because we synthesize that goodness because we are lucky enough to have the opportunity to talk to some really really interesting people um every single week but uh Pat you know a great show great conversation always a ton of fun it was great to be back on the road with you I think we have a couple weeks off we may run into each other in New York for just a minute uh but we'll be back on what next week Friday Regular Show same time same place so thank you to all 3,000 plus of you that have tuned in to watch our show this week we appreciate the community hit that subscribe button join us for all of the episodes here of the 65 but Patrick it's time to go say goodbye y'all at us more on Twitter that's what we like
