US Working on 'AI Package' to Export

Key Takeaways

Michael, I got to get your take. It was perhaps jovial in nature coming from the president of the United States, but what did you make of the fact that he had once upon a time considered even thinking of breaking up Nvidia? >> I think it was a tremendous day for the country and for AI more broadly. We definitively turned the page on what the last administration had tried to do to really hamper this industry and shackle it with uh with a high level of regulation that didn't allow it to fully spread its wings. Uh what was tremendous about the event yesterday was not only the president's speech but the the participation of the vice president himself and five cabinet secretaries. This was a big moment for the American industry and it really showed how committed this administration is to ensuring continued American dominance in this critical technology. Mr. Kos, you helped to to write this document and form the policy alongside the advisers David Saxs and Shirram Krishnan who will be on the program later today. What I got from corporate America is that they feel the action plan is actionable. It's heavily rooted in deregulation and expediting permits. Of the 23 pages, which section do you think gets enacted by this administration first? >> Well, we are racing ahead on all of them. I think the one piece that you didn't mention which I think is also very critically important is this focus on exporting American AI. This idea that we want the entire world to be running on American artificial intelligence stack that is our cloud, our chips, our algorithms, all of that needs to be exported and packaged to the world so that we become the ecosystem of choice globally. And that is something that Secretary Lutnik and uh Secretary of State Rubio have been tasked to to work on and put together for the country. So between that and our very ambitious agenda on the actual infrastructure that's going to empower that's going to power this there's a lot of work for us to get done in the next few months. Mr. Katzios what's the rule making process from here for exporting chips in particular. The way that your your colleague Mr. Lutnik put it was that the administration is comfortable with large clusters going to third parties, foreign countries, but American company access to that stack would be part of the evaluation process. Do we get a successor to the diffusion rule? Have you started drawing up some guidelines? So that's being handled by the by BIS and Secretary Lutnik at Commerce. But generally speaking, what we're going to be doing and through the executive order the president signed, the Department of Commerce is tasked to work with American industry to create AI packages. These are packages that we then can work with the State Department to go out and export around the world. And part of that because commerce will be at the table when these packages are being created with our great chip companies and our algorithm companies and our model companies. We'll be able to have packages which we believe will be able to make it through the export control restrictions of a commerce department and make them actually extraordinarily viable and very interesting and very appealing to lots of countries around the world who all are racing and very excited to have AI and deliver AI for their people. >> And boy are the US companies racing for AI. The investment that we hear coming from Alphabet for example upping by another 10 billion in terms of capital expenditure. These companies though are huge. Alphabet potentially facing a breakup. We hear about Jug Meta in August. We also know that Meta itself is also being analyzed. Will these companies always be allowed to be huge if the AI innovation is the win? >> You know that's not something that that I particularly focus on or look at. I think you have to talk to the Department of Justice and others. To be honest, I think we are very blessed in the United States. We have the greatest technology companies in the world that are delivering the greatest products in the world that citizens in the world all want to use. If you just look at the numbers of usage for our large language model builders, it's absolutely incredible. The entire world wants to run American rails and we need to make sure that the regulations are out of the way to make sure that we can get it out there not only to Americans but also globally. And I thought what was really interesting was the comments coming from President Trump while announcing the AI acts in signing the executive orders was one of copyright and almost trying to push back on this need to be compensated if you're someone who's made the works that the ultimate models have been trained upon. What do you make of copyright and will that be in legislation? >> Yes, you bring up a good point. In the president's speech, the president discussed the importance of being able to use materials in the training of these models. And this is something that is going back and forth and discussed a lot globally. And I think we're excited to kind of see where that all plays out. Ultimately speaking, what we want to do is be able to allow training to happen here in the United States. And that's something that is being sorted out in the courts. >> Mr. Katzios, why is the issue of visas and immigration of talent not included in the action plan? >> Well, we talk a lot about the importance of the people that are going to make the AI ecosystem thrive. And one thing that was very unique and special about this report which actually doesn't get talked a lot about when it comes to the AI ecosystem is the importance of actual builders in how we build out the infrastructure for AI. When we think of the people that we need to make AI succeed, we need HVAC people. We need electricians. We need all these amazing careers that will be able to actually build these massive data centers for the American people. So this report touches on that and it also brings up the point that we need great talent and great Americans to be able to work on this technology. >> The way that that Mr. Jensen Wong has put it time and time again is that more than 50% of the world's AI researchers are from China or currently in China. And if you look at recent news flow and I know that you do Mr. All of these members of talent that are moving from Apple to Meta or Google to Meta in its super intelligence lab are either first generation immigrants from somewhere around the world but including China. >> Do you acknowledge that the the administration needs to come up for a plan to attract talent from outside of this country to fuel the AI industry here? America is already the place where the best and brightest people from around the world want to come live, work, and study. And we are blessed with that. And we continue to have amazing legal pathways for the greatest thinkers and minds and engineers to come work in the United States. Where I spent a lot of time thinking about is how we can make sure that we have more nativeorn American talent succeeding and being employed by our great technology companies. The percentage of Americans that are now pursuing high-end STEM degrees has been declining precipitously over the last 20 years. That is something that is a curve that we need to change. We need more Americans pursuing high-end PhDs and things like artificial intelligence and computer science and engineering. And that's something that we're going to work very hard on. >> Michael, also what's included is well the focus on reskilling, retraining and helping states and companies do that. Do you think there's enough there to support what is going to be a true upheaval in the labor market? >> I think we can get it done. And I think the Secretary of Labor and many of other secretaries are very excited about driving these programs forward. As I talked to builders that are building out Stargate, they're saying that somewhere between 25 or 50 states is where they have to bring in electricians and other folks in to actually work on these projects. And that's something that we need to fix. That's a curve that we need to we need to bend and get more people being able to to work on these actually high-paying, very efficient, great jobs for Americans and be able to allow them to participate in the revolution. >> Mr. CR, just very quickly, the plan includes a provision to contract only with developers using nonbiased models. The president brought the issue up, also talked about woke in the context of models. Explain why that was included, please. We have 30 seconds. The president has been very clear from day one about trying to remove Marxist DI ideology from the federal government. And a big part of that is making sure that the models and the and the technology that we actually procure and spend taxpayer dollars on does not support these types of ideologies. And that's why you're going to see changes in the way that we procure AI models to make sure that we eliminate