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0:00 Altimitter's Brad Gersonner. He is with me for the hour today. Big tech had a trillion dollars wiped out on these spending fears. >> What were you thinking about over the last few days and what should our viewers take from it? Yeah, I mean it it it surprises me how surprised the market was. I feel like this had been well telegraphed, but you're right. Incremental spending by Google and Amazon above and beyond the con consensus expectations on on capex is pretty extraordinary. But listen, you know, we're going to hear from Jensen later, 650 billion to 700 billion of spend out of the big five companies in the US and they say they're still token constrained. The reality is Andy Jasse said last night that he has demand coming in over the bow. He can't fulfill the demand. It's it's high ROI. So he's going to get a big return on this. They need to make the investment. The beneficiaries I think are all the people who are building the infrastructure and the chips in order to enable us to advance AI.
1:00 >> Does the rebound today suggest to you that the the damage has run its course to this point or are we just susceptible at any moment with any headline to have the similar reactions that we've had over the last few days? Well, listen, you know, one of the themes I think we got to think about is when the rate of change goes parabolic. And that's what we're seeing today with AI. There's a fog of war. And when there's uncertainty in the markets, discount rates go up and multiples come down. People start questioning terminal values. And that's why valuations change even before numbers change. Let's be clear, Google's numbers were spectacular. Amazon's revenue growth spectacular. Microsoft only missed by a 100 basis points and had incredible Azure growth. The world is desiring to consume a vast amount of this AI resource. It's it's it's a struggle to keep up building it.
1:52 >> All right, they still got some work to do to get ready for the big game on Sunday. So, from time to time, those are the sounds that you may hear outside of Levi Stadium. When you do though, Brad, look at the $650 billion this year that these companies will collectively spend or at least think they will. We'll find out what the final numbers are when the final numbers are are the numbers. But how much is too much? How much do they need to see that money pay off? You're an investor in many of these companies. You must be thinking about >> when am I going to see a return on that investment that's commensurate to the amount that's being spent in the first place?
2:28 >> Right. And listen, people asked that question to Andy Andy Jasse last night, right? What are the guard rails? Will you spend all of your free cash flow, more than your free cash flow? And he said, "This is a unique once-ina-lifetime moment to fundamentally change the arc of AWS." And mind you, he's grown that business from zero. A business that, you know, most people questioned when Amazon was investing in it 2008, 2009. So when the smartest guys in the world, when Sundar, when Elon, when Andy Jasse, when Mark Zuckerberg are all saying we are going to earn a return on this investment, I'm telling you, my bet is on them. I don't think this is a permanent new normal in the amount that's going to get built.
3:09 But I think for the next 3 years, this is like building the interstate highway system, right? This is significant. It's important to the United States of America. By the way, we're we have $700 billion of investment going on. That is the size of the interstate highway system and it's all funded by profitable private companies in America. It's great that it's being built here and I think those are those are smart investments. But, you know, you do have to ask yourself as a stock investor, do you do you want to own the picks and shovels?
3:37 Do you want to own infrastructure and chips and all the other things that are going into these data centers and maybe take a little off the table from some of the the companies that have to spend all the money? I think we need to address what's been happening with software. because it's been dramatic. >> We've seen stocks that are good companies. >> Yeah. >> Widely held. >> Yes. >> Come down by significant amounts. If you look at the year to date for many of the the biggest and best names, everything's read except for like Zoom on the literally.
4:07 >> >> why is this happening to the degree it is? As we've discussed on numerous occasions, is it overdone? At times you've said yes. The last time we were together, you said something like 90% of the companies, the software companies that were down the way they are deserve to be. Those I think were your your exact words. >> Where are we here? >> So, so when you and I were together on January 6th, I said, you have to understand the difference between earnings and revenue and stock price.
4:34 Okay. And what's happened in software is hard for people to get their head around because the stocks have been cut in half. But that's not what the market is discounting, Scott. The market is looking into the future and saying in the past three years ago I could I could buy 35 years worth of of Salesforce's free free cash flow into the future. Give them 35 times free cash flow because I had that level of predictability. It was like a government bond. It was a sure thing. You definitely were going to get those. And then we have AI do what AI's done over the course of the last several months.
5:05 And people just said something very rational. I can't see as far into the future. So, I'm going to pay less for the terminal value. I'm going to pay less for those future free cash flows. I'm not penalizing them because they're missing their numbers today. I'm just putting it in the too hard bucket because I can't predict those future numbers. So, the only way that reverses, Scott, is those companies have to accelerate their core revenues and show that they are beneficiaries of AI. The companies that do that, data bricks is accelerating their core revenues. I think this quarter they're they grew over 60%. Snowflake, Click House, these are companies that are accelerating their core revenues because AI relies on them. I think they'll do fine, but application software where I can't see into the future, they're going to have lower multiples.
5:48 >> I'll tell you, this week was especially acute in some of the moves on the news of this updated tool from Anthropic, which you're an investor in. Of course, that speaks to me of the the marketplace and the investment community doesn't necessarily know even yet how to assess the level to which software is going to be disrupted and by whom and by how. >> And even a simple what appears to be a simple update or an upgrade from an anthropic causes software names to go down. It causes private credit names to go down because they're exposed in their loans to software businesses. We're still trying to get our arms, it feels like, around this exploding technology and the impact it's going to have, >> right? And it's and it's exponential the rate of change, the rate of improvement of these models. We had a a step function improvement in the first or second week in in December and now we just had release yesterday OpenAI 5.3 codeex that that we'll hear from Jensen about another big step function. So when you're in the middle of exponential change investors just say hold on a second fog of war. I can't predict 35 years into the future of those free cash flows. So I have to pull it in a little bit. The the stock price comes down and people say hey why is the stock price coming down? They're not missing earnings. They're not missing revenue today. But I'm telling you, that's why because investors have a much harder time, you know, giving them credit for what's going to happen in the future.
7:20 >> The Super Bowl here in Santa Clara, right in Nvidia's backyard. And we are joined now by the company's founder and CEO, Jensen Wong. Brad Gersonner is of course still with us as well. And I can't tell you how happy we are to have you. Thank you. >> Thanks. It's great to be here. Welcome to Santa Clara. This is our backyard. I'm a mile up the road. >> Yeah, I was going to say you couldn't actually walk over here, but you're here. And you said you've never been here before.
7:42 >> Well, I've been not like this. Not like this. Look at all these tents. It's incredible. It's going to be a festival. >> So, it's an interesting time to have you obviously, which anytime is, but especially given what's been happening within the market. Today looks a lot different than the last couple of days have the market obviously concerned with what's happening on the spending side of the the hyperscalers and this big buildout in AI. What's your take from that? the way the market continues to react to this >> demand is skyhigh and there's a fundamental reason for that. We're in the once in a generation infrastructure buildout. This is the largest infrastructure buildout in human history and there's a fundamental reason for that. Artificial intelligence is going to fundamentally change how we compute everything. Everything from database processing, the way we do search, the way we do recommener systems, the you shop, the way you watch movies, and of course these new agentic systems that are being that that are being developed and evolved. Last year, this last year, we saw an inflection point in AI. AI became super useful.
8:42 No longer hallucinating. It's generating informed content. It's reasoning. It's thinking. It's doing research. It's able to use tools. All of a sudden, AI over the last couple of years went from being curious to super useful. The inflection point also came with it profitable tokens. Anthropic is making great money. OpenAI is making great money. If they could have twice as much compute, the revenues will go up four times as much. I mean, literally these guys are so demand cons so compute constrained and the demand is so incredibly great. the number of enterprise users, the number of consumer users, the number of startups are being built on top of these companies, it's just going through the roof.
9:24 >> So when you see numbers that are frankly remarkable that $660 billion this year will be spent by the hyperscalers as we continue to learn like we did from Amazon last night, you sit back and think to yourself that's completely justified based on what you see. >> It is appropriate and sustainable. And the reason for that is because all of these companies cash flows are going to start rising. You know, people are comparing it to cash flows. One of those numbers are wrong. It's just the cash flow is wrong. We are addressing the largest software opportunity in history.
9:59 For the very first time, software is not just a tool. A tool is like Excel. Now software uses tools. So these AIs use Excel. And so I think the the the opportunity to to for this new new era of software is incredible and we're seeing it already moving the earnings of Meta. Nobody uses AI better than Meta. And so if you look at the way that they're using AI, AI went from a recommener system running on CPUs to now a generative AI agentic system that is making recommendations.
10:35 Everything from the way they social media works and the way they they recommend ads and help advertisers create content has fundamentally been changed and their earnings show it and that's the reason why they're investing so hard. They see just a much larger future potential for it. And not just one company. This is going to affect AWS's shopping and the way they recommend goods. This is going to affect how Microsoft's enterprise software works. Every single company is is sees the same inflection point and that's why everybody leaning in so hard. I feel like that's the point that you were it's an interesting point. It sort of turns the way you you need to think about these businesses on its head that if you're just fixated on the spending side as you were talking earlier about oh they're spending such a huge portion of their free cash flow you're kind of missing the story. The market needs to get its arms around that. Do you as well as an investor?
11:24 >> Yes. I if if you turn the clock back, Scott, to 2008, 2009, right, Amazon could have taken their profits and sent them back to us by way of dividends. Instead, Jeff Bezos said, "I'm going to invest in this thing called AWS." Think of it as digging a gold mine. You have to spend a lot of money to dig the gold mine before you get the before you get the gold out. But it costs something up front. Now the question is do you believe Andy Jasse and Mark you know Mark Zuckerberg and Sundar and Jensen that this opportunity is that big or do you have a special insight that causes you to understand there's no gold in the bottom of the gold mine? I'll just tell you this. I want my personal net worth I want my funds net worth levered against AI because all human progress is going to be derived from machines helping humans think and augment human thinking.
12:12 And so whether it's owning Nvidia, which is our largest public position, or whether it's Anthropic or Open AI, they're doing it at scale. There are increasing advantages to scale, right? And so I think it's hard for people to get their arms around now, just like it was in 2008 and 2009. But thank god Jeff Bezos did that. Now it's $140 billion business generating 30 billion a year in annual profits that people criticized him for investing in back then. How can I just It's incredible that OpenAI and Anthropic are 20 billion dollar run rate companies and accelerating growth all at the same time.
12:49 >> These are extraordinary things and it makes perfect sense from where we sit. >> How can we be so certain that the amount of compute we think we'll need and that we continue to hear from CEOs like you that we will need is actually going to come to fruition. Isn't it inevitable that we're going to at some point overdo it, but we're not going to know that until it's too late? >> It's not like roads. Roads once you lay it down, it stays fairly useful for a long time. The way computers work is you build up the infrastructure, but then you start replacing it five, six, seven years later. And so I think it's going to take us some seven years, eight years to build up to the level that we have to sustain. And then after that, we're going to be refreshing and slightly growing. And so we've got several years of build out ahead of us. The the important thing is this. You have to go back to first principles. Computing has fundamentally changed. It used to be pre-recorded.
13:45 Excel and PowerPoint and all these tools and all the software is pre-ompiled. They compiled it and they sent it to us. The way software works now because it's contextually aware. Every single time you use it, it takes into consideration the context, who you are, what you're asking about, what's happening to the world, what other information you give it, the context. And every single context is different and every single response is different. So from now on, every single pixel, every single beep of a sound, every video that comes out of the computer is generated in real time.
14:19 And that's the reason why we need computers to operate software at such a large scale going forward. And all these tokens are what we call intelligence. And for the first time we have we're generating something of tremendous value intelligence as numbers. And these things we as I mentioned earlier this last year we went through an inflection point because these tokens became profitable and so we just have to make more of it. Can you blame in some ways investors who have PTSD from the last time tech went through this revolution and evolution at the same time for seeing certain things that remind them of then and worry that they'll happen again? It's good to always reflect on history. history informs us but history doesn't repeat. And so you have to take into consideration what's actually happening. Always go back to first principles and think about what is actually happening. right now the fundamental difference a huge difference between now and some things that happened in the past with the internet there was a ton of dark fiber >> there is no there are no dark GPUs 100% of the GPUs are rented in fact GPUs that we sold 6 years ago the prices are going up it's not like it's antique I mean it's incredible it's like a fine wine the demand is so high that GPUs I sold six years ago are going up in price and so I I think the demand is just incredibly high for the reasons that I just said. One, we went through an inflection point. AI has become useful and very very capable. Two, the adoption of it is incredibly high. And three, because these AIs are thinking, the amount of computation it needs is great.
16:00 And so to the extent that people continues to pay for the AI with, you know, and the AI companies are able to generate a profit from that, they're going to keep on doubling, doubling, doubling, doubling. You get asked about the bubble question all the time, but to Jensen's point, back then, you know, you're wrapping fiber around the earth five times and you realize, well, that was a little too much. >> How are you thinking about that question relative to how we answered it?
16:23 >> It turns out that fiber had 7% utilization. We called it dark fiber because we knew when they were putting it in the ground, it was it was dark. It wasn't we're building for the future and we were borrowing money to do that and we only had 30 million people connected to broadband internet. Today we have billions of people who are using using this getting benefit daily. But but what one of the things I would say Scott is one of the questions here Jensen is okay if you accept that all of this needs to be built there's a lot of chatter Andy Jasse said last night on the Amazon call yeah but we have an inference chip that's 40% you know cost 40% less there's a lot of talk about all these other chips. So ho how are you confident that Nvidia is going to continue to maintain your share right the leadership position in terms of all of this buildout as you look forward >> nobody develops the technology more advanced than ours at a pace higher than ours and at a scale as large as ours. We have the largest supply chain of any computing company in history. We have a giant supply chain and so so our technology is the best. Now that translates to the lowest cost tokens because when your performance is 10 times your cost is 30% higher than your token cost >> is maybe 1/5 and so that advantage is the reason why people adopt our technology. Our demand Nvidia's demand in AWS is incredibly high. And so we're we're just super excited about the the buildout that we're doing with them.
17:54 We're going to we're going to have a very significant buildout this year in the next couple of years. You know, AWS is doing great. They're a great partner of ours. Consumption Nvidia through AWS is gigantic. Brad raises a really interesting question as this these relationships are so unique in that these companies that are spending all of this money, they are customers of yours and they're competitors of yours. and they continue to make it clear that they want to be bigger competitors of yours.
18:26 Andy Jasse and Brad was alluding to what he said on the call. Quote, "Customers are starving for better price performance, and typically and understandably, the dominant early leaders aren't in a hurry to make that happen. They have other priorities. I mean, Alphabet's making its own chips, too. These companies love you. They need you, but they're coming after you, too. >> It's okay. You know, none of that bothers me. I'm the we're the only company in the world that takes our roadmap and all of our secrets and we share it to our customers who are also building their own chips internally.
18:59 That's how much confidence we have. The reason for that is because Nvidia is the only platform and software likes platforms. Software are built on platforms. If it's built on Nvidia, it runs best on Nvidia. There are tens of thousands of startups around the world, developers all over the world who build on Nvidia. And so by definition, it runs best on NVIDIA. We're the only architecture that's in every cloud. We're in AWS, we're in Azure, we're in OCI, we're in GCP, we're everywhere.
19:28 We're exposed to AI that is well beyond just the things that we're talking about here. Look at the stuff that we're doing in digital biology and life sciences. Our big partnership with Lily, they're building AI supercomput, the physical AI. We're the only company really addressing all of the world's autonomous vehicles and you know all the robotic systems and all the physical sciences. The world of AI goes well beyond language. It represents you know probably 60% of the world's AI activity.
19:58 The rest of the other 40% that's practically all NVIDIA. And so our exposure to AI is broad. We're on every single platform. We're in the cloud. We're on the ground. We're in autonomous vehicles. I mean, we're just simply everywhere. And the key is just we have so many developers. When it's built on Nvidia, it runs best on Nvidia. >> Who do you consider to be your biggest competitor? >> Well, the thing that we worry about most is just making sure that AI is effective. It has to work. The technology is has great promise. Some enormous breakthroughs. Chat GPT was a breakthrough. OpenAI's 01 was a breakthrough this last year. just recently. claude code is an inflection and then now chatbt 5.3 codeex another inflection you know we want to make sure that AI continues to be incredibly effective we want to make sure that protein AIs chemical AIs physical AIs robotics AI self-driving car AIs open model AIs all of these different AI industries have to flourish because the world is gigantic remember AI is not a technology only it's a five layer cake it's its energy, its chips, its infrastructure, its models, and ultimately its applications. We need to make sure that all of the world's applications are revolutionized because of AI. When that happens, the demand will continue to grow and we would be successful in helping the world reinvent computing for the first time. And so our focus, you see my focus, all the investments that we make, all the partnership that we make, it goes across all five layers of the cake. It goes across all the different domains of applications because you know it's going to it's going to take the whole planet to change the computing infrastructure for the world.
21:44 >> Okay. Speaking of that, the whole planet are the Chinese competitors. They're they're customers. They they want to be customers. You'd like them to be bigger customers than they are now. Aren't they competitors of ours? >> No doubt. I think the the way to think about that is that we got competitors. United States has competitors all over the world. And if you break down AI and think about AI as a five layer cake, the US has to win at every single layer. We have to win at the energy layer. This is an area that quite frankly we've got a lot of work to do and we're going to have to work hard to make sure that we win the energy layer, the chip layer. We have to make sure that every software company in the world uses American tech stacks so that our chips are the best in the world. We have to win at the model layer. We have to win at the application layer. so on so forth. Every single layer has a battle and nobody could take it for granted. everyone every every one of the layers have to go win on their own.
22:42 we want to win win win together, but every layer has to go win. >> Do you worry about Brad another deepseek moment that the Chinese to Jensen's point, they're not sitting back idle and suggesting, okay, US, you win. We're playing now for second place. They're playing to win. >> No, for sure. And in fact, I I hear disturbing things all the time about the Chinese stack making great inroads in the Middle East and in the southern hemisphere, etc., because frankly, they're working really quickly to put their chips and their models, their open- source models, Deep Seek, Kimmy, K2, Quen, etc., and exporting those to the world. So Jensen was an important part with David Saxs, our our our AIS are putting forth an American agenda to accelerate the American AI stack around the world. We're still not going fast enough. We need to accelerate and make that go faster. You're absolutely right about that. And I think with respect to China, listen, there's a lot of fear that why would you give China any chips?
23:40 Why would you? They already have chips. They already have incredible AI. The US wins when the world runs on American technology. And I think we need to focus on running the fastest race we can possibly run, right? And if we do that, then just like the internet, our values will be embedded and imbued around the world in the in in the US AI stack. But the but make no mistake about it, I think the Chinese are out in front and we got to up our game. We got to get faster in Washington and we got to get out there and thank God we have Nvidia and the leading technologies in the world in the United States, right? That just doesn't happen, right? We create the culture and the climate for innovation and entrepreneurialism. We're sitting here in Santa Clara. AI has occurred in San Francisco and Santa Clara because of the great innovations we have. We got to make sure we protect that and accelerate.
24:28 >> You mentioned some of the the criticism that's been around. Should we sell chips to the Chinese because they they want to kick our butts in AI to to that point. >> China is a very large market. It makes no sense to forfeit to concede a large market if you would like to win globally. The American chip industry should do everything we can to win all over the world, including in the Chinese market. We have to compete. It's their home turf. They got all kinds of advantages. And so, we have to go compete hard. But there is no question conceding half of the world's markets make no sense if you want to win globally. So when someone like Daario Amod from Anthropic says it's crazy, those are that's his word for the US to allow companies to sell there that that they're an adversary. You you wholly disagree with that?
25:19 >> I completely disagree with that. Of course, we would never allow Chinese military to use American technology. But that's that that export control is well established. Of course, we would like to then go and compete in the marketplace. We want, of course, also for Anthropic and OpenAI and all of our American companies to succeed. They've got to work hard. They've got to go run fast. We make sure that we offer them the best of all of our technologies. We give them all the advantages that we can. But in the final analysis, we've got while we're helping them succeed, we've got to go win around the world and not forfeit markets to anybody. You mentioned Open AI and I got to ask you because this has been a week, hasn't it? With the the back and forth of, you know, some of the criticism that had allegedly come from the Open AI side about you and maybe some about from you about them in a couple of reports, which you've addressed and you did the other day with with my colleague Jim Kramer. but are we really to believe that there's no there there's no friction between the two of you? There's really no drama between the two of you in in any point?
26:26 No, there isn't. Yeah, there just isn't. the the the new AI models at OpenAI needs a lot more compute capability than our last generation hoppers. That is for sure. The amount of computation it needs, the model's 10 times larger, the amount of comput it thinks 10 times longer. And so it needs a lot more computation than our last generation, which is exactly the reason why Grace Blackwell MVLink72 was invented. and their latest generation model 5.3 codeex revolutionary trained on Blackwell MVLink 72 and so they need our new generation of technology that that goes without saying and that's the reason why Nvidia is moving so fast you know every single year we're coming up with 5x 10x more capability and we just got to keep that pace going nobody else in the world could do this like we do because as as you know these are not chips only these are AI infrastructure and We're revolutionizing, innovating AI infrastructure at a scale nobody's ever seen, at a pace nobody's ever seen, and all because the amount of computation necessary for AI is growing so fast. But otherwise, the rest of that stuff is just fake news.
27:39 >> You know, I think there was a moment, Scott, when everybody thought that there was going to be like exclusive partnerships, like Amazon was going to be anthropic and, you know, Microsoft was going to be open AI and Nvidia would stay in one of those lanes and pick a winner. It's too big. Everybody's going to be everywhere, right? These guys are going to, you know, be have open AI models. They're going to have anthropic models. They're going to have DeepSeek models running on, you know, on their chips. And I think when you look at this next round of funding, right, Nvidia and Microsoft just invested in Anthropic, right? Open AI probably is going to get investment. There's a lot of rumors out there from, you know, from Amazon or others. Like none of that should surprise anybody. If you want to be in the game of AI, these are the two frontier labs in America. two leading labs. Put X.AI in there as well. It's going to be fascinating what they do with Starlink and data centers in space.
28:29 And you're also part you're also big investor and partner and partners there. So I think you should expect that as the new normal and you know like we like to make a lot out of these things because of course they're competing. Everybody's competing to make sure they're the lead in those investments. But I think here's the thing that I think it tells you. Everybody had this idea the last couple months. OpenAI is dead and enthropic to the moon, right? Open AAI just launched another incredible model yesterday with Codex. They're going to raise a lot of money. I can tell you there's a lot of money that wants to invest strategic money, financial money, etc.
29:03 >> All right, this is an interesting. >> Can you imagine being large early investors in Google, Amazon, and Meta? >> Incredible. >> Insane. And that's what we're looking at. >> That's a perfect place to leave it. as we said, in your backyard here in Santa Clara, I can't thank you enough for spending time with us, Jensen. Thanks so much. >> Thank you very much. >> Pleasure. And Brad, you're going to stick around cuz we got more work to do.
29:23 So, you're not going anywhere. >> This year, every American child gets an investment account and millions will be preunded. That's free money. >> We can all expand American dream. >> Sign me up. That was a clip from an ad that will run during the pregame for the Super Bowl for the Invest America Trump accounts, a program pioneered by Brad Gersonner and championed by the Trump administration. On that note, we're joined now by Treasury Secretary Scott Besson. Mr.
29:55 Secretary, it's great to have you. Welcome, >> Scott. It's good to be on with you. We just showed the ad that's going to run during the pregame as we said and Brad has been such a champion of this, but so has as I said the administration. How is the roll out going from what we saw was already more than 1 million families who've signed up. >> it's it's going fantastic. And I want to give a shout shout out to your parent company Comcast. senior management there has been very helpful helping us place the Super Bowl ad and we couldn't we couldn't be more excited that we we had last Wednesday here in DC the Wednesday 10 days ago the big kickoff where well over a million visits to the site we'll roll it out July the the accounts will go live July 5th and we've encouraged everyone to sign up in advance trumpaccount.gov gov.
30:53 H >> truly how how large do you think this could grow to? >> well Scott, currently 38% of Americans have no household exposure to equities. And the real goal is to make sure that every child, every family, every household gets to participate in our great growth engine in the American economy. You just just had Jensen on. So you know companies like companies like Nvidia, companies like Walmart, great American success stories and everyone everyone should have a share of that and understand how the economy works, how the companies interact with the economy and what it feel what it's like to be a shareholder and participate in that.
31:42 >> And and Mr. Secretary, you know that I have Brad Gersonner sitting next to me quite obviously and and Brad, there are more companies that that you want to tell us about that are getting on board already, >> right? I mean, we had announcements today. It's great to see you you know Mr. Secretary, we had announcements today. The NFL is going to match for the kids of their employees. Comcast, like the secretary mentioned, the city of San Francisco, somebody's going to adopt a match for the kids in the city of San Francisco. Mayor Lurri, you're going to have on later today is going to talk about that. It just shows the art of the possible. Michael Dell tweeted earlier today. He says, "This changes everything. You can give money directly to America's kids. No middleman." And it's all enabled by the vision and the leadership of Scott Bsant and the president who said, "We're going to create an investment account for every child at birth. Every child is going to have on their phone an app. They're going to see they own a little bit of Nvidia, a little bit of Walmart, a little bit of Microsoft." Imagine that, Scott. The president said last week, 20 years from now, there will be a hundred million kids and families that have 3 to4 trillion in wealth that would have otherwise had zero because they start off with $1,000 and we add money to those accounts. and and and Brad, Mr.
32:54 Secretary, >> Brad, your your your vision, M. Michael Dell piling on and then the the president's leadership in putting this last July 4th into the one big beautiful bill is what is making all this possible. And the president's done peace deals, trade deals, and tax deals. The peace deals will obviously be enduring for decades to come. But I think there's a chance that these Trump accounts may be his greatest legacy because think that the children who are born born last year over the next couple of years in 18 years those will start rolling off or it may be that the individuals who get these accounts and everyone can create one for their family up for children up to age 18. only these four years will be funded with the $1,000 seed from the government. But as these accounts mature when you're 18 they can be rolled into a retirement account. So the full effect of these may not be felt on our national psyche for 20 30 40 even 60 years but I I am convinced that this will be a real time experiment in financial literacy and financial education which we here at Treasury support every day.
34:14 We we're going to continue to follow it obviously because it was quite literally birthed. the idea was on on CNBC with when Brad and me had a had a conversation about it years ago. We've got about 90 seconds left as we wrap things up. you feel pretty good about where your exposure is to to the market here. >> Yeah. I I mean listen I you got to give a lot of credit to Secretary Bessant. He's right. The flight path for the United States looks great. Right. We've got GDP accelerating. We got inflation well anchored you know coming in below expectations. You got tailwinds coming from AI investment. Tailwinds coming from the re-industrialization investment you know that that's occurring across the country. And so like the economic backdrop is really strong for the United States and on a relative basis around the world. I think one of the strongest places we've ever been. And then we have you know all the stuff going on in earnings and you see the earnings numbers they're great. So I you know the market is selling off. Scott multiples are now well below you know their average and I think it's creating some really interesting buying opportunities.
35:21 >> Yeah. And on the the new Fed chair you happy with the the selection? >> Yes. I mean listen I think that Kevin Hasset would have been a great suggest a great choice as well. But there's no doubt in my mind that this Fed will be independent number one and number two they're going to follow the facts. Kevin War said if inflation goes up like it did in June of 21, he would he would have raised rates. Now he's going to cut rates because inflation's anchored and we're in a place we can do it.
35:46 >> This was really fun today. I can't thank you enough for bringing by some friends, too. That's Brad Gersonner of Altimter joining