 Hello everyone, welcome to theCUBE Pod episode 28. I'm John Furrier with Dave Vellante here, extracting the signal from the industry, sharing it with you, Dave. Great to see you, great to see you. Awesome. Episode 28, it feels like the past two weeks have been incredible. It's almost like a lull before the storm again with theCUBE. A lot of action happening. I just can't believe the AI stuff has continued to blossom. And huge amount of tech stories. Arms IPO has been announced. Everyone's going crazy on that. I really want to get your thoughts on there because you delved into it. It was a week of Silicon Valley and San Francisco intrigue because two things happened. San Francisco was like a ghost town because everyone got stuck at Burning Man. So that happened. Muddy man. It was, I call it drowning man. A lot of antitrust Amazon got sued by your friend Lena Kahn. The cloud wars happened. We're kind of still reeling in the post two killer events that just happened in the industry. One was the VMware Explorer and Google lesson that we talked about in the last pod but that the impact of those events are still happening. One VMware and Broadcom. That saga continues because apparently everyone's supposed to get their letters that whether they're going to get fired or not. And apparently only the VP's got their letters not the employees. They're going to get them later probably right before the August. What letters, your fired letters or your staying? I reported on theCUBE at VMware Explorer exclusive content that we had data and insiders telling us that everyone was going to get notified by Friday, November the first. Right, okay. So we were right but wrong, the only notified VP. So as of right now, the VP's at VMware know whether they're staying or going. Okay, so they got notified like stay or go. It's kind of binary. Not if you get a letter you stay or if you get a letter you're gone. It's like stay, some go. So everybody knows now the VP level. Yeah, they know the VP level knows. And then so that's going to trickle down. So there's less VP's now at VMware? Well, there will be. I don't know the timetable on the eggs. I don't have that much information because they're tight-lipped about it. And I really don't want to amplify it. It's a gutting and it's sad and VMware's a good company. Yeah, it sucks. So there are friends over there. We love VMware. I mean, they're a juggernaut and enterprise. And like I said, the chapter's closed. The new chapter will emerge and they'll do good with it. I mean, VMware will do good at Broadcom. But it's a crown jewel for Broadcom on top of CA and all their other business. They've got Symantec, CA. I know some folks over there that are doing great work. So a lot of stuff going on there. Google Next create a lot of buzz around our content around developer first. We call it the AI developer, the AI cloud. A lot of feedback on Twitter, a lot of feedback on the industry because now Amazon is really leaning into you're starting to see their moves. And you can almost get a feel that Amazon re-invent is in the air that they're gonna do some great stuff there. So ton of stuff going on at re-invent. They're gonna have the last word of the year on AI. So, yeah. We'll see. We'll see. It's like the last closing argument, the lawyer gets to close. I think you're gonna see a lot more Andy Jassy involved in that. Other news. Well, did you see that that he's like drafted? Dave Brown, you know these guys better than I do. Swamy, did you see that? Yeah. He's expanded his team, his senior leadership team to include those guys. That was an interesting move. They call it the S team. And the S team is the senior of Amazon proper. Yeah, all our guys are in that we know from Amazon. You know, Dave Brown, Matt Garmin, now Swamy. And then they got in the Robotex unit and he's in there too. Look at Andy Jassy, smart, okay? And he has integrity. He gets the market. He's pretty smart. And I think you're gonna see some moves from Amazon. Many are saying acquisition. That's the easy thing to give a hot take on. But Amazon and Amazon web services will unify. I think Amazon is a little bit behind Google in the sense of what Sundar Pakai did with the code red. And remember, we reported this on one of our earlier pods. The thing was on our first view. Well, remember the code red from Google? Google ordered the code red, meaning, hey guys, we're getting killed by ChatGPT in the public opinion and open AI and Microsoft, AKA number two cloud and we're the number three cloud. Since that moment, Google has absolutely mobilized and across the company. It's almost as if it doesn't matter which department you're in. They brought their AI jewels to the table and they're putting it out there and they're starting to see the fruit bearing off that tree from the code red story. Since that time, Google's now has a clear roadmap and they feel unified. Amazon is right behind them. And I think Amazon's code red moment probably happened after Google, after they got kicked to the curb and kicked in the teeth about being late to the game, which is not true. We've reported that many times. Amazon and Amazon has great leadership and data AI and all that. But they're kind of like quirky culture as you know in a good way. They probably said, ah, it's going to blow over. We'll work backwards from the customers and then like, oh my God, this is actually legit. We could actually get taken down a peg. And I guarantee you Andy, Jassy and Adam Sileski and team said, why are we taking punches on this? Let's just go out there and kick some ass. So I think that happened. So if that happened, the question is can they get their story out fast enough Dave for reinvent? Can Amazon show the market that they got the goods? We'll see. I mean, come on. They're not going to blow reinvent. You know, they, we'll see. I mean, if they blow reinvent, holy cow. I mean, that will be, that would be a disaster. If they don't hit the home run at reinvent in this market, and by the way, you know, the GPU competition is high. People want GPUs. It is a growing, hungry market for GPUs. Google's got TPUs. Amazon's got their chips, the inference, all that good stuff. And so the question is, will they bring it out? And can they get it out? And you know, a lot of the skeptics are throwing water on Amazon, throwing shade on Amazon web service. Don't think, and I think they're going to do it. I mean, you know, I don't have any inside information yet. I'm still digging around. We'll find out, well, I'm exclusive with Adam, but just knowing the company for over a decade. I mean, Dave, we've got 10 years of reinvent coverage. This reinvent, where we'll be there, the cube will be there in force, by the way, but not on the floor, is our 11th year. I can tell you that I expect them to have something pretty good. You can connect the dots here. You're going to see some high performance compute and GPUs support. You're going to see the data story become clear. And the wild card is going to be what the ecosystem does. Can the ecosystem go the next level? And I've been very critical of Amazon's ecosystem being monetized at these events, as you know. So we'll see. I think Amazon has to have a pro ecosystem move to continue that momentum as number one, as the number one player. So, you know, it's too early in the game to say they're going to blow their lead to make the playoffs, if you will, as we always say about the Red Sox and Patriots. Yeah, well, the Red Sox aren't looking so good. And the Patriots are going to get crushed tomorrow or when it's Sunday, right? It's football season. The Philadelphia Neagle, so my God, it's going to be ugly. Did you get in the pool? I got in the Silicon Angle pool. Did you get in? I don't get invited, they don't want me in there. I won it last year, you know. You did? I did. I don't get an invitation. The boys don't invite me in. Why? I won it last year, I did well last night. My guy got 19 points, so that was good. Did you see that Nielsen's not going to report that discrepancy data that Amazon had on Thursday night football? Amazon claimed that Nielsen was way undercounting the viewership for Thursday night football. And they're like, look, we'll give you our data. We got better data than you do. And Nielsen's like, okay, that's cool. Well, the other network's complained. They're like, no fucking way you can publish that data. It's too soon because it's, so it's Thursday night football like having, you know, bigger share and using data. It's called the internet data. Well, exactly. It's called the internet. Exactly. And so, and of course that's going to boost advertising, you know, rates. And so the other network's complained about it, so Nielsen shut it down. So that was kind of interesting. That would be a big win for Amazon. It's almost as if the truth is out there and everyone's making money on the lie, AKA Nielsen rating. So why unveil the truth and level the playing field against the people using fake data? I mean, Nielsen is fake data. Everybody knows that. So I think they kind of even admitted it. So I didn't see Thursday night football last night. I was working late, but I like Thursday night football. I think it's got, they got a cool vibe. Amazon does some interesting, the stats are great. I mean, it's kind of overload on Thursday night, but it's good. I mean, the format is really good. So. Well, I thought, I thought, you know, last night was not a prime game. It was a NBC kickoff, but I interviewed this week, the CISO from Prime Video. And that was amazing. That's going to be part of our Amazon startup showcase that's going to be airing next week. We got 10 startups, as you know, featuring them. And he's the CISO of Prime Video. And I brought up the story about the CISO from the NFL at Cisco Live. We did that story, we met her and she talked about the hacking the scoreboards. Yeah. I asked them. I asked them. I asked them and he goes, yeah, that concern about, cause they travel with their, with the prime team. Amazon primes NFL coverage is awesome. That's the, it's unique. Everyone went in studio to remote crews. Amazon does the studio on the road with, with the crew. So I was interested from the CISO's perspective, among all the other things that they do, what that looked like from a security standpoint, because again, this is like an IoT device. They got a full, all the trucks. They got to run cables, got the cameras. And the bottom line is, is that you can hack that stuff. So they are very, they're at the firmware level. So he asked, he answered the question. He went into great detail around the security around Thursday night football, because they traveled to the next city. So it's like basically a moving, it's a role, it's a moving factory. And so I was really curious and I thought that was fascinating. And then I asked them about how they're integrating in on these platforms with other things. I don't know if you have used prime, but prime's got, you know, MGM, MGM plus relationships. So that to me, and YouTube, by the way, YouTube TV is doing a great job on this, by the way, if you follow the streaming platforms, whoever can integrate best with the billings will win. Because one of the things I hate about streaming is I want to watch another program. And then I got a context switch and it takes seconds to learn. It's horrible. I forgot the password. That's why YouTube's so great. All right, it's got a lot of content. I wanted to watch the game last night. I could actually go on to YouTube TV on the main channel, but I was in my NFL app, because I thought it was on the NFL. I scanned the bar code and boom, I'm in YouTube TV. Instantly cross-connected me to YouTube TV. So, check it out. That was amazing. That is amazing. That's called, that's integration. So, cable, I don't know about your cable, but spectrum, they know more ESPN. ESPN, ESPN2, ESPN Classic, all the ESPNs. You can't get them anymore. Same with Disney, right? Yeah. And they're saying, here's the phone number to call to complain. I'm like, no, I said to Deb, go for it because she's been trying to cancel cable forever. But I'm like, ESPN, now ESPN's gone. I'm like, cancel cable, get rid of it. YouTube TV's awesome, right? Well, Disney had a huge issue with, Charlie was a stalemate on the contract negotiations. Huge issue. And I think basically video broadcast is struggling. This is the war between streaming, Dave. This is what we, this is our world now, digital TV. But you're talking about, your point about the user experience is right on. Whoever does the integration and eliminates that context switching, they're going to be able to charge a premium. And that experience is going to be really, that's going to be really important, but just cause it's big changes coming, right? And then, you know, I got Roku's, some Roku's and some of my TVs. And that's, but, you know, that is that, that's a dead end, right? Cause all these internet TVs now do everything that Roku does. I mean, the thing about the ESPN thing is, I mean, the question is the power. ESPN has so much power. The question is, will your phone calls even matter and do they even care? So presently ESPN spends roughly about nine billion a year on sports rights. Yeah. And, and, you know, now the, and this is before we have to pony up for the new rights for the NBA and the new rights for college football. That's 45 billion in sports rights fees through 2027. Yes. 45 billion dollars. I'm not calling ESPN. I'm calling Spectrum to cancel. Forget it. I don't need you anymore. I need, I need K, internet in. That's it. I need, you know, high speed internet. Give me good, good download, upload speed. That's it. The rest of the stuff. Forget it. I don't need it. I mean, this is why I think the whole college football misalignment, that was other big news that happened that we didn't talk about last pod was the Pac-12 just disintegrated, disintegrated. And now Stanford and Cal, the schools here in these West Coast, in my area, Palo Alto, the rivals, they're now in the ACC, which is Duke, North Carolina, Boston College. I mean, it's like, they got to fly across the country. It's ridiculous. I know. All because of the money. The question is with cable and the 45 billion that ESPN's got to pony up, Disney's looking at the numbers. They're saying, hey, wait a minute. Why don't we just go streaming? Why should I even deal with the charter deal? In the old days, they never would have had that leverage. The leverage would have been the cable company. So there's a huge push. And the same things going on with the actor strike right now. A lot of these Hollywood guys who were middle, middle of the road, they have podcasts going, comedians, actors. They're kicking ass on the direct media. And that's interesting. Yet the writers and media are all the channels going to substack. So, you know, Disney, you know, Disney and charter is going to open up the door for other cable potentially to crash too. I mean, look at Comcast, Xfinity. It's kind of, Dave, we're living in very interesting times. I mean, you know, Hollywood versus say traditional media, almost opposites, right? Happening. Spotify has news that their podcast venture, a billion dollars is kind of going south, not doing well. Interesting there. Spotify, you know, had this podcasting network. They spent a million dollars, but the subscriptions are up. Ads aren't working. Hey, ads don't work in podcasting. That one interstitial broke you by. I guess that doesn't scale, but apparently I love podcasting, as you know. I'm biased. So the title is the hottest coach in sports, Coach Prime. So Dion Sanders is the coach of the Colorado University Buffalo's. He came from Jackson State and we had a great record of Jackson State. This team was one in 11 last year. And they just beat TCU, who went to the national championship. They got smoked by Georgia Tech, but they beat the number two team in the country last year. He comes in, his kid plays QB, and he's got his mojo going. He says, I'm bringing my baggage, bringing my luggage, and it's Louis, as in Louis Vuitton. So, and he calls his leaders dogs, and he's got these guys going. This is a guy, a lot of people don't like him. I gotta tell you a quick story. Marion Campbell was the coach in 1989 of the Atlanta Falcons. And with Dion's rookie year, game one, they quoted him up in the boot, the broadcast boot, Marion Campbell saying that Dion Sanders is the greatest athlete I've ever seen. Asked for a comment, Dion responded, that's accurate. This guy has balls, and I love him, and I wish him luck. I can't wait to see it. And I just, the last thing is in 1989, I was at the CU Nebraska game, rooting for Colorado, a friend of mine went there, a college roommate's brother. And that, to your point, is like, they're no longer in the same division. I don't know, they blew up, you know, the division that those guys were both in for years. It used to be a big rivalry. So maybe they'll come back. Colorado, they were in the Pac-12 for a while. Pac-12, yeah, right. I mean, we'll see. And Nebraska was in there too, right? Nebraska, Oklahoma, right? I mean, Boulder's full of electricity right now. You gotta be pumped for Dion Sanders, you know, beating a team that was in the national championship. Obviously huge, his son, they're already talking high as their potential. The team is rocking. I mean, it's early, I know. But that guy played, Dion Sanders played 188 games over, I think 14 seasons. That guy showed up, and he got two rings. Prime time. Prime time, he put his money where his mouth is. Well, Dave, I mean, we got a lot going on in tech, again, earnings, but, you know, Apple's coming out with a new iPhone, you know. So you're seeing the iPhone 15 potentially coming out and a big event. What version of iPhone do you have now? I don't even know. I have, you know what, either the latest one or... No, my phone died last December. I was going to the Palo Alto Network show. So I tried to get the latest, what is it? The 14 is the latest, the one with a good camera. See, I only have the two cameras. And so this is all they had. And my phone wouldn't keep a charge. So I said, ah, fuck it. I'll just give me what you got. So, you know, it's fine. Doesn't have the good camera. Doesn't have the, what do you call the little notch there? I don't have the notch. Maybe another one. But I have the fatty, like the big one. You used to have the big one, the fabbler. No, I know, I have the biggest one. I like the fatty, but I got the... I got the shitty camera. And a new one. I don't have the notch. Wait for the 15th. So wait for the 15th. They got the big September 12th event. It's, they call it Wunderlust. I hate though. Every time I get a new phone, it's like, you can't log into any of your apps. You got to re-sign in, forgot pass, or it's such a pain in the ass. Not worth it. I'll wait till Apple just does its planned obsolescence and forces me to get another one. So random news. So Teresa Carlson took a job at Flexport. She's a Cube alumni, former AWS. She went to Flexport to join the CEO there, Dave Clark, former Amazon ran retail. He steps down, so speaks, sets down. And that's the founder, Ryan Peterson comes back as a chairman. They already refreshed a website. They got rid of Carlson. So David Clark and his lieutenants are all gone. The founder comes back and then David Clark says he's running for governor in Texas, okay? Right. Teresa, I texted her yesterday and tried to get a comment, no comment from her, but she obviously finds out today. She's no longer on the website. So Ryan Peterson made it clear that he's come back to make the growth work. So, you know, lot of finger pointing, honestly, you know, the exit, you know, I'm gonna change, I'm gonna go to politics. He didn't, obviously he got fired. He got bored, basically took him out. But, you know, the market for some of these big companies that overextended have to grow. So they're bringing the founder back, which, you know, and by the way, David Clark was totally complimentary. They could probably get a lot of shares. You know, when times are tight, it's great to have the founders around. And this is something that the press and doesn't get, and even the VCs don't have this orientation because they like to bounce founders out. I can tell you from first hand experience. The founders come back because when you gotta pivot, you gotta make changes. You need the founder's energy and execution skills and creativity to make it happen. So, Ryan Peterson is coming back to Flexport. Amazon guys came in, team came in to essentially scale it up at the cadence of, you know, Amazon law, if you will. You know, Amazon is get it going, you know, work back from the customer. They did that, but they overspend and now they gotta grow. So the founder came in to accelerate that and they got rid of the lieutenants which one of them was Teresa Carlson, a friend of the Cube. So, you know, I'm sure she's gonna have a job. I wouldn't be surprised if she's just back, if Andy Jassy doesn't call up and get her back at the Amazon. Yeah, you think? I mean, I would hire, if I were a company, I'd hire as the CEO. Woman's CEO, power player, great salesperson, great manager. Here's the problem. She's so strong as a leader. She needs to be in a culture that actually rewards that. And I think, you know, she left Amazon, she went to Splunk. They went sideways and then they're kind of going on the private equity route or having a new CEO. Left there. Did she go to Microsoft? She went to Microsoft a little bit to kind of play the field there. Probably didn't wanna sign up for a big number there. Joined Flexport, which looked like a great gig because former Amazonian Dave Clark, then, you know, in the family so to speak that he gets bounced out. So, you know, I think for Teresa, she's gonna be on a rocket ship with great people. And, you know, this is the classic thing. And I think if she goes back to Amazon, they could use her right now because they had a lot of turnover in the ranks there. And her DNA of Amazon DNA would add massive value and she would instantly be able to step in as a leader in there immediately. And so the question is, can she work with her former colleagues? That's the kind of thing that's gonna come up. But I think Andy Jackson should bring her back in. And they call that boomeranging. Yeah, as I say, boomeranging would be a very positive sign. My opinion, that would be a real plus. Yeah, so I just find the founder, that whole founder thing is going on right now. So in this market here in Silicon Valley and around the circles, there's two types of companies. One's that AI companies that are growing, mostly younger demographic founders. And then the founders of the SaaS companies that are either about to go public or on the verge of public offerings, and then ones that aren't making it. And the ones that aren't making it are gonna probably not make it if the founders don't stay around. And statistically it's proven. Cubbies that are more successful, the ones where the founders stay around. Yeah, not necessarily run the company, but are there. Yeah, to make it happen. So I liked about Frank Slutman's book. He said, I always celebrate the founders and you've seen that. He did that with Data Domain, with Service Now, with Fred Luddy, and now with Snowflake, with Benoit and Terry. He reveres the founders, treats them with respect, which is that's the way it should be. It's like, let me run the operations and let me handle the board. You guys do your thing, do your product thing. It was very few founders that actually have made like super successful CEOs. Obviously, Michael Dell, Bill Gates, Larry Ellison. I mean, there's definitely more than a handful. Yeah, I mean, the founders to stay, well, the one Google, for instance, they had brought Eric Schmidt in, but they stayed up there with Zuckerberg. He stayed in charge. Yulia Packard, their founders stayed in charge. You know, I think, I have a look at Steve Jobs fired. Then he came back, obviously. He needed to be around. I think it's a fallacy that you need to bring an operator. Frank Slutman is a unique situation, but I think that's not the formula for success. I think, you know, you bring a Slutman in when the founders can't operate, right? That's his formula. And so that's the key to these deals is do the VCs prematurely not make the founders operators or if the founder wants to be an operator, they got to be in a position to learn how to be one. And if they think they're one and they're not, that's failure. And that's when they get balanced out of the company. When the ones that say, hey, I'm not an operator, let's bring a Frank Slutman in, that's the scenario. Or a founder that's young, a Zuckerberg, hey, I want to run this company. You surround yourself with operators underneath you supporting you. That's the key. The ones that fail, the ones that think they can operate things and they can't. Well, wasn't Sheryl Sandberg, I mean, the real operator at Facebook? Or, and you know that better than I do, but I mean, Zuckerberg caught lightning in a bottle. And then the word is like Sheryl really managed that day to day, right? Yeah, on the business side. The technical side, Sheryl didn't have anything to do with was Zuckerberg and Chris Cox on the team. They had a good team on that side. So that was a great example of divide and conquer. And that's essentially what Larry and Sergei did with Eric Schmidt. Eric Schmidt came in at the right time and that was controversial at the time. And they maintained that three person team and then Schmidt handed all the business side. Of course, Larry and Sergei were actively involved. It wasn't like, I think Zuck was letting Sheryl do her own thing. Sheryl Sandberg with some oversight, but I think Zuck trusted her and let her run the show. And you know, some say that that was the problem. She got too successful. The advertiser became too good, Dave, it was so popular. You know, it broke democracy. I mean, let's face it, Facebook was so successful in their targeting that the payload of the network effect on their overall social graph infrastructure was so strong. It didn't matter what you put good content in there. Works great. You put bad content in there. It works bad, great. So, you know, it was too good. I mean, and I think Sheryl built that system. And then because the ads were paying so much, they had to look the other way. No one talks about that, but that's basically, in my opinion, what happened. They kind of knew about it. It's like, oh, I don't want to hurt anyone. At the scale, it's almost too big to pull back. It's really a tough call. Facebook definitely had some big problems there and they need to pay their pennants for that, but you can't blame them. I mean, what are you going to do? Turn off the billions of dollars flowing in? Oh, they had so much cash coming. Oh my God. And, you know, that's like Microsoft back in the day. They basically had their monopoly. It became indestructible. I mean, they earned it. You know, bomber and gates obviously made the right moves, the right chess moves relative to IBM. And they kind of stole the graphical user interface moves. Whereas Apple never really had that sort of monopoly, right? They just made great products. Dell, they didn't have a monopoly. They were basically putting together other people's components. And so that was more of a business model. Oracle had to fight it out with Sybase and Informix and IBM. And so it may make interesting case studies, I guess. I don't know. Well, Dave, there's a hurricane brewing, just FYI, coming up your way. Dude, we just got hit. Like this 45 mile an hour winds blew through here. There must have been like 100 lightning strikes. It was pitch black. I was like, what the hell? And then, boom, gone. So I guess it is headed our way. I mean, I just found this out. What do you know? I don't even know. Hurricane Lee, brewing down there. Christ, that's all we need. You know what else? I gotta have a shout out to your alma mater, Babson. Babson was named the number one college for schools among the Pulse 2024 best colleges in the US that scored the highest for career preparation in a survey of students and recent alum. Babson, number one. Over Northeastern? Northeastern, did he make the top 10? They got the great co-op program over there. I know, I was surprised. Babson's a great school. I tell everybody, you know, when I went to Babson, Harvard wouldn't accept part-time students because I went to Babson part-time because I worked for Ula Bagger in the 90s, early 90s, ladies early 90s, and they paid for my college. You know, it's kind of a factoid I've never really talked about before, but I don't know who I had to, but what did you have to give them return? You have to just sign up for some number of years? No, no, they basically would, part of the company benefits was if you were identified as a decent performer, like I was, and you didn't have to be a superstar, but if you were like, had the aptitude and your managers and a certain late chain of command approved it, they'd pay for your education. That's it? You didn't have to sign up for two years after or no? No, I quit two years later, started a search company. That's awesome. Ula Bagger had a philosophy. David, I get the book right behind me, it's called, I Keep Out My Desk. It's called the HP Way. And then they had a philosophy called management by walking around. And back then you'd walk around the factory floor, kind of shoot the breeze and check on things and press the flesh. But Bill Hewlett and Dave Packard had a philosophy and their philosophy was train their people so that they're so strong enough that they would want, they could go out and start a company. They were very entrepreneurial at that time. See, this is like insane pre-entrepreneurial momentum. There's like a wild card, no one thought like this. Every corporation was maximize the employees, theory X manager, they called it. But Ula Bagger said, we wanna train our people so they can go out and start their own company. And then people said, why would you do that? He said, well, it's our job to keep them here. And that's the philosophy of HP. And so, if you wanted education, you do it. So I applied to Babson, got in, Babson College got my MBA there. Obviously my undergraduate computer science at Northeastern, but they paid for it. But I had to go at night, night school. Harvard had no night school. So, you know, but Harvard and Babson, the professors teach both places. So all my buddies who were at Harvard Business School, were getting the same classes. Jeff Timmons called entrepreneurship. Nick Stevenson taught a financial entrepreneurship, had a financial growing venture. The faculty would swap back and forth, you'd compete for the Kaufman Fellowship. And so, and I asked someone, why do they do that? They go, well, they get paid more at Babson. So Harvard said, we don't want to lose everyone to Babson. So they let them do their side hustle at Babson. And that's how Babson got their name. They were essentially letting the Harvard professors teach the Babson folks. And, you know, and a lot of Babson attracts a lot of international students that Harvard wouldn't let in. OK, so that was another little kind of area that Babson had cornered, which is, you know, the king of this country's son goes there. Or, you know, royalty, you know, oil money or whatever. It was a very diverse school. Babson was great. I mean, I really enjoyed my time there. I learned a lot about myself and entrepreneurial thinking. The curriculum was amazing. And I was totally prepared. What they didn't teach you enough of that Northeastern does is hands-on, like you need to fall on your face in entrepreneurship. And they didn't really prepare you. They kind of say, oh, you got to fail and learn, but they didn't really highlight that enough, Dave. You say, in Northeastern or Babson, didn't you? Babson, Babson gave you all the things you need to be an entrepreneur with it. They give too much false hope. This is the problem of all these programs. Entrepreneurship is frickin' hard. Right, what they don't tell you is when you would be prepared to do a face plant. It's like learning how to snowboard or ski. You know, you're not going to be great until you do a bunch of face plants. And that's what they don't teach in school. And that's hard to teach. You got to do it, get out there and just do it. So everyone always asks me, should I get my MBA? Yeah, no, get out there and get going. Just don't break your neck. I love that's the Bill and Dave story, though. That's awesome. Remember we did the show at the cube at Bill and Dave's office? Remember that? Yeah, the old 70s furniture that they retained. They had ass trays on their desk. Yeah, big ass trays, right. That was wild. Ah, that's awesome. Well, what else is going on in the news? Arm, arm, arm, arm IPO. That's what I want to get to. Yeah, so Dave, so you're on top. Well, first of all, we've been, we both and our teams have been covering arms until the cows go home. You have an opinion on the valuation. What's your take on arm? Well, you know, what caught my attention is in Rob Hofer, our editor-in-chief, shares notes for the week. And he quoted this guy, I guess in one of his stories, this guy from Third Bridge, I guess they're a research company, Albee MN Kona, he's an analyst. He says, it's a lot more challenging for arm to capitalize on the current trend for AI than a company like NVIDIA, because around 60 to 70% of arms revenue is derived from mobile and the AI landscape is centered around cloud-based operations, rather than being heavily integrated. That's fucking bullshit right there. So I wrote a big giant, you know, wrong. And so, because I mean, first of all, you know, one of the first, you know, uses of AI as consumer with face recognition, right? Most of the innovations in the enterprise come from consumer, if not all of them. And I think whereas much of the AI, if not most of the AI today is this guy saying, modeling in the cloud, the vast majority is going to be AI inferencing at the edge. I think arm architectures are going to dominate that. So I mean, the fundamental starting premise is not right. And then the other thing he said, arm itself notes that generative AI poses potential risks to certain part of its business since AI models generally run on graphics cards, not the central processing units that arm makes. Well, arm makes CPUs, GPUs, NPUs, accelerators. And I think then the other one was he noted that the other big risk to arm is risk five, already making inroads. Arm has like such a huge lead over these other alternative architectures. I know Alibaba is leaning into risk five, but so I just, some of that stuff, I think is fundamental assumptions that are wrong. Now, having said all that, he's correct in that arm is not growing that rapidly. But I think this is more business model. It's got this business model where it's licensing its technologies, but it's got a killer, awesome platform. And it's got 10x the way for volumes. I've said this many times of x86 and it's volume, volume, volume. So arm is going to win in terms of low cost. It's going to win in terms of performance, low energy, and it's going to, I think, dominate. And that's why NVIDIA uses an arm-based architecture. That's why Amazon's using arm-based architecture. Same thing with Microsoft and Google, which is again copying a lot of the moves that Amazon had made with Anaperna. So I like arm, I think you're right. You alluded to my thinking that it is somewhat pricey. I think it is. Is it worth 50 to 60 billion? Probably not with- What are current comps at that level? Who's at that valuation? What's Snowflake's valuation? No, Snowflake's well under that now. So 30 to 50, I mean, Databricks is like 42. What's Intel's valuation? I bet you Intel's less. Intel's less, I mean Intel's value right now. No, sorry. 159 billion, so triple what arm will be at, okay? Yeah, I mean, I don't know. The problem is they've got- I mean, look, if arm continues to dominate, then it becomes standard. The number's going to be massive. So I think it's going to go up. It's just the problem is it's just, they don't make it. TSMC makes the chips. And then the other thing is the licensees add a lot of value. So for instance, this guy said, you know, risk five making inroads in automotive. Well, Tesla is like using arm. They basically take the CPU and GPU pretty much as is, I think, and then they program the NPU because arm is so programmable. So that's where they add value. So a lot of the value add comes from the licensee, which is such an attractive model for the licensee. Now, risk five has got a lot of open source. You know, you could probably do something similar, but arm volumes are so large. And basically they've taken the time to tape out, which is the time it takes to go from, you know, design to actually you got chips that you can install from five years, arm took them down to 18 months, maybe even 24 months. And now with the most recent announcement, their recent Neoverse announcement, their latest version, they take that down to nine months. You know, this is so far ahead from a time-to-market standpoint and a cost advantage because of Wright's law. So I like, I mean, it's, look, they're getting more from a valuation standpoint than they would have got selling to Nvidia, but the problem is they're a controlled company. You know, the stock's not gonna be like super liquid, right, because SoftBank still owns most of it. But I mean, I love arm. I wish the U.S. government let Nvidia buy it. The U.S. would have owned arm instead of, you know, international ownership. But we got, we have to kind of break early today because I have a couple more interviews I gotta do here in studio, but we have a couple minutes. I'm renting. Oh, no, no, no, it's great rant. Arm is a super valuable company. It's an important company. And people are gonna be analyzing this till it's till for a long time. But I do want to get one thing in. So I just saw a tweet posted this morning where the founder, co-founder of Huggingface, Clement DeLong, I've interviewed on theCUBE. He's a CUBE alumni. He's gonna leave, you're gonna like this. He quotes, where are the open sourced AI folks in Silicon Valley? Question mark. Hope they haven't all been brainwashed by the doomers and proprietary people. Ha, ha, ha, ha, ha, period. The number one open LLM, Falcon 180B has been trained outside of Silicon Valley. So it's time to step up. What a call out. So first of all, first of all, first of all, he's not really American, so his English is off. Proprietary people, I love that, my favorite line. You proprietary people, you doomers and proprietary. First of all, I love Clem. Clem, we love you. Love you to death, CUBE alumni, gotta say it. Get it all wrongs. Silicon Valley is not doomers and proprietary people. There are proprietary people in Silicon Valley, but that's a little bit of an over-generalization. Okay, that being said, he does call out Silicon Valley. And we have open source out here. We got JJ, he runs open source VC firm, always pumping in an event coming up. Tons of open source in California. Tons and Silicon Valley, a little bit off base, little bit of a shot across the bow, little bit of a global rivalry developing, Dave. I wanna bring this up because one, I like Clem, but I like his point calling out Silicon Valley, even though it's a little bit over the top, brings up the global, global, global discussion. Open source is global. Entrepreneurship's now global. There's a global wave happening. And this is something that we're gonna continue to talk about in our pod, probably in another episode, but the global entrepreneurship with AI is so big. Does Silicon Valley have to evolve? He's basically saying, you're behind. Step up. Getting dispersing innovation. I'm not sure I agree with him, but half the sub machine learning came out of Silicon Valley. What does Chambers say to you? There is no, he was in East Coast 128. Silicon Valley took over. Still because I took over. There is no sure thing. He had a different phrase for it. Hey, real quick, did you see Las Vegas Hotel staff is gonna go on strike next month, maybe? That'll suck with the fall conference season. Yeah, that'll get room servers anyway. Yeah, well, it's supposedly everything. Housekeepers, bartenders, you go to the bar, bartenders, all staff walking off the job, restaurants. So that'll really suck if that happens. All right, what's your rant for the week? So I kind of did my rant already. I guess I have another rant. Healthcare costs are going up. Hey, there you go. Like supposedly going up like more than they have in the last 10 years. So they're gonna squeeze small businesses again. And you know, it's just got, something's gotta give here, John. I mean, either we gotta get to universal healthcare or somehow we just can't keep burdening companies with these healthcare costs rising with no value add. I mean, we keep making these investments in healthcare as companies and we gotta, what choice do you have? You gotta squeeze your employees' worth, make them put up a bigger chunk of the pie. You don't wanna do that. Or you just eat it and you take it out of their pockets or you try to pass it along to customers which you can only do so much. So it's just, you know, I really think that it's a longer conversation but I have thoughts on how to solve this problem. Less defense spending, restructure social security and Medicare and entitlements and put it toward healthcare. Put it toward universal healthcare. I think it's never gonna happen because the Congress doesn't have the balls to do it but that's the simple math equation. Cut defense, cut entitlements, you know, create universal healthcare, just extend Obamacare. Everybody's like, oh, Obamacare is a disaster. Well, no, the disaster is this just endless cycle that we're in and people that don't have healthcare. So that's my rant for this week. Good rant. I guess my rant is more of an observation rant but Time Magazine just put out the Time 100 slash AI, the Time's most 100 most important influential people in AI. And I guess it's a quasi rant because AI has become propped up now to be this like mainstream political thing. And, you know, I know some of the names on there, Clem from Hugging Face, you know, he's on there, right? You got a lot of leaders that I know in there. Great names, by the way, good list. It's not comprehensive. You know, I think it's more of politically correct, you know, kind of names. There could be more names on there. I mean, like Mark Andrews and what, why is he in there? I mean, what has he done? He's just throwing money at people. I don't wanna say he's influential. Reid Hoffman, I think may have been more on the ground. There's a lot of people that should be in here that aren't, we'll get into that list. Jensen, obviously with NVIDIAs in there. Not a lot of women, you know? Guess who made it? Cube alumni Aiden Gomez, he should be in there from Coheir, which is cool. So they kind of got a couple of guys in there. Clements in there, Clems in there from Hugging Face, Sam Altman, DeepMind, the CEO and Chairman of Baidu is in there, Chinese guy. Anthropics, I'll see in there from there. This is all presented by Intel sponsored this thing, by the way, not NVIDIA, it's ironic, no one from Intel's in there. You got Salesforce is in there. So it feels a little too media oriented, not enough. Still sounds like a pretty good list though, John. Oh yeah, not a bad list of all. It's a great list. I'm just saying, now we're seeing the time 100 come out with AI. I don't know, I guess to me it's a little too early to tell. And by the way, this doesn't include the people that have been involved with AI for years. I mean, AI is now popular, but it's only because of the cloud and the things that have happened recently. All the tech and theories, old. And there's a lot of people that have been involved in bias AI for good, a lot of this stuff, neural networks that need to, I think we should highlight. So just what that's out there, it's a mini rant. It's not a full rant, because I'm not against lists, believe me. Oh, but I'm glad you brought that up. I got to check that out. That looks like an interesting list. Yeah, so that's it for me. The rest of my kind of rant is more, or I should say enthusiasm is how AI has just continued to be super exciting. I think it's the fountain of youth for us older, multi-cycle industry veterans that have been around for a while. And certainly for us with the media business we have, it's just great content. I think entrepreneurs are coming off the bench right of retirement to get into ventures. New young people are coming in, demographics are shifting for founders. It's just really one of the most exciting times in history of technology. So being more experienced now, I wish I was 25 again, like I would say, because it really is a special time. So I always say to my kid, my four kids and friends, get in the arena, get on the floor, get on the dance floor. This is gonna be a great party. And from an entrepreneurship standpoint, we're talking about Babson College and these other schools, you can't teach this stuff in school. Executing, putting teams together, getting synergy, getting cohesion, product market fit is gonna be even more of an art. Because- Get in the arena, like Tom Brady. The acceleration of venture creation is gonna be, the new venture creation is gonna be phenomenal. It's gonna be fast and it's a new game and the pace of play, it's gonna be amazing. So I'm super excited. Can't wait to look at companies, invest in them, cover them and have fun. So I gotta say, that's my final point. But it's all good. And again, outside of that, got Reinvent coming up, we got CrowdStrike. I'm gonna be in DC day from Google Mandy at the security show. You got- We're in Vegas next week. I'm gonna be in LA. I'm gonna be in LA with Paul Martino. He's got tickets to the Eagles LA game, Rams game at the SoFi stadium. He's going to LA. Wow, he's traveling. Those Eagles fans travel, they're crazy. I'm gonna go see my daughter in North Carolina at UNC, watch her soccer games and then hang out for parents weekend. And then a lot of action. A lot of action. All right. Well, Dave, that's episode under books. We'll wrap it up. Check us out at silkenangle.com, cube.net. See you next time.