00:01 closed source. And for whatever reason, the closed source models are just much more expensive. >> So what do you do overall? It's more complicated, but you wouldn't necessarily short this market at this point. >> I would not. I've lightened up. I've taken — I'll give you an example. I sold my Google a couple of months ago.
00:23 I've owned Google. I can't even tell you how long I've owned Google, but I felt I wanted to reduce my exposure to AI. I haven't bought anything to replace it because buying something defensive or stapley is kind of a waste of time. Why, that doesn't go up. They don't go up. They — people either want to buy AI or they don't want to buy AI, but they don't want to shift out of it to buy Clorox.
00:54 >> So if this is a binary situation where AI succeeds and the market continues to push higher and higher. >> Correct. >> What happens if AI doesn't succeed? >> I think we have a big correction. >> How big? >> Now? That's a hard question. I don't know, but I mean, it's all one trade. It's literally one.
01:19 I mean, even people who think they're diversified because they own 60% stocks and 40% bonds are missing the fact that they're actually not diversified because of their 60%. More than 50% of it is tech and AI related. And of the 40% of bonds, most of the new issuance of bonds is AI related. So even people who think they're diversified because they own bonds are not really that diversified.
01:47 What scares me is that it's all one trade. So it better succeed. >> What are you doing if you've sold Google? Well, I mean, if you sold Alphabet, what else have you done? >> I'm just sitting. >> I've got cash. >> So I can try and figure out what to do. >> What would it take to get you to deploy that cash? >> I don't know yet.
02:11 I really don't. I mean, I don't think this debate is going to get settled within the next two weeks. >> We talk all the time about the Middle East, because you can say AI is driving everything, but you could also say oil prices are driving everything right now too. Oil prices are down 8%. You see the market's — >> up, right, significantly.
02:29 >> How much does that factor into it? Do tariffs factor into it? >> I think it factors in to a degree. I don't think this war is going to be over anytime soon. I think President Trump wants the Iranians to give up their nuclear fuel. And the Iranians are not going to give up their nuclear fuel.
02:49 So I don't think there's much to talk about. So we get these lulls, but then it doesn't do anything. >> But you're not worried about oil prices at this point. >> I think actually there's an oversupply. Yeah. That's why Halima, who was a guest on my show too, pointed out that China has basically stopped buying oil, which is why oil prices haven't gone up that much.
03:16 You would have thought oil prices would be 150 at this point, but they're not because there's actually an overproduction. And I also think some of these pipelines that are going to be able to avoid the Strait are pretty close to being finished. >> Yeah. Next year, I think maybe 2027 is when you hear. >> That's why I'm not really all that worried about oil prices.
03:37 >> I mean, AI is going to be something. I don't — like you, I'm not sure what, but does the, for lack of a better term, the bubble popping, does it come from people slowing down on the build out, or does it come with the promise of what it's supposed to do disappointing people? >> I don't necessarily think the latter. It's going to be.
04:01 I think. >> It'll be amazing. >> It's going to be — it's going to be something, something really good. That doesn't mean that everybody succeeds. That doesn't mean that. >> Circular deals, the latest Nvidia deal. You got to read it and it's like they're going to back this, but then they're going to provide money for OpenAI to buy the chips.
04:24 And it's so incestuous. >> It's convoluted. >> It's totally convoluted. You don't know if there's any real profitability in any of the machinations that eventually — >> there probably is for Nvidia. Like he was saying. >> Well, there is. >> Yes, for Nvidia. They're not doing it for free.
04:43 But look, again, I think one of the bottlenecks is that Anthropic and OpenAI are responsible for a lot of the spending that people are doing. And Anthropic and OpenAI have models that are now much more expensive than the competition. And I think that is a potential bottleneck. >> A much better cook because of AI. >> And you are.
05:05 >> Yes. And griller. Okay. When I grill things on much, I mean far better. Everything is juicier, taste better. I do it a totally different way. I'm using the grill that has different zones. If you need — >> anybody for any of that. >> No, I use just — I don't, I don't. >> Pay for free. >> Right.
05:27 But he's very, very nice to me and — >> ask him into submission. >> Maybe. So no. Claude like, so how was your, how was your boneless breast? It was unbelievable. Claude. Thanks. Because any time I kind of like that stuff. >> Very friendly. >> Steve. We've got a Fed meeting this week too. You basically think that's just noise? >> Completely irrelevant.
05:50 I mean, look, if inflation gets worse, they'll raise rates. And inflation gets better, they'll cut rates. And so I don't know why people get so exercised about it. >> It doesn't make much difference to you one way or the other. >> Not really. >> I mean, look —