Mega-cap tech companies are 'imperiled by A.I. in different ways', says ARK's futurist Brett Winton

DOING THE RIGHT THINGS FOR A

LONG PERIOD OF TIME, BUT RIGHT

NOW, IT SEEMS A BIT OF HYPE.

>> FOR MORE ON THIS, LET'S BRING

IN BRETT WINTON, "FAST MONEY'S"

FAVORITE FUTURIST.

THE ONLY ONE WE KNOW, ACTUALLY

JUST TO BE CLEAR, FOR AMAZON,

WHEN WE THINK ABOUT WHAT AMAZON

DOES ALREADY, I MEAN, IT KNOWS

WHAT BOOKS I WANT TO READ, IT

SHOWS WHAT FOOD I LIKE TO EAT,

ET CETERA, I MEAN, ON SOME

LEVELS, ISN'T A.I. ALREADY BEEN

IMPLEMENTED?

WHAT IS THE DIFFERENCE BETWEEN

WHAT AMAZON IS DOING NOW WITH

WHAT THEY WILL EMPLOY?

>> WELL, I THINK THAT THIS IS

MORE SPEAKING TO HOW AMAZON'S

FRONT END EXPERIENCE IS BROKEN

AND PERHAPS PROFOUNDLY BROKEN

BECAUSE OF THE WAY THEY

INTEGRATE THIRD PARTY PRODUCTS

ONTO THEIR PLATFORM.

I THINK AMAZON'S PLATFORM HAS A

LOT OF LEGACY DEBT TO HOW THE

BUSINESS HAS EVOLVED

SO IT'S NATURAL THEY TRY TO

APPLY NEW LANGUAGE MODELS TO

HELP USER DISCOVERY.

I THINK THROUGH THEIR SMART

SPEAKER NETWORKS, THAT'S MAYBE

BEEN A MORE PROMISING WAY THEY

CAN DELIVER USERS TO PRODUCTS

THAT THEY WANT TO BUY.

AND EVERY COMPANY'S GOING TO

HAVE TO ADAPT TO A.I

IT'S FUNNY, DAN, TO HEAR YOU

TALKING ABOUT, OH, THIS IS HYPE

OR NEAR TERM HYPE CYCLE, OUR

BELIEF IS THERE'S GOING TO BE

$90 TRILLION THAT ACURES TO THE

ENTERPRISE VALUE OF A.I.

SOFTWARE COMPANIES, BROADLY

SPEAKING

AND TO GIVE YOU A SENSE OF THAT

SCALE, CURRENT EQUITY MARKETS

ARE ON THE ORDER OF $100

TRILLION, SO, THERE'S A HUGE

BUSINESS VALUE OPPORTUNITY

THAT'S GOING TO BE KIND OF

ACCOMMODATED OVER THE COURSE OF

THIS BUSINESS CYCLE.

AMAZON, BECAUSE IT ANNOUNCED

THAT THE LARGE LANGUAGE MODEL AT

ITS FRONT END GOING TO TAKE

ADVANTAGE OF THAT?

PROBABLY NOT

MAYBE LEGACY INFRASTRUCTURE THEY

HAVE THAT THEY NEED TO UPGRADE

TO STAY COMPETITIVE WITH NIMBLE

COMPETITORS.

>> 90 TRILLION, BUT HOW MUCH IS

DESTROYED ON THE OTHER SIDE OF

IT

I'M JUST CURIOUS, BECAUSE IT

SOUNDS LIKE AN AMAZING THING

THAT AMAZON IS GOING TO BE DOING

THIS, BUT IF YOU THINK ABOUT HOW

AMAZON IS WORKING RIGHT NOW, IF

YOU SEARCH FOR SOMETHING, THE

KNOCK ON AMAZON IN RECENT YEARS

IS THAT IT DELIVERS SPONSORED

CONTENT, PRODUCTS YOU MAY NOT

WANT, BUT YOU PAY FOR THE

ADVERTISING.

HOW DOES THAT WORK WHEN YOU'RE

DOING GENERATIVE A.I.?

DO WE KNOW IF THIS WILL BE AS

PROFITABLE FOR AMAZON AS ITS

CURRENT BUSINESS MODEL

>> I MEAN, THE SHORT ANSWER IS

NO, WE DON'T

AND THAT'S PART OF THE REASON

WHY I'M SURPRISED THAT THE

SHARES RALLIED ON THE NEWS,

BECAUSE THEY DO HAVE AN

ADVERTISING BUSINESS AND

COMPANIES BASICALLY, MERCHANTS

JOCKEYING TO APPEAR HIGHER ON

THEIR RANKINGS AND USING A LARGE

LANGUAGE MODEL COULD BREAK THAT

AND PERHAPS PROFOUNDLY

GOOGLE FACES THE SAME DILEMMA.

I THINK THE -- IT'S INTERESTING

TO ME THAT THESE LARGE, YOU

KNOW, MEG KA CAP TECH COMPANIES

HAVE RALLIED OVER THE COURSE OF

THE LAST FEW MONTHS WHEN IT

SEEMS TO ME THAT THE LIKELY

OUTPUT OF A.I. IS TO ENABLE

THEIR SMALLER AND MORE NIMBLE

COMPETITORS TO, YOU KNOW, NIBBLE

AT THEIR HEELS, WHILE THEY USE

THESE TECHNOLOGIES TO TRY TO

BEAT EACH OTHER OVER THE HEAD.

AND SO, IT'S NOT CLEAR TO ME

THAT IT ACCRUES TO ANY OF THE

MEGACAP TECH COMPANIES, DESPITE

WHAT THE MARKET SEEMS TO BE

IMBEDDING.

>> BRETT, SO, THAT'S MY

QUESTION

WHY THIS ANNOUNCEMENT FROM

AMAZON TODAY

THIS DOESN'T MAKE A LOT OF SENSE

TO ME, AND I KIND OF AGREE WITH

WHAT YOU'RE SAYING

WE CERTAINLY ARGUED CYNICALLY

THAT A.I. IS SOMETHING THAT'S

ALREADY -- AMAZON DIDN'T JUST

START INVESTING HERE, GOOGLE

SO WHAT ARE THEY -- IS IT AS

SIMPLE AS UNDERSTANDING WHAT

MOVES STOCKS, OR IS THERE MORE

GOING ON HERE?

>> I MEAN, SOMETIMES IT COULD BE

THAT THE LEADERSHIP TEAM

BELIEVES THAT THEIR EMPLOYEES

ARE NOT MOVING QUICKLY ENOUGH TO

DEPLOY TECHNOLOGY, AND SO IT'S A

WAY TO PROD THE INTERNAL

EMPLOYEE BASE THAT THIS IS

SOMETHING WE NEED TO TAKE

SERIOUSLY AND WE KNOW IT'S GOING

TO DISRUPT EXISTING BUSINESS

LINES AND WE AS AN ORGANIZATION

NEED TO MOVE MORE QUICKLY.

I CAN'T THINK EXACTLY WHY AMAZON

ANNOUNCED THIS NOW

I CAN SAY THAT ACROSS THE BOARD

ENTERPRISES ARE TAKING UP A.I.

VERY QUICKLY, BECAUSE THEY SEE

VERY CLEAR ROI CASES

AND IT'S NOT JUST IN THESE BIG

TECH COMPANIES THAT IT'S

HAPPENING.

THIS IS ACCELERATING EVERY

TECHNOLOGY ACROSS EVERY SECTOR,

AND I THINK BUSINESS LEADERS OR

SAVVY BUSINESS LEADERS KNOW THEY

NEED TO MOVE QUICKLY, OR ELSE

THEY'RE GOING TO FALL BEHIND

BECAUSE OF THE ARE PIDTY OF THE

PACE OF CHANGE

>> IT SOUNDS LIKE WHAT YOU'RE

SAYING IS THAT IF YOU WANT TO

PLAY A.I., IF YOU WANT TO INVEST

IN A.I., INVESTING IN THE FIVE

BIGGEST TECHNOLOGY COMPANIES IN

THE UNITED STATES, THAT'S NOT

THE WAY TO GO RIGHT NOW.

>> YEAH, I THINK -- I THINK IT

ACTUALLY IMPERILS EACH OF THEIR

BUSINESS MODELS IN A UNIQUE WAY.

APPLE HAS PRIVACY ISSUES THAT

PREVENTS IT FROM TAKING DATA

FROM USERS

GOOGLE HAS THEIR ENTIRE SEARCH

FRANCHISE THAT IS PUT AT RISK.

GOOGLE IS TRYING TO WOUND

MICROSOFT IN ITS OFFICE 365

PRODUCT.

AND HERE, AMAZON, A.I., IF

ANYTHING, IS LIKELY TO EMPOWER A

LOT OF INDEPENDENT MERCHANTS TO

OPERATE OUTSIDE OF AMAZON'S

PLATFORM AND EAT AWAY AT THE

LOGISTICS ADVANTAGE THEY HAVE IN

LOW COST DELIVERY.

BY ENABLING DRONE DELIVERY FROM

OUTSIDE VENDORS AND REALLY

PRODUCING POINT TO POINT

MOBILITY FOR PEOPLE.

IN THE MEANTIME, YOU JUST

MENTIONED TESLA AND ELON MUSK,

HEY, YOU KNOW, TESLA HAS THE

LARGEST DEPLOYED FLEET OF ROBOTS

IN THE WORLD

IF YOU LOOK AT AMAZON'S ROBOT

FLEET, THEY HAVE ROUGHLY 3,000

ROBOTS PER EMPLOYEE.

TESLA, IF YOU LOOK AT THEIR

VEHICLES, THEY HAVE 300,000 PER

EMPLOYEE IN TE