US-Saudi Investment Forum
Questions on ElonsFAQ asked in this interview (3)
Transcript
0:00ModeratorBut right now we're here to celebrate a historic moment. A moment that yesterday during the dinner and thank you for joining us under the patronage of the honorable President and his Royal Highness the Crown Prince Mossaidi, where we had the pleasure to hear firsthand, this is the greatest alliance between the Kingdom of Saudi Arabia and the United States, where we have joined hands and you have helped us build our energy based economy fueling and energizing the industrial age.
0:36ModeratorAnd now fast forward going to the intelligence age where we can fuel AI factories, robotics, AVs and all of the rest. Speaking of that, let's start with you, Elon, if you don't mind, Jensen, feel free to chime in.
0:52ModeratorYou have a big fascination of something all of us have admired, first order thinking, which Jensen sometimes calls first order scaling, which is an opportunity for how you have dropped the cost of batteries from a thousand per kilowatt hour to sub hundred bucks.
1:12ModeratorAnd right now you're doing the same thing with robotics for actuators with servo rotors and motors. So I want to hear from you, how do you manage to always disrupt every single industry with that thinking?
1:28Elon MuskWell, it's mostly not disruption, it's creation. So with say SpaceX, with reusable rockets, there really weren't any reusable rockets. But the essence of getting, of revolutionizing space travel is reusability.
1:48Elon MuskIf you throw the rocket away every time, the cost of access to space is extremely high. With respect to electric cars, there weren't any electric cars when we started making them.
2:01Elon MuskReally, you couldn't buy any to the best of my knowledge. So with Tesla, we wanted to make electric cars compelling and affordable. That was the goal. With respect to humanoid robotics, there are no useful humanoid robotic robots at this point.
2:19Elon MuskThere are sort of gimmicks, but there are no actually useful humanoid robots. And I think Tesla is going to make the first actually useful humanoid robots. And this will be quite a revolution.
2:30Elon MuskAnd I think something that will, that everyone will want. Because I always think of like, who wouldn't want their own personal C3PO? R2D2. Oh yeah, of course everyone would want one, right?
2:45Elon MuskAnd then there would be many in industry providing products and services. This is why I say that humanoid robots will be the biggest industry or the biggest product ever, bigger than cell phones or anything else, because everyone's going to want one or maybe more than one.
3:02Elon MuskAnd there'll be many in industry.
3:05Jensen HuangI just want R2D2 in C3PO's body.
3:09Elon MuskYeah, there you go. Well, I mean a humanoid robot would be better than R2D2 and C3VO combined times 10. Yeah. So the, and you know people often talk about sort of eliminating poverty and that kind of thing, but really the.
3:27Elon MuskHow long have they been talking about that? There's lots of Talk, lots of NGOs sort of trying to do these things, but really not succeeding. And the evidence speaks for itself.
3:42Elon MuskBut AI and humanoid robots will actually eliminate poverty and Tesla won't be the only one that makes them. I think Tesla will pioneer this, but there will be many other companies that make humanoid robots.
3:53Elon MuskBut there is only basically one way to make everyone wealthy and that is AI and robotics.
4:00ModeratorAnd we can't talk about robotics without AI factories. And yesterday was such a historic day for the two nations, but also for all of us where we celebrate the AI strategic partnership with the US Signed witnessed by the honorable President and His Royal Highness about how we are committing our capital energy land to energize the AI US ecosystem to be able to build inference node training nodes and to be the most AI enabled nation.
4:34ModeratorWith that announcement, tell me what's, what's next in AI factories? Jensen There's a, there's a beautiful story
4:41Jensen Huangabout how Saudi Arabia is building AI refineries now building AI factor oil refineries to AI factors.
4:47ModeratorI love that.
4:48Jensen HuangI, you know, I've said that AI is an infrastructure and the reason for that, of course we understand AI from the perspective of the technology and how it's revolutionizing every industry.
4:59Jensen HuangDigital intelligence of course has applications into every, every field and so it's going to be used by every company, every industry, every country. In that way it's foundational and therefore it's part of infrastructure.
5:14Jensen HuangWhat is new about AI from a computer science perspective is that the way computing was done in the past was largely retrieval based computing. Somebody typed in a story or somebody created a piece of art, or came up with four versions of a digital ad, or it's all pre built by somebody which is then using a system to retrieve the appropriate version for you.
5:42Jensen HuangIt's a retrieval based computing model. Hadoop and many of the frameworks and operating systems of the past, all designed to retrieve the appropriate information for you. But today software is going to be generated in real time.
5:58Jensen HuangIt's generative, based on the context, based on the circumstance, based on who you are, based on the problem you asked, based on your prompt, it will generate unique content for you every single time.
6:09Jensen HuangFor everybody it's unique. When you use Grok, every time you use it is different, right? Based on the prompt that you give it and based on the circumstance. And so therefore it used to be retrieval based, today it's generative.
6:25Jensen HuangAnd if it's generative and every time is different, then you need AI factories all over the world to generate the content in real time, which is the reason why you need AI factories.
6:36Jensen HuangAnd this is a unique way of doing computation. But the benefit of course, is that everything isn't preconceived and pre documented and it's contextually sensible and therefore intelligent.
6:48ModeratorSo AI factories and robotics, and we heard it yesterday from his Royal Highness, his vision how to augment our workforce with roughly tens of millions of robotics to be able to infuse the next wave of productivity and progress.
7:04ModeratorBut this scares a lot of folks here when it comes to the future of jobs. And so let's hear about your thoughts, Elon and Jensen, on that.
7:14Jensen HuangSure.
7:14Elon MuskWell, if you say like in the long term, where will things end up? Long term? I don't know what long term is. Maybe it's 10, 20 years, something like that.
7:24Elon MuskFor me, that's long term. My prediction is that work will be optional. Optional, optional. So we'll take that. Yeah, I mean it'll be like playing sports or a video game or something like that.
7:42Elon MuskIf you want to work, you know, in the same way, like you can, you can go to the store and just buy some vegetables or you could grow vegetables in your backyard.
7:53Elon MuskIt's much harder to grow vegetables in your backyard. But some people still do it because they like growing, growing vegetables. That will be what work is like, optional. And between now and then, there's actually a lot of work to get to that point.
8:08Elon MuskAnd I always recommend people read, read Yen Bank's culture books to get a sense for what a probable positive AI future is like. And interestingly, in those books, money is no longer doesn't exist.
8:26Elon MuskIt's kind of interesting. And I, my guess is in if you go out long enough, assuming there's a continued improvement in AI and robotics, which seems likely, the money will stop being relevant at some point in the future.
8:42Elon MuskNow there will still be constraints on power, like electricity and mass. The fundamental physics elements will still be constraints, but I think at some point currency becomes irrelevant.
9:02ModeratorJensen, any thoughts?
9:09Elon MuskBy the way, the Nvidia earnings call is later today.
9:14Jensen HuangAnd by the way, since currency is rolling.
9:17Elon MuskCheers.
9:22Jensen HuangElon just wants to share with you some breaking news.
9:31Jensen HuangThe two of us who like to share some breaking news. Let's see, I would say there's different horizons. You could look at everybody's jobs will be different, I think that's for sure.
9:44Jensen HuangHow the students learn will be different, how people do their work will be different, obviously, because a lot of the things that we do mundanely or arduously or very difficultly are going to be done very simply.
9:58Jensen HuangAnd so we're going to be more productive from that sense. One of the things that I will say is that for most people or company, if your life becomes more productive and if the things that you're doing with great difficulty become simpler, it is very likely because you have so many ideas, you'll have more time to go pursue things.
10:20Jensen HuangIt is my guess that Elon will be busier as a result of AI. I'm going to be busier as a result of AI. And the reason for that is because we have so many ideas we want to pursue, so many things that we still have in our backlog inside our company that we can go pursue.
10:34Jensen HuangIf we were more productive, we can get to those things faster. And so in the near term, I would say that there is every evidence that we will be more productive and yet still be busier because we have so many ideas.
10:47Jensen HuangOne thing that I will say, give you some evidence is that, and I was just telling Elon about this earlier, radiology, for example, has largely been converted to AI driven radiology.
11:00Jensen HuangAnd there's some really great companies doing that. And the surprising thing is the prediction that all radiologists would be the first jobs to go was exactly the opposite. The trend shows that there are more radiologists being hired now as a result of AI.
11:17Jensen HuangAnd the reason for that, if you take a step back, it's because the goal of a radiologist is not to study the images. The goal of a radiologist is to diagnose a disease.
11:28Jensen HuangNow the studying of the images became so productive and they could study more images, study more modalities, spend more time with the patients, and as a result, they were actually accepting more patients.
11:40Jensen HuangWe're doing more radiology all around the world. We're doing a better job with diagnosing disease. And so that's kind of the near term outcome of AI and productivity. And we'll see what happens long term when currency doesn't matter anymore.
11:59Jensen HuangJust, you know, let me know right before.
12:04Elon MuskYou'll see it coming. You'll see it coming.
12:08Jensen HuangWe text often, so just. Yeah, we do. Yeah, just text it off. Yeah, let me know.
12:13ModeratorI kind of agree with both of you. Because if you look at every technological trend, every general purpose technology has been net new positive for the globe for Humanity and so forth.
12:25ModeratorAnd let me share with you two.
12:26Jensen HuangCan I say, your excellency, I think it's precisely the reason, the reason for that is because all the great ideas from. From innovators like Elon, you have so many good ideas that.
12:37ModeratorAnd Jensen as well.
12:38Jensen HuangYeah, well, yeah. Thank you.
12:40ModeratorSo let me share with you two stories from two Saudi innovators in collaboration with a lot of great. The great work that Nvidia does, that GROK does. One is.
12:53ModeratorAll right, let's say that again. What is Professor Omariagi,
13:03Elon Muskit might need to. Might need to move the mic
13:08Moderatorhere.
13:08Jensen HuangCome on, we'll share this one. Get close.
13:14ModeratorLet's try this one more time. So one of them is Professor Omar Yagi, who's the first American Saudi to. To win a Nobel Prize in creating new chemistry. And the way he has done that, he has leveraged your AI accelerators and models like Groq to be able to create new chemistry when it comes to metal organic frameworks, those are metal ions that are positively charged with organic linkers to be able to effectively create a sponge with 0.33nm pores to capture water from air and also to capture carbon dioxide.
13:51ModeratorThe second story has also to do with AI accelerated by Nvidia and with models like Groq, which is Nanopalm, which is effectively creating a nanorobot 500nm by 1000nm to be able to do gene editing, leveraging the CRISPR technology to take out sickle cell disease.
14:12ModeratorNow, in both these instances, they originated 20 years ago in research, but AI was able to really accelerate the outcomes and the outputs such that we can move into new value pools.
14:25ModeratorSo I think with every technological trend, humanity is going to always manage to shift to new value pools when it comes to workforce and productivity. But we have some great announcements to talk about here today.
14:38ModeratorLet's begin with you, Elon. The things that we're doing with Xai.
14:41Elon MuskYeah, we're excited to announce that we're doing a 500 megawatt. I mean, yeah, 500.
14:49Jensen HuangSorry, 500 megawatt.
14:52Elon Musk500 megawatt. Yeah,
14:56Moderatorwe're doing 500.
14:59Elon MuskSorry, yeah, yeah, yeah, 500 gigawatt one. I have to wait. So that'll be eight bazillion trillion dollars.
15:17Elon MuskSo yeah, we're doing a XAI and the Kingdom of Saudi Arabia are doing
15:24Moderatorhumane 500 megawatts, starting with 50 megawatts phase one. And we're doing it with Nvidia. Congratulations to the humane team to target team Such a fantastic job, Jensen. I think we're also doing some great announcements this week.
15:39Jensen HuangWe are announcing all kinds of things. Our partnership with Humane is going incredibly well. First of all, we worked together to get this company started and off the ground and just got an incredible customer with Elon.
15:57Jensen HuangCould you imagine a startup company, approximately $0 billion in revenues, now going to build a data center for Elon? 500 megawatts is gigantic. This company is off the charts right away.
16:11Jensen HuangIn addition to that, we're working. Aws, as you know, is also Congratulations
16:18Moderatorto the humane team with AWS starting with 100 megawatts with a gigawatt ambition and counting.
16:26Jensen HuangSo AWS is also coming to Humane. We're working with Humane on Omniverse Digital Twins. As you know, that AI is not just, well, just agentic AI and chatbots and cognitive AI is incredibly important to the world.
16:43Jensen HuangBut AI applies to everything. Chemicals and proteins and genes and physics and fluid dynamics and particles, and of course, robotics and activation. And. And we created this world called Omniverse, where robots can learn how to be good robots.
16:57Jensen HuangAnd it's physically based. It obeys the laws of physics, so robots can learn in these environments. And we're working with Humane to apply Omniverse to all kinds of digital factories and robotics and warehouses and things like that.
17:12Jensen HuangAnd so that's another. We're also working in Saudi Arabia to build supercomputers to simulate quantum computers and using our computers to be the controller and the error correction. Quantum error correction requires an enormous amount of computation.
17:30Jensen HuangAnd so we're doing a lot of great work there too. So a big partnership with Humane. They're off the charts, off the ground and off the charts at the same time.
17:38ModeratorThis is how we walk the talk in the Kingdom of Saudi Arabia in partnership with the US Yesterday, the President and His Royal Highness announced the AI Strategic framework and partnership.
17:50ModeratorToday, we're going big with Elon and Jensen. So thank you for those opportunities.
18:00ModeratorNow they told me I have time for two last questions. So last night at the dinner, I got a number of questions because it seems that the schedule leaked and everybody was giving me hints about the last two questions I'm going to do.
18:15ModeratorSo the first one was for the. You, Elon. And there's a big one for you, Jensen. So prepare for that one. AI in space. Is that possible?
18:27Elon MuskYes. If. If civilization continues, which it probably will, then AI in space is inevitable.
18:39Elon MuskYou know, I always have to, like, preface that. You know, we shouldn't take civilization for granted. We need to make sure to take care to ensure that civilization has an upward arc.
18:50Elon MuskI mean, any student of history knows that civilization does not always have an upward arc. And in fact civilizations have life cycles. So hopefully we are in a strong upward arc.
19:00Elon MuskI think we are for now. But we don't want to take that for granted or be complacent. But in order to. The way to think of AI in space is that in order to achieve any meaningful percentage of a Kardashev to scale civilization where you're using even a millionth, a millionth of the sun's energy, you must have solar powered AI satellites in deep space.
19:26Elon MuskSo once you realize, like, once you think in terms of a Kardashev 2 scale civilization, which is what percentage of the sun's energy are you turning it to useful work?
19:38Elon MuskThen you, then it becomes obvious that space is overwhelmingly what matters. Overwhelmingly. The sun only receives 1, roughly 1, 2 billionth of the Earth only receives roughly 12 billionth of the Sun's energy.
19:55Elon MuskSo if you want to have something that is, say, a million times more energy than Earth could possibly, possibly produce, you must go into space. And so this is where it's kind of handy to have a space company, I guess, sell the book Easier to
20:15Jensen HuangCool Chips in Space too.
20:17Elon MuskYes.
20:18Jensen HuangEasier to Cool chips in space.
20:19Elon MuskYes. There's definitely no water in space. So you're going to have to do something that doesn't involve water.
20:24Jensen HuangJust hang out.
20:25Elon MuskWell, you just got to radiate.
20:27Jensen HuangThat's right.
20:29Elon MuskSo my estimate is that actually that, that the cost of, of electricity, like the cost effectiveness of AI in space, will be overwhelmingly better than AI on the ground so far.
20:45Elon MuskLong before you exhaust potential energy sources on Earth. Long, long before. Meaning like, I think even perhaps in the four or five year time frame, the lowest cost way to do AI compute will be with solar powered AI satellites.
21:04Elon MuskSo I'd say not more than five years from now. Wow.
21:09Jensen HuangAnd just look at the supercomputers we're building together. Let's say each one of the racks is 2 tons. Out of that 2 tons, 1.95 of it is probably for cooling, right?
21:19Elon MuskOh yeah.
21:20Jensen HuangJust imagine how tiny that little supercomputer is, right? Each one of these GB300 racks and just be a little tiny thing and
21:27Elon Muskjust electricity generation is already becoming a challenge. So if you start doing any kind of scaling for both electricity generation and cooling, you realize, okay, space is incredibly compelling.
21:42Elon MuskSo like, let's say you wanted to do, I don't know, 2 or 300 gigawatts per year of AI compute. It's very difficult to do that on earth. So the US average electricity usage last time I checked was around 460 gigawatts per year.
22:03Elon MuskAverage usage. So something like say if you're doing 300 gigawatts a year, that would be like 2/3 of US electricity production per year. Year. There's no way you're building power plants at that level.
22:20Elon MuskAnd if you take it up to say a terawatt per year. Impossible.
22:23Jensen HuangYeah.
22:24Elon MuskLike you have to do that in space. There, there just is. There just is no way to do a terawatt per year on Earth. And in space you've got continuous solar, you've got, you don't, you actually don't need batteries because it's always sunny in space.
22:43Jensen HuangExactly.
22:44Elon MuskAnd the solar panels actually become cheaper because you don't need glass or framing and the cooling is just radiative. So that's why I think that's the dream. Yes, that's the dream.
22:57ModeratorSo Jensen, everybody, last night was asking me and I'm mindful it's earnings call for you today. So I'm going to say this delicately. Everybody has been asking me to ask you, are we going to have an AI bubble?
23:11Jensen HuangThat's the last question.
23:13ModeratorAll right,
23:16Jensen Huangall right, let me. Well, let me just tell you what we see. Okay, so, so I think it's really important when you look at what's happening around the world and go back to first principles of what's happening in computer science and computing, there are three things that that's happening.
23:29Jensen HuangThe first thing is that we all know that Moore's Laws run its course and the ability that the amount of demand for computing versus the amount of computation we can get out of general purpose computing is really challenging.
23:40Jensen HuangAnd so the world's been moving to accelerated computing for some time. We've been pushing this now for some over 20 years. Let me give you one statistic. I was just at supercomputing six years ago, CPUs were 90% of the world's supercomputers, top 500 supercomputers six years ago.
24:00Jensen HuangThis year, less than 15% went from 90% to 10%. And meanwhile, accelerated computing went from the other way, 10% to now 90%. Okay, so you're seeing that inflection point, the transition in high performance computing from general purpose computing to accelerated compute.
24:18Jensen HuangWell, one of the, one of the most data intensive, one of the most intensive computation things that the world does in cloud is data processing. Several hundred billion dollars of Computation is done on just raw data processing.
24:30Jensen HuangHad nothing to do with AI, just SQL processing. Data frames, you know, everybody's names, address, their sex, their age, where they live, you know, how much money they make.
24:40Jensen HuangAll of that sits into a data frame. And that data frame drives the world today, whether it's in banking or you know, whether it's in credit cards or of course e commerce.
24:49Jensen HuangAnd everything from ad recommendation and everything is driven off of that data frame. That data frame costs hundreds of billions of dollars to go computer. And so that's the number one thing end of moore's law.
24:59Jensen HuangThe second thing is generative AI. The most important application of the last 15 years is called Rexis Recommender Systems. How do we know what information to recommend to us in a social feed?
25:15Jensen HuangHow do you know what ad to recommend to somebody, what book to recommend, what movie to recommend? The world is. The Internet is so gigantic without a recommender system that that little tiny of us will have no chance I've ever seen the right information.
25:27Jensen HuangThat Rexis is the engine of the Internet today that's going generative AI. It used to be running on CPUs, now it runs on GPUs, which then says the third thing when if you just look at those two applications, many of the Internet companies can build enormous number of GPU supercomputers just doing that.
25:48Jensen HuangOf course the it creates this, the third opportunity on top of it, which is agentic AI. This is Grok and this is OpenAI. This is anthropic, you know, this is Gemini.
25:57Jensen HuangAgentic AI sits on top of that. But don't, you know, don't forget to think about what is happening above. Underneath what everybody sees as AI today, there's a whole movement of computing from general purpose computing to accelerated computing.
26:13Jensen HuangAnd that if you just, if you take that into consideration, you'll come to the conclusion that in fact what is left over to fuel that revolutionary agentic AI is not only substantially less than you thought and all of it justified.
26:29ModeratorWell, I was just informed by the team that my boss and your bosses is going to talk next. The honorable President and his Royal Highness the Crown Prince. And hence we ran out of time.
26:40ModeratorBut in essence, this is such so much love for you, Elon and Jensen. But this in essence is a 92 alliance that shifted from energy to digital to the intelligence age.
26:59ModeratorPowered by pioneers such as Elon and Jensen to serve humanity and create on a net, new basis, new economies, new jobs and a better future for humanity. Powered by the Kingdom of Saudi Arabia and the United States, thank you for a lifetime partnership and friendship.
27:16ModeratorThank you, Elon. Thank you, Jensen.
27:18Elon MuskThank you.
27:21ModeratorAll right.