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♪ >> C CHINA MAY HAVE JUST RESET THE AI RACE. RACING AMERICA'S BIGGEST ADVANTAGES, AND SOME SAY WASHINGTON MAY BE MAKING THE PROBLEM WORSE. WELCOME TO THE BIG MONEY SHOW. I AM HERE WITH MY FABULOUS COHOST TAYLOR RIGGS, LOU BASS, BETHANY'S, JACKIE DEANGELIS, AND WITH US FOR THIS OUR FOX BUSINESS CONTRIBUTOR JONATHAN KOENIG. THE RACE IS NOT COMING, IT IS HERE. CHINESE AI MODEL, A CHINESE AI MODEL CAN NOW GO TOE TO TOE WITH SOME OF AMERICA'S BEST SYSTEMS LIKE ANTHROPIC'S MYTHOS WHEN IT COMES TO FINDING SOFTWARE VULNERABILITIES. THIS TECHNOLOGY COULD HELP DEFEND CRITICAL INFRASTRUCTURE OR HELP HACK INTO IT. CALLING TO WASHINGTON, THE MOVE TO RESTRICT ACCESS TO AMERICA'S MOST ADVANCED MODELS, ANTHROPIC'S MYTHOS AND ITS COMMERCIAL, WELL, IT WAS COMMERCIALLY AVAILABLE FABLE FIVE, EVEN FOR GOVERNMENT USERS. CHINA PUSHING OPEN SOURCE ALTERNATIVES, THEY CAN BE DOWNLOADING, MODIFIED, AND DEPLOYED WORLDWIDE. BEIJING IS TREATING ARTIFICIAL INTELLIGENCE LESS LIKE A SILICON VALLEY PRODUCT AND MORE LIKE A STRATEGIC ASSET, AS WE SHOULD BE. AS THE CAPABILITY GAP NARROWS, THE COMPANY THAT OWNS AI, ADVANCES AI WILL WRITE THE RULES OF THE NEW ECONOMY AND WORLD DOMINANCE. HOW ARE YOU SEEING THIS? I SAID LAST WEEK THAT THE SELLOFF IN TECH, I ATTRIBUTED IT DIRECTLY TO WHAT WAS GOING ON WITH WASHINGTON BIG FOOTING ANTHROPIC'S MYTHOS AND FABLE FIVE. IT REALLY SHOOK SILICON VALLEY IN TERMS OF WHAT WAS HAPPENING, JUST THE INABILITY FOR CORPORATE CUSTOMERS TO USE IT. HOW DO YOU SEE THIS WITH CHINA?
>> NEW WEEK, NEW LEADER. THIS RACE IS UNFOLDING RIGHT BEFORE OUR EYES ON A LEVEL WE'VE NEVER SEEN WITH TECHNOLOGY. SO MUCH SHOW ON THE HEELS OF TODAY'S REPORT. VOLUNTEER AND NVIDIA MADE AN ANNOUNCEMENT THAT BRINGS THIS FEATURE THAT THESE AI COMPANIES HAVE TO THE U.S. GOVERNMENT, AND THAT IS OPEN SOURCE, BEING ABLE TO MODIFY IT. THAT STARTS REMOVING SOME VULNERABILITIES. I THINK STAY TUNED BECAUSE NEXT WEEK WE COULD SEE THEM COMING OUT ALONG WITH THE LIKES OF ANTHROPIC AND OPEN AI TALKING ABOUT THE LEADERSHIP CHANGING HANDS YET AGAIN. THIS IS A CRITICAL ASSET, STRATEGIC ASSET FOR NATIONAL SECURITY AND ITS ECONOMIC INDEPENDENCE.
>> WHAT YOU JUST SAID TO VOLUNTEER AND HAD DONE. HOW DOES THAT CHANGE WHAT THE TRUMP ADMINISTRATION HAS DONE TO FORCE THE SHUTDOWN OF MYTHOS AND FABLE FIVE?
>> I THINK MICHAEL HE HAD THE BEST WAY TO DESCRIBE WHAT IT DOES. NOW, THE PARTNERSHIP WITH NVIDIA, YOU CAN CREATE A CUSTOM OPERATING SYSTEM THAT CAN WORK WITH THE MODELS AND NOT BE SUBJECTED TO THE VULNERABILITIES. YOU CAN PATCH THEM UP IN THEIR OWN LARGE LANGUAGE MODEL. IT IS CRITICAL FOR GOVERNMENTS. WE DO NOT ALL WANT TO BE TAPPING THE SAME RESOURCE.
>> IT STILL DOES NOT MAKE THESE MODELS AVAILABLE.
>> BUT IT MAKES EVERYTHING THAT IS AVAILABLE CUSTOMIZABLE. WE CAN NOW LEAPFROG AROUND THEM. WE DO NOT NEED THAT RELEASE. WE CAN DEVELOP OFF THE BASE OF 5.5 AND SAY LET'S TAKE IT TO THE NEXT LEVEL BECAUSE WE KNOW THE FEATURES.
>> I AM NOT WORRIED ABOUT CHINA. LOOK AT THE CHINESE STOCK MARKET. IN 2006, IT IS NOT SURPRISING. THE MORE AUTHORITARIAN THE MORE TACKED DOWN CHINA'S ECONOMY HAS GOTTEN, THAT IS WHAT HAS ALLOWED US TO HAVE THIS DOMINANCE IN THE AI WORLD. IMAGINE TELLING THEM BACK IN 1904, WE NEED THE GOVERNMENT MONOPOLY OVER THE WORLD OF FRIGHT. HAVING A HANDS-OFF PRODUCT HERE, A HANDS-OFF APPROACH. THAT IS WHAT WILL MAKE THIS PRODUCT. I THINK THAT WE REALLY HAVE AN OPPORTUNITY TO MAKE AMERICA GREAT BY THE U.S. GETTING A HANDS-OFF APPROACH AND TRULY LETTING AMERICA BE GREAT AGAIN WITH AN APPROACH TO AI DOMINANCE IN AMERICA.
>> IMAGINE RUNNING A SPRING THAN SOMEONE GRABBING YOUR SHIRT. THE GOVERNMENT NOW IS HOLDING THE U.S. BACK, AND I THINK THAT THAT IS ABSOLUTELY FAIR.
>> THEY DID NOT GRAB THE SHIRT, THEY NEED TO CAP NOT JUST ANTHROPIC BUT LITERALLY THE PROGRESS OF AN ENTIRE NATION AND INDUSTRY.
>> I DO NOT THINK IT IS EVER SET UP THE FACT THAT WE HAVE A TECHNOLOGICAL ARMS RACE HERE THAT IS MORE DIRE, MORE CONSEQUENTIAL THAN WHAT WE ARE DEALING WITH IN AI. THIS IS A GRUELING PUNCH IN THE RACE. I WONDER WHY YOU ARE NOT WORRIED ABOUT CHINA, JONATHAN? I AGREE WITH YOU THAT GOVERNMENT SHOULD BACK OFF ON THIS. I DO NOT SEE WHY WE HAVE TO WAIT AND FIGURE OUT WORKAROUNDS AND MAKE IT HARDER FOR PEOPLE IN THE UNITED STATES TO USE THE TECHNOLOGY WHEN THE TECHNOLOGY INEVITABLY WILL BE OUT THERE. MY QUESTION IS NATIONAL SECURITY. I GET IT. AN ARGUMENT FIRST SO MANY DIFFERENT THINGS NOW, IT BECOMES A NATIONAL SECURITY ISSUE. I AM LOOKING AT THIS FROM A STANDPOINT OF FREE MARKETS. LET THEM DO WHAT THEY NEED TO DO. IF YOU RELEASE SOMETHING THAT IS POTENTIALLY DANGEROUS, THERE WILL BE A CORRECTION IN THE MARKETS, WILL FIGURE IT OUT, THE BUSINESSES WILL FIGURE IT OUT, OR THEY WILL GO OUT OF BUSINESS. I JUST DO NOT UNDERSTAND WHAT THIS IS HERE. IT REMINDS ME A LITTLE BIT OF WHAT WE SAW WITH THE BIDEN ADMINISTRATION. THEY WANT TO BE ABLE TO CONTROL IT. THEY DO NOT WANT IT OUT THERE BECAUSE IT WAS NOT WORKING WHAT THEY WERE TRYING TO DEAL. THESE PARAMETERS THE TRUMP ADMINISTRATION IS PUTTING IS REALLY HOLDING US BACK.
>> THERE THE HATRED I THINK OF ACHIEVEMENT TODAY. A HATRED OF PEOPLE'S ACCOMPLISHMENTS. LOOK AT THE WAY THAT PEOPLE SNEER AT ELON MUSK. AN INDIVIDUAL'S ACCOMPLISHMENT, EVEN IF THEY HAPPEN TO BE IN CHINA, EVEN CHINA ACCOMPLISHING SOMETHING, WE ALL BENEFIT. THE SAME WAY WE ALL BENEFIT FROM ELON MUSK. EVEN IF YOU NEVER INVESTED A DIME, YOU BENEFIT FROM THE CREATION. AS LONG AS AMERICA STAYS FREE, WE WILL STAY LIGHT YEARS AHEAD OF THE CHINESE. THAT IS WHY I'M NOT WORRIED ABOUT CHINESE SPIRIT. THE WORST THEY THEIR ECONOMY HAS BECOME FOR MORE THAN A DECADE.
>> I HEAR YOU. I AM NOT HERE TO CELEBRATE CHINA'S ACCOMPLISHMENTS.
>> AND THEY HAVE BEEN.
>> I AM JUST PERPLEXED AT THE REASONING BEHIND WHY THE GOVERNMENT IS STEPPING IN ON THIS PARTICULAR ISSUE. WHY WE OWN A PIECE OF INTEL OR WHY WE ARE LOOKING TO DOMINATE SOME OF THESE COMPANIES. YOU OPEN THE DOOR FOR THE NEXT PRESIDENT. IF IT'S NOT A REPUBLICAN TO ALL OF A SUDDEN GO AND TAKE THAT TO THE NEXT LEVEL. WHERE ARE WE GOING WITH THIS?
>> I AM TRYING TO WRESTLE WITH THIS. ONE GOVERNMENT INTERVENTION. I DO WANT SOME SMALL SET OF RULES. IF AMAZON GOES TO THE CONGRESS DEPARTMENT AND SAYS WE ARE STARTING TO NOTICE SOME THINGS WITH ANTHROPIC'S MYTHOS ROOT REALLY STARTING TO CRACK OR WE ARE SEEING A LOT OF THEM EXPLOIT SOME SECURITY VULNERABILITIES. AT THE END OF THE DAY, IT IS A COMPANY PROBLEM FOR NOT HAVING GOOD STRONG CYBERSECURITY DEFENSES. AS WE TALKED ABOUT LAST WEEK, I AM WONDERING IF THIS ADMINISTRATION IS ALSO THINKING THAT IT IS MY PROBLEM. I CANNOT PAY RENT BECAUSE MYTHOS TACKED HACKED OUT AND NOW MY BANK ACCOUNT IS DRAINED. THAT HAPPENS TO MILLIONS OF AMERICANS, AT THE END OF THE DAY, THEN THAT BECOMES OUR PROBLEM. IT'S NOT AN AMAZON PROBLEM OR A BIG PROBLEM, NOW IT IS MY ISSUE, TOO. I THINK THAT THE ADMINISTRATION MAY BE TRYING TO FIGURE OUT A LIGHT HANDED, SETTING UP SOME PARAMETERS, NOT JUST A FREE-FOR-ALL. NOT HAVING A HEAVY-HANDED APPROACH THAT CHINA IS HAVING.
>> AND WE HAVE THE TRUST IN THE GOVERNMENT TO DO THAT?
>> THAT IS NOT WHAT THEY HAVE DONE, THOUGH. THEY ARE SHUT DOWN THE MOST ADVANCED MODEL. INDIRECTLY THEY CAN SAY WE THE GOVERNMENT, THE TRUMP ADMINISTRATION DID NOT SHUT IT DOWN. ANTHROPIC HAS NO WAY OF FIGURING OUT WHO IS A FOREIGN NATIONAL AND WHO IS NOT. SO THEY JUST SHUT DOWN. I LOOKED THIS MORNING, IT IS NOT AVAILABLE. THAT DAMAGED NOT JUST THE COMMERCIAL CUSTOMERS OF ANTHROPIC, BUT IT HAS DAMAGED AMERICA. LOOK AT IT LIKE THIS. THIS IS THE ISSUE OF ANTHROPIC'S MODELS ARE OPEN AI MODELS BEING USED AS CYBER WEAPONS. BUT, A MODEL CAN ONLY BE USED AS A CYBER WEAPON IF THERE ARE VULNERABILITIES IN THESE SOFTWARE TO BE EXPLOITED. THOSE VULNERABILITIES, THOSE HOLES, IT IS THE RESPONSIBILITY OF THE BUSINESSES, THE BANKS AND THE AMAZONS FOR PATCHING THOSE VERY HOLES. SO, RIGHT NOW, WE ARE IN A POSITION WHERE THE NATION DOES NOT HAVE ANTHROPIC AND ITS MODELS TO HELP PATCH THE HOLES OR EVEN FIND THEM. SO, DOING REPORTING THIS MORNING, HERE IS ONE QUOTE. I WOULD RATHER DETECT VULNERABILITIES IN AMERICAN SOFTWARE AND TECHNOLOGY AND TO PATCH THOSE HOLES AND FIX THOSE HOLES BE IN THE HANDS OF AMERICAN COMPANIES, AND RIGHT NOW, THAT ABILITY IS IN CHINA.
>> US BEING A DANGER, OUR BANK ACCOUNTS. TO THIS POINT, IT IS KIND OF CHICKEN AND EGG TO ME. WHICH COMES FIRST. DO THOSE ABILITIES TO REPAIR THIS EVER COME TO FRUITION, OR DO COMPANIES GET LAZY ABOUT IT?
>> THEY ARE VULNERABLE TO CHINA AT THAT POINT.
>> I REMEMBERED THE SAME FEAR WHEN EBAY WAS HACKED. THE COMPANY STAYING WELL AHEAD OF THE HACKERS IF THEY STAY FREE. I AM NOT WORRIED ABOUT CHINA AS LONG AS AMERICAN DOMINANCE, YOU WILL SEE AMERICAN STOCKS FAR OUTPACE ANYTHING GOING ON IN TERMS OF INNOVATION IN CHINA.
>> CORPORATIONS ARE TRYING TO FIGURE OUT THEIR FIDUCIARY DUTY. BUT THEN WHAT ALSO IS YOUR DUTY TO USE AMERICAN TECHNOLOGY. POINT BASE CAME OUT THIS MORNING THIS CONVERSATION ABOUT TOKEN USAGE. THEY ARE CUTTING IT IN HALF. THEY ARE TRYING TO GET MORE ROI OUT OF THE TOKEN. IN PART TO DO SO, THEY ARE SHIFTING TO OPEN SOURCE FOR THE EASY STOCK. THEY ARE GOING TO GLM 5.2. YOU CAN, BUT, AGAIN, THIS KIND OF REMINDS ME WHEN WE LET CHINA JOINED THE WTO, WE ARE ALL ADDICTED TO THE CHEAP STUFF LIKE CHINA. SO COMPANY HAS A FIDUCIARY DUTY TO DELIVER THE PROFITS. CHEAP OPEN SOURCE FROM CHINA AND USE A GOOD AMERICAN STUFF, STUFF THE REST. LOOK HOW THAT PAID OFF.
>> THEY CANNOT USE THE GOOD AMERICAN STUFF. BECAUSE OF THE TRUMP ADMINISTRATION. THE TRUMP ADMINISTRATION HAS OPENLY THROWN SAND IN THE GEARS OF AMERICAN ARTIFICIAL INTELLIGENCE. THAT GIVES CHINA A LEG UP AND A LEAD.
>> OPENING UP A WAY SO CAN CUSTOMIZE THE LARGE LANGUAGE MODEL.
>> THAT IS NOT THE SAME THING. TRYING TO CON INVESTORS. NOW I HAVE THE SAME SPEED. THE SLIGHTLY INFERIOR MODEL.
>> AN OLD MUSCLE CAR.
>> OPENING UP THE CAR AND DROPPING IN THE ENGINE. IS IT TOO LATE? FIRST MOVER ADVANTAGE HERE. AND IF IT'S CHEAPER, WHY WOULDN'T THEY CONTINUE TO USE IT?
>> IT DOES NOT EXIST BECAUSE OF THE LEADERSHIP EVERY WEEK. DO YOU BELIEVE EVERYTHING? THEY HAVE A COUPLE DAY LEAD. THE ADMINISTRATION IS MAKING IT LONGER. WE HAVE SEEN THIS TIME AND TIME AGAIN. LIGHT YEARS AHEAD OF ANTHROPIC. THIS IS A THORNY ISSUE. YOU ARE THINKING NATIONAL SECURITY, WHICH I THINK IS ABSOLUTELY APPROPRIATE. YOU HAVE TO HAVE THOSE NAMES. THE MIDDLE LAYER. THE OPERATING SYSTEM. TRUST AMERICAN INNOVATION AND THEY WILL EVENTUALLY GET IT RIGHT. YOU CANNOT JUST LET THIS GO AND INNOVATE UNBRIDLED BECAUSE THEY ARE TOO MANY NEGATIVE IMPLICATIONS ON THE OTHER SIDE. THERE HAS TO BE SOME JUST PUMPING THE BRAKES.
>> A LOT. CHINESE GOVERNMENT IS PRIMARILY OWNED, THE ECONOMY IS OWNED BY THE CHINESE GOVERNMENT.
>> WHEN IT COMES TO THE TECHNOLOGY COMPANIES, THEY ARE LETTING THEM GO BECAUSE THEY WANT TO BE SPIRIT. WE ARE HAMSTRUNG BY REGULATION.
>> WE DO NOT KNOW WHAT THEY NEED. THE MARKET IS BIGGER THAN THE U.S. IF YOU ARE SERIOUS ABOUT AMERICAN COMPANIES DOMINATING, THE ADMINISTRATION WILL GET OUT OF THE WAY BECAUSE YOU SHUT DOWN THE MOST ADVANCED MODELS FROM ONE OF THE BIGGEST LEADERS IN AMERICAN COMPANIES WILL.