Big Technology Podcast: Amazon’s New AI Model, Bitcoin $100,000, TikTok 'Ban' Upheld
Host: Alex Kantrowitz
Guest: Ron Jon Roy of Margins
Release Date: December 6, 2024

Introduction

In the Friday edition of the Big Technology Podcast, host Alex Kantrowitz delves into a multitude of pressing tech news topics. Joining him is Ron Jon Roy, a seasoned analyst from Margins, to provide insights and perspectives on the latest developments in the technology sector.

Amazon’s New AI Model: Nova Enters the Arena

The episode kicks off with a discussion about Amazon's latest foray into artificial intelligence. After previously downplaying the initiative in an interview with AWS CEO Matt Garman, Amazon surprised the tech world by unveiling its new foundational AI model, Nova. This move signals Amazon's intent to compete directly with established players like OpenAI.

• Ron Jon Roy commends Amazon's strategic shift:

  "[...] Amazon really has been completely left out of this discussion other than its investments in Anthropic. Now they're saying, no, we have our own."
  (04:35)

• Alex Kantrowitz highlights the cost-effectiveness and speed of Nova compared to competitors:

  "Amazon Nova Micro, which is their smallest model, is 0.035 cents per million token input and 0.14 cents output, significantly cheaper than Anthropic's smallest model."
  (05:45)

Roy emphasizes that Amazon's strength in scaling compute resources positions them uniquely to deploy foundational models to a broader customer base, potentially reshaping the AI landscape.

OpenAI’s Shipmas Initiative: A Flurry of Product Releases

Next, the conversation shifts to OpenAI's Shipmas, a marketing push where the company releases a new product daily over twelve consecutive days. This strategy aims to regain momentum and showcase rapid innovation.

• Alex Kantrowitz notes the ambitious rollout:

  "OpenAI is shipping Christmas week with 12 straight days of releases."
  (01:40)

• Ron Jon Roy views Shipmas as a strategic effort to recapture attention:

  "Sora should be good, and if it opens this to more people to start being creative, we start to see what’s possible."
  (16:19)

Roy also speculates that Shipmas might serve as a "backdoor enterprise strategy," allowing OpenAI to tap into corporate subscriptions without traditional sales negotiations.

Google’s Video AI and the Emergence of Sora

The discussion then moves to Google's latest generative AI model, VEO, which boasts the ability to generate high-quality 1080p videos from text or image prompts. This advancement is seen as a significant step toward more consistent and usable generative video content.

• Alex Kantrowitz remarks on the practical applications of VEO:

  "If you can have some consistency in scenes, then you're talking about a tool that can be very, very useful."
  (19:51)

• Ron Jon Roy expresses enthusiasm for generative video technologies:

  "If Sora is like ChatGPT for generative video, it could open up new creative possibilities."
  (17:49)

Both hosts agree that while the technology is still developing, models like VEO and Sora have the potential to revolutionize how video content is produced and consumed.

Bitcoin Hits $100,000: A New Milestone

The podcast highlights Bitcoin's surge to $100,000 per coin, marking a 126% increase since January. Several factors contribute to this meteoric rise:

• MicroStrategy's Michael Saylor advocates for the U.S. to consider creating a strategic Bitcoin reserve.

• Gary Gensler's departure from the SEC paves the way for a more favorable regulatory environment under his successor, Paul Atkins.

• The introduction and growth of Bitcoin ETFs have attracted significant investment inflows.

• Ron Jon Roy characterizes Bitcoin's rise as a speculative surge:

  "Bitcoin is trading on the whims of regulatory changes and influential figures like Trump, not on technological fundamentals."
  (39:08)

Alex contemplates the sustainability of this growth, pondering whether Bitcoin could reach even higher valuations, while Roy cautions that such price movements are largely driven by market sentiment and regulatory shifts.

Intel CEO Pat Gelsinger’s Ouster: A Tumultuous Tenure

A significant portion of the episode is dedicated to the recent ousting of Pat Gelsinger, former CEO of Intel. Gelsinger's ambitious plans to design and manufacture chips domestically, backed by the Chips Act's funding, ultimately faltered.

• Alex Kantrowitz reflects on Gelsinger's strategy:

  "He told me that building the manufacturing plant is going to take five years. Yet, Intel reported a staggering $16.6 billion loss in a quarter."
  (45:23)

• Ron Jon Roy expresses disappointment over the failed big bet:

  "Time ran out for him. Even though he made his board pledge, his poor performance led to his exit."
  (46:26)

The discussion underscores the challenges Intel faced, including significant financial losses and inability to keep pace with competitors like Nvidia, which saw its market cap surge by $3 trillion during the same period.

TikTok Ban Upheld by U.S. Courts: Implications and Loopholes

The final major topic revolves around the upholding of the TikTok ban by a U.S. federal appeals court. The ban requires TikTok to either sell its U.S. assets or cease operations in the country by January 19th. However, the ruling leaves room for potential loopholes:

• Alex Kantrowitz explains the court's rationale:

  "The ban is upheld because it protects free speech from a foreign adversary's data collection efforts."
  (52:01)

• Ron Jon Roy speculates on TikTok's future in the U.S.:

  "It's not going to disappear from 170 million American devices. They'll likely find a way to navigate the ban."
  (52:01)

Additionally, there's speculation that Donald Trump, upon taking office, could declare that TikTok's efforts to distance itself from ByteDance satisfy the divestiture requirements, potentially nullifying the ban restrictions.

The hosts also touch on the cultural impact of TikTok, particularly the trend of users publicly sharing their layoff experiences, which has amassed over 32,000 posts under the hashtag #layoff. This movement brings transparency to workforce reductions but also raises concerns for employers about public perception and legal vulnerabilities.

Closing Remarks

As the episode wraps up, Alex and Ron reflect on the interplay of technology, regulation, and market dynamics shaping the current tech landscape. They emphasize the rapid pace of innovation and the critical importance of strategic decision-making by leading tech companies.

• Alex Kantrowitz closes with a humorous nod to their earlier discussion:

  "Maybe hire our advertising agency one day."
  (56:37)

The Big Technology Podcast continues to provide in-depth analysis and engaging discussions on the most significant developments in the tech world, offering listeners a comprehensive understanding of the industry's current state and future directions.

Notable Quotes:

• "Amazon should have their own foundational model." — Alex Kantrowitz (03:00)
• "They just want to be the place where if you want to build with AI, you'll find whatever models." — Matt Garman (04:00)
• "It's the most Amazonian playbook in history." — Ron Jon Roy (07:10)
• "This has to be a backdoor enterprise strategy." — Ron Jon Roy (14:46)
• "Pat Gelsinger lost $150 billion in market cap from Intel." — Alex Kantrowitz (45:23)
• "The TikTok ban is not an infringement on the First Amendment." — Federal Court Ruling (52:01)

Note: This summary omits advertisements, intros, outros, and non-content sections to focus solely on the substantive discussions of the episode.