Early AirBnB investor Rick Heitzmann tackles Nvidia earnings after stock crosses $1,000 mark

Of NVIDIA at after hours highs in the back of a record-breaking earnings beat. A 10 for one stock split and a 262% jump in sales. The stock now well over $1000 a share, hitting 2 1/2 trillion dollars in market capitalization. Let's bring in venture capitalist. Known for his early investments in Airbnb, Pinterest and DraftKings, Rick Heitzman is managing partner at First Mark Capital. He thinks every everyone needs an AI strategy. It just certainly seems so, Rick. It seems like it and now people are putting in the money where their mouth is. So what you're seeing is the enterprise build out of those AI strategies beginning with NVIDIA. So talk to us about sort of the concentric circles around NVIDIA. If you're not going to invest in NVIDIA, how are you thinking about the next places to put your money? Yeah, so I think you're you're thinking about NVIDIA is the foundational layer, it's the hardware around it and you're seeing that build out probably starting 18 months ago, probably continue throughout the rest of the year. Then you think about what are the software players are going to sit on top of that and benefit from it. It's going to be the operating systems. You know, you had Steve on yesterday talking about Apple and their interoperability in their operating system, being able to personalize both personal and consumer and enterprise apps. Microsoft obviously at every level of that chain. And then there would be new consumer apps that sit on top of it. But just the next, the next level would be both the operating systems as well as the providers of data that will inform those large language models. Are you seeing in the early stages companies that are being built specifically around an AI business model, whether it be an app that helps you use AI or AI being you know very integral in terms of the company's workings? Yeah, I think there's there's two both on the enterprise and consumer side. There's probably a half dozen companies that are just learning how to do law. So it's just large language learning, learning models around law, replacing all those armies of of legal associates who fill in the blanks of legal forms and and doing that and doing a better job of that and then sub segments of bank loans, equity financings, all those different pieces. So the whole bingo board is being filled up really quickly. So. So how do you think about that environment? Are you thinking about what those people are going to do afterwards and where they're going to go or you simply just thinking about there's just going to be this massive build out? Like do I think about leisure time or what do I think we think about? We think about all of it, right. So my, my partner, Matt Turk has the mad landscape, which is the machine learning, artificial intelligence and data landscape. There's 1400 companies out there. So yeah, we only talk about NVIDIA. There's only a couple public ways to play it. But the public, the private markets is exploding. So we think about enterprise and consumer and then we think about sustainability because a lot of these companies are just getting started, zero revenue, some pre product. And what does it mean to be able to learn a language using that And is that value going to accrue to the Duolingos of the world, Is it going to accrue to the apples of the world or is it going to accrue to a new startup starting with three people building a French language specific application. Ricky, so as in the context of everyone needs to have an AI strategy and we talk all the time we've spent, we've spent months talking about how Google was lagging. Give your assessment of maybe the big, the big three, we're not really talking about which would be Amazon meta. I mean it's not the conversation for day or or even Google in terms of because at some point I still think there's the same pie for all of these companies that they it's almost like keeping pace. So your thoughts on that. So I think they all have some infrastructure right, of AWS or GCP. So they all have their own cloud, which will benefit both directly and indirectly as these large language models take a tremendous amount of processing power and tremendous amount of infrastructure and then who builds what on top. So Meta is open source in Lama and a lot of their tools because they're a laggard, right. So if you're a laggard, you open source to try and level the playing field. If you're ahead of the game, you close source to make sure you can monetize your benefits. So Meta is open sourcing, but being a little bit ahead of the game, Amazon is at least on the application side behind. I mean, Alexa is something I use almost every day, but it's not great, right. So how do they keep ahead of that game and I would say Microsoft is probably doing as well as good of a job as any and they're playing at every level of that ecosystem and doing a pretty good job executing especially with the relationship with Open AI. Rick, you've you've been thoughtful about the GLP One impact on society and and the the market share shifts and the capitalization shifts that we have seen play out. And I'm wondering if you know we we have made the sort of comparison between the optimism around GLP ones and the optimism around AI, the impact. So are there trades that you see, I mean way back when in the early days of GLP ones we were thinking Oh well people will eat less, they'll eat differently, they'll buy new clothes, they'll buy workout, you know things like that. Are there trades like that that are spurred off of this AI industrial revolution that we're not thinking, I mean when BK when you mentioned free time because people will have free time because they are more productive. That's right. I don't know. Yeah, I mean, so there has been a thing, I mean, even Nestle announcing that you have, you know, in this specific, just the GLP one takers of new whole areas of food. I think there's going to be something in AI and it's going to be you know what is your personal assistant do? If your AI could tell you what time you have to leave for your Uber to catch your airplane and where you should eat that night and what's going to happen. So and how you should schedule your meeting and what you should talk about on fast money if all those things happen that frees up a person or a half a person to do whatever. But. And I think the great, the great thing is no matter how much we thought the Internet was going to make our lives incredibly simple and so much more leisure time, it just opens it up to do so many more things. So I don't think any of us are any less busy than we were before. The Internet different and you're just going to be different busy Me hopefully a little bit more efficient and hopefully having a little bit more leisure time to go and go to even a better restaurant. So can you just say we were almost out of time one company that you think will have a tremendous productivity boost as a result of AI, not that they're in the AI business. Oh, I think you're going to see the sector will probably be software. I think that you know software will be super powered by AI both on the productivity of programmers by using tools so they could program more. And every single software company has have a def, has had a hiring deficit over the last 20 years that that gap will be filled by AI and the software with that much better. So you return on investment which is how most enterprises buy software is going to be much greater because of the superpower. So I think hopefully and we'll see if that gets thrown up or the existing players will be even stronger if you think about companies like that are doing some automation like UI path today.