00:00 Speaker A
This is an interesting time in tech. We saw the Nvidia Intel news.
00:03 Speaker A
Is this a good thing to see these tie-ups like this?
00:07 Gary
Well, there’s some good in this, always. Look, the United States, as we know,
00:14 Gary
has to become a chip manufacturer. We cannot be dependent on the rest of the world for chips. Look, we came out of COVID
00:23 Gary
understanding the supply chain better than we ever did before. We understood that without chips being imported to the United States,
00:33 Gary
our economy, our manufacturing economy shut down. You literally could not buy most of the things that we want in this country, even simple things as toasters today, somehow have to have chips.
00:50 Speaker A
We got to connect to your phone, Gary. I need to know when my toast is done.
00:52 Gary
I I guess you have to hit your phone in bed to put the toast down in the morning so you you can do that. So, look, we now are in an economy where everything we buy has a chip in it.
01:03 Gary
We can’t be beholden to the rest of the world. So, to the extent that the federal government is getting involved and encouraging chip manufacturing in the United States. And this started in the last administration with the chips Act and we continue to press on this independence of vital necessity goods in this country, I do think is a good thing.
01:21 Speaker A
Do you view it as the administration picking winners and losers?
01:24 Gary
I hope the administration is not picking winners and losers. It’s not their job to pick winners and losers. What it is the the federal government’s job is is to protect the citizens, protect our safety, protect our well-being. And we know that chips are a vital part of protecting our our our country. You know, simple missiles today have 300 plus chips in them.
01:44 Gary
So to be to be able to defend ourselves, to be able to build military equipment, we need to be in the chip manufacturing business here. So that I do applaud that we understand the risk of not having chip manufacturing in the United States.
01:54 Speaker A
IBM investing uh just billions of dollars in in AI and its own infrastructure. Where do you think we are in the AI CAPEX build out?
02:01 Gary
You know, look, it’s it’s the AI CAPEX build is pretty transparent. There’s an enormous amount of money being spent in data centers. These data centers will come on
02:09 Gary
sort of over the next three to four to five years. You know, we’ll continue to see more and more use of AI. What what what’s going on right now is, you know, people are using AI, but they’re using sort of independent software, independent programs to solve a specific AI problem.
02:19 Speaker A
Like an agent. Yeah.
02:20 Gary
Yeah, like an agent.
02:21 Speaker A
Do my payroll.
02:22 Gary
Oh, do my payroll, uh handle my HR, read my, read my documents, help me with my tax return, help me with my tax returns.
02:30 Gary
Where I believe this is going, where IBM believes this is going, this is going to an enterprise-wide solution where all of these AI programs, these in these these, um, AI facilities will work together. They’ll be more coherently, more cohesively related and they’ll have a big infrastructure behind that.
02:49 Gary
And look, that’s going to lead us into a really interesting world as people get their data and databases in a more coherent place, and that’s what it takes to make I I work. It’s going to lead us into a quantum quantum revolution. We think by the end of this decade, we’re going to have quantum, you know, be a major part of this equation.
