David Friedberg

Keep an eye on that one.

Can I tell you what's going to make this open source, closed source battle even worse?

Because effectively what this is is the US versus China.

The US is closed and China is open, at least at the scaled models that work.

No, no, no, you're right.

I'm just saying today, if you look at the conditions on the field, the closed source, highly performant models are American.

The open source, highly performant models are Chinese.

And you would say, okay, well, what is the next downstream thing?

It's what Freeberg mentioned, which is the energy and the cost of generating these output tokens.

And I talked to somebody yesterday who runs a huge energy business.

And I have to tell you, it's not in a good place.

Meaning you saw, I think this week, where the residents of Indianapolis were able to reject or get their city to reject a billion dollar data center that Google was going to build near Indianapolis, largely because of concerns of price inflation around electricity.

And what this energy CEO told me

is look, the next five years are baked.

And if we don't find some compelling solves, and I'll tell you what the two ideas were, but if we don't find some compelling solves, electricity rates will double in the next five years.

Now, if you think about how then consumers will view the use of AI,

And then if you think about companies like us and others trying to use the cheapest version so that we are minimally impacting the downstream cost of these things, because it will become an energy problem, this is a very complicated thing.

Now, his idea, and it's a huge PR crisis, because if you want to take big tech, which is already viewed negatively, and make their perception even worse, if you start to finger point to them and say, these guys are the reason my electricity costs have doubled in the last five years, that is no bueno for them.

And they need to find an off-ramp ASAP.

There are two off-ramps that he suggested, which I think are worth considering.