>>> NVIDIA'S A.I. DEVELOPERS CONFERENCE IS UNDER WAY. CEO JENSEN HUANG UNVEILING THE NEWEST CHIPS AT THE PACKED HOUSE IN SAN JOSE YESTERDAY. >> HOPPER IS FANTASTIC, BUT WE NEED BIGGER GPUs. SO, LADIES AND GENTLEMEN, I WOULD LIKE TO INTRODUCE YOU TO A VERY, VERY BIG GPU. THIS IS HOPPER. HOPPER CHANGED THE WORLD. THIS IS BLACKWELL. >> TOLD YOU. ACTUALLY, THE GUY'S NAME IS DAVID HAROLD BLACKWELL. IT WASN'T RICHARD BLACKWELL, THE FASHIONISTA. THE GPU HAS ADVANTAGES IN TERMS OF PERFORMANCE AND ENERGY USAGE. ANYBODY WHO IS ANYBODY WILL GET THIS NEW LINE AND UPGRADE FROM HOPPER. CISCO, DELL, HP, LENOVO, SUPER MICRO WILL DELIVER SERVICE BASED ON THE BLACKWELL LINEUP. OUR NEXT GUEST IS THE TECH INVESTOR WHO MIGHT UNDERSTAND THIS. HE OWNS NVIDIA AND JOINS US NOW. PAUL MEEKS AT HARVEST PORTFOLIO MANAGEMENT. I DON'T KNOW WHAT YOU ARE, PAUL. DO YOU HAVE AN ENGINEERING DEGREE? FOR OUR VIEWERS TO UNDERSTAND, OBVIOUSLY, BECKY AND I ARE UP TO SPEED ON THIS. CAN YOU JUST MAKE IT EASIER FOR PEOPLE THAT MAY NOT BE AS IN THE LOOP AS US OF WHAT IS GOING ON? >> JOE, BEFORE THE COMMERCIAL BREAK, YOU WENT THROUGH THE SPECS AND YOU SOUNDED NERDY. IT IS A LARGER AND PHYSICAL GPU. IT USES TWO DIE TECHNIQUES FROM TAIWAN SEMICONDUCTOR. YOU THINK ABOUT IT. IT WILL PROVIDE ABOUT 5 X THE PERFORMANCE OF THE LATEST H 100 HOPPER CHIP. EVENTUALLY, MORE AND MORE HORSEPOWER. THEY ARE MAKING A BET THAT THERE'S GOING TO BE A NEVER ENDING DESIRE FOR THESE CHIPS AS WE CONTINUE TO BUILD OUT THE LARGE LANGUAGE MODELS. WE WILL SEE WHAT HAPPENS IN ABOUT THREE HOURS TODAY AS THEY WILL HAVE A MEETING FOR THE WALL STREET ANALYSTS LIKE ME AND WE WILL BE ABLE TO GET SOME GUIDANCE TO THE FINANCIAL IMPACT. ALTHOUGH THE SPECS HERE ARE IMPRESSIVE, BUT THEY ALREADY HAVE ABOUT 90% MARKET SHARE IN THE CHIPS, THE GPUs ARE BUILDING LARGE LANGUAGE MODELS. MAYBE THIS BRINGS A GREATER PROFITABILITY, BUT THEY ARE ESSENTIALLY ALREADY OWNING THE PIE. WHAT THEY ANNOUNCED YESTERDAY WAS SNAPPY. NEXT, WE CAN GET INTO THE NIM SOFTWARE THEY ANNOUNCED. WHAT WE NEED TO HEAR IS FOR THEM TO KEEP THEIR TECHNOLOGY LEAD SPECIFICALLY OVER ADVANCED MICRO DEVICES. AT LEAST LAST NIGHT OR YESTERDAY AFTERNOON, I THINK THEY CHECKED THOSE BOXES WHICH THEY NEEDED TO CHECK BECAUSE THE STOCK IS UP FIVEFOLD SINCE THE INTRODUCTION OF CHATGPT A COUPLE OF YEARS AGO. >> BETTER MARGINS OR BETTER PROFITS ON A STOCK THAT PEOPLE SAY IS NOT THAT EXPENSIVE RELATIVE TO OTHER TECHNOLOGY STOCKS. THE STOCK IS OFF A LITTLE BIT, BUT THAT COULD BE THE RUN-UP WHICH WAS SO SIGNIFICANT. YOU SAID SOFTWARE IS ALSO TALKING ABOUT THE OMNIVERSE? THERE IS MORE THAN THE BLACKWELL TECHNOLOGY THAT WAS INTRODUCED? >> THEY OFFERED SOFTWARE FOR INFERENCE. IN THE A.I. SUPPLY CHAIN, YOU START WITH THE LARGE LANGUAGE MODEL BUILDING. THAT'S WHAT'S GOING TO CONTINUE TO HAPPEN FOR ANOTHER YEAR OR SO. YOU TAKE ALL OF THAT GREAT DATA THAT YOU CRUNCHED AND YOU TRY TO CREATE SOME PATTERNS THAT COULD BE USED BY FOLKS. WHAT THEY WANT TO DO IS MAKE SURE SINCE THEY ALREADY OWN THE PIE FOR LARGE LANGUAGE MODEL BUILDING THAT THEY KEEP THEIR LEAD IN THE NEXT STAGE INFERENCE. THEY ANNOUNCED NIM SOFTWARE. M N-I-M. THIS WILL CHARGE $4,500 PER YEAR FOR A LICENSE FEE TO BETTER USE THEIR CHIPS IN THE INFERENCE STAGE WHICH IS THE NEXT STAGE OF A.I. THE PRICE POINT IS NOT GOING TO DRIVE REVENUE LIKE THE CHIPS DID, BUT THE NICE THING ABOUT THE SOFTWARE LICENSING MODEL IS THERE ARE NO HFMANUFACTURING COSTS. POUND FOR POUND, IT IS MORE PROFITABLE. IT IS NOT A ONE-TWO PUNCH THAT IS NECESSARY. >> THE IDEA THEY WILL BE MORE THAN A CHIPMAKER. THE IDEA YOU COULD BECOME MORE LIKE A MICROSOFT OR SOMEBODY WITH THE SOFTWARE ASPECTS TO THAT. THAT CHANGES THE EQUATION TO SOME EXTENT AND THE PROFITABILITY OF THIS COMPANY. >> BECKY, THAT'S A GREAT POINT. WHAT THEY'RE TRYING TO DO IS BECOME THE A.I. ECOSYSTEM. KIND OF LIKE APPLE SUCCESSFULLY DID WITH THE WALLED GARDEN. YOU HAD TO HAVE THE PHONE AND THE WATCH AND THE EARBUDS. THIS IS WHAT NVIDIA IS TRYING TO DO HERE. BUILD A WALLED GARDEN ECOSYSTEM IN A.I. THAT WILL BE DURABLE FOR YEARS THAT DOESN'T JUST INCLUDE SEVERAL ITERATIONS OF THE FASTEST GPUs, BUT
