The Future of Computing is Distributed and Decentralized with Dan Desjardins

9 Sep 2023 · 1 h 24 min

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In short

Podcast Episode Notes: Raoul Pal: The Journeyman - The Future of Computing is Distributed and Decentralized with Dan Desjardins

Episode Overview

  • Host: Raoul Pal
  • Guest: Dan Desjardins, Ph.D., CEO and co-founder of Distributive
  • Date Recorded: August 23, 2023
  • Episode Focus: Exploring the future of distributed computing and its implications for technology, investment, and society.

Key Themes

  1. Exponential Age
  2. The rapid pace of technological change signifies the entry into the "Exponential Age," where significant advancements across multiple tech fronts converge.
  3. The discussion emphasizes how opportunities arise amid this rapid evolution.
  1. Distributed Computing
  2. Desjardins highlights the inefficiencies in current computing practices, especially in research environments, where idle computer resources could be utilized more effectively.
  3. The concept of using distributed computing to access vast amounts of processing power is explored, addressing accessibility and cost issues.
  1. Background of Dan Desjardins
  2. Mixed expertise in physics and military aviation, with a focus on research and innovation.
  3. Frustration with traditional computing led to the idea of a distributed computing platform.
  1. The Idea Behind Distributive
  2. Distributive allows devices (like laptops, phones, and even refrigerators) to contribute their computing power collectively to form a more efficient and cost-effective supercomputer.
  3. The system is designed to be user-friendly, enabling easier access to computing resources without complex configurations.

Key Concepts Discussed

  1. Importance of Computing Power
  2. Current trends indicate that the demand for compute power is rising, especially in AI applications.
  3. Traditional cloud providers are becoming expensive, and many companies are seeking cost-effective alternatives.
  1. Accessibility and Economics
  2. The cost of using cloud services can consume a significant portion of a company’s budget, with many startups spending heavily on cloud computing.
  3. Desjardins claims that Distributive's platform can reduce costs by up to 92% compared to conventional cloud services.
  1. Use Cases for Distributive
  2. Real-world applications include machine vision in manufacturing and forest fire detection in Brazil, showcasing how distributed computing can save costs and improve efficiency.
  3. Academic institutions can deploy the technology for free, promoting research without financial barriers.
  1. Federated Learning
  2. Hospitals can maintain patient data privacy while still benefiting from shared computing resources through federated learning.
  3. This method allows hospitals to analyze data without compromising sensitive information.
  1. Potential Dangers and Ethical Considerations
  2. The episode discusses the risks associated with AI and distributed computing, including privacy concerns and the potential for misuse.
  3. The concept of ethical AI development and the responsibilities of developers in ensuring safety and security in distributed networks.

Future Implications

  • Decentralized AI Models: Each locality could develop its own AI, tailored to specific needs (e.g., optimizing city services, managing healthcare).
  • Economic Models: The discussion suggests a shift toward more participatory and decentralized economic models, where individuals can monetize their idle computing resources.
  • Global Participation: The vision includes enabling individuals from various economic backgrounds to participate in the digital economy, thus reducing inequality.

Conclusion

  • The conversation emphasizes the potential of distributed computing to revolutionize technology and economic systems.
  • Both Raoul Pal and Dan Desjardins express excitement about the future and the opportunities that arise from embracing these technological advancements responsibly.

Key Takeaways

  • Distributed computing can democratize access to technology and innovation.
  • Ethical considerations and privacy are paramount as we advance toward a decentralized future.
  • The dynamics of compute power will shift as more devices contribute to a collective processing effort.

Final Thoughts The episode underscores the importance of adapting to rapid technological changes and the need for frameworks that allow individuals and communities to participate actively in the digital landscape.

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Transcript

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0:02Hey, everyone. If you like this podcast, go behind the paywall to get privilege access to the smartest minds in finance. Visit realvision.com slash rvpod and use the promo code podcast10 to get 10 % off our essential membership for the first year. Join the Real Vision community and learn how to become a better investor. And now to today's episode of Rao Pal Real Vision.

0:32so i can't wait for this conversation dan desirazdean is somebody i've known for quite a long time and magically through a connection in little cayman i meet a true disruptor and somebody who's literally changing the world in front of our eyes and it's in a layer that we don't think about we take computing power for granted but we don't think how it can be used who owns it and how it can be leveraged in different ways and i'm going to go through this story with dan and i think i'm guessing yet again he's going to blow our minds when change comes opportunity abounds. We're about to enter a period of the fastest pace of technological change in all human history, something we refer to as the exponential age.

1:29And Real Vision is going to be your guide to this incredible future.

1:38Dan, fantastic to see you on Real Vision finally. thank you very much for having me uh you know amazingly you and i got introduced by a friend of ours a mutual friend who lives in little cayman and he's like you need to meet this guy dan he's doing some really cool shit we've been talking for i don't know three years or so maybe even longer maybe four years as you've been building this out and i've been wanting to get you on real vision and now now is the time because i think it's super fascinating i've had this big this big thesis around what I call the exponential age, which is the coming together of all of these technologies of which what you're doing, stuff like distributed compute, is a big part of the future of where the world goes.

2:21So before we start into what you're up to, give people your background, where you've come from, what do you do, that kind of stuff, and how you got here. And really quickly, I was reminiscing on that as well when we stepped into your office and grand and he gave me the grand tour. That was what, three years ago. So it's been really interesting to have these. Maybe even longer, maybe four years. Maybe four years, yeah. So a lot of water to the bridge and it's an absolute pleasure to be here. And maybe summarize some of those, the journey so far. It's been a lot of fun. And Sam, congrats to you and Real Vision and with the exponential age.

2:54This is exciting. Quick background. I have a mixed background in physics and military aviation. And especially on the research side, what elevates me is answering questions and research and making tomorrow happen today and accelerating innovation and whatnot. And compute from that perspective is a means to an end. It's a tool for innovation and making new medicines and space elevators and aircraft and everything. And I always needed more compute for my research. And if you ever, you go into a classroom, you ask students, hey, put your hand up if you've ever used a thousand cores before. Nobody puts their hand up, you know, and that's just a thousand cores.

3:42Imagine saying this, has anyone ever used a million cores? Now, the people on the planet and have used a million cores before, you could probably count on a couple of hands. What is a core, by the way? I'm going to have to ask you many questions. Yeah, no, it's good. So we can go into slang. So when I say core, I'm referring to CPU cores, but of course GPUs, which is at least 20 to 100 times more powerful than the CPU core, will give you even more oomph. But typically your laptop will have about between eight cores, 16, if you've got a good one, or even 32, if you've really dropped a lot of dough.

4:16and a graphics card and a GPU. So typically that's what your typical home user or advanced scientists on the lab will use. So going from eight or 16 to a thousand or a million, this is where you can take a sledgehammer to innovation and really light fires, right? So compute, compute, compute, the name of the game for the era of innovation, especially with AI. So how did you, so give me that journey then. So you're in research and then what happens? How do you get into what you're doing now? Come up with this crazy idea. Talk me through that story. Well, I'll be modest and start by saying that the idea of putting together computers for accelerating research, that's as old as computing itself.

5:03It's an old concept and nobody should be going around saying, oh, distributed computing is going to save the world. It's been around forever. if we even harken back to the days of city at home, they're just more clever approaches that can take advantage of technologies. It's a better way of stitching things together. But we'll get back to that. Me personally, it's a rather hopefully relatable story to people who've been doing some modeling. But I was sitting there in my lab, on my laptop, trying to make my code run. And it would take days to run through some of these simulations. And whether it's physics simulations or financial modeling or risk modeling or what have you, it's the same thing.

5:41It's running a bunch of compute scenarios. It's crunching numbers and data, and it spits out an answer eventually. And so it would take days on my typical computer. Meanwhile, there were a whole bunch of computers in the lab next to me doing absolutely nothing. And the dream was, okay, we could tap into this. And of course you could. There was some software that existed at the time, but it was an absolute nightmare to try to configure. and keep in mind so I spent eight years learning physics and then math and then to code the math and then by the time I was able to produce results for my own answer about physics questions now I had to learn how to administer clusters or learn the cloud or to manage a data center I was like you know what that that I spent enough time becoming an expert I'm not going to now learn how to administer data centers and so what I did was I manually walked around each computer and I you do compute one to 200, you do 200 to one to 400.

6:40So I started manually running around to these computers and making them do this stuff, which is surprisingly more efficient than spending the weeks to months to get up to speed on grid toolboxes and other things. So that was my personal frustration. And I can certainly speak on behalf of all of my co-researchers, Everyone, chemists, biologists, mathematicians, same with them. They spend so long getting good at asking good questions and attacking ways of coming up with the answers. They don't have time to learn all of the new fangled tools that have somehow inserted themselves between researchers and developers and the hardware that spits out the results.

7:24We've heard about DevOps and FinOps and no code as a service or low code, no code. it. Like there's all this stuff, this whole cottage industry that is somehow interjected, you know, between people asking questions and the hardware that produces the answers. And that's what we wanted to get rid of, or that's what I wanted to get rid of, is I wanted to make my life easier as a researcher. So that's how we got into it. I was tapped on the shoulder at a barbecue party by some friends. This is the rise of Bitcoin and crypto. Like, hey, cloud's getting big. Crypto's getting big. Why don't we put all this together, to do this cryptocurrency incentivize distributed to cloud kind of thing and that's how it started but six years later we've succeeded in building a compute platform that's no different from typical concepts but that uniquely uses web technology so we can walk into any hotel lobby or any audience full of people and say, pull on your phones, for example, open a browser tab, type in this little code, dcp.work, and press start, and it instantaneously out of the compute cluster.

8:36So it's secure and ubiquitous. It's fast. It works on every device. So that's sort of like the dream coming true many years later, how to make spreading questions, computational problems resulting in these questions across devices everywhere. by just using a browser. Browsers, we have a screen saver version now, so let's say it's home style. Really? Docker, it doesn't matter. We've done it on fridges, phones, laptops, everything else. But all this to say, it's not about, like I don't want to be like a compute problem. I think everyone knows that compute is sort of the core of what makes innovation happen nowadays and it's underpinning all of AI and everything else.

9:16But I think the next question is, how do you make it more accessible, not just from a cost perspective, and I'm sure you're all over the fact that people are getting sticker shock. Sales volumes with commercial cloud providers are starting to decrease as people are becoming a bit more cost conscious, right? The promise of cloud is... Because right now, most people solve this by paying Amazon or Azure for compute in the cloud, I guess. Yes, absolutely. Some high up friends at Amazon have said that they're feeling the pinch of chip shortages as much as everyone else is right now. So a lot of the compute is being routed towards the bigger customers, and it's leaving some of the smaller ones with less.

10:01Prices are, of course, going up. And in this sort of quasi-recession, everyone's looking to reduce costs. I don't think there's a CIO on the planet who doesn't have written into their employment agreements that they have a partial mandate to decrease costs where they can. And the cloud bill can be up to or sometimes exceed 50 % of a company's technology budget nowadays. And I believe almost 80 % of the funds that VCs are investing in these AI startups are basically flowing directly through to the cloud services providers. So when you think about that, only 20 % of VC money is being deployed to building new IP and hiring personnel.

10:4580 % is going to pay Azure, AWS, and what have you. We're building some AI tools, a real vision, and the cost is the compute. Everything else is relatively straightforward. It's the bloody compute, and you're competing with these giants for the compute. So when it comes to gone. I was just going to say, and that's why there's been a number of many, many companies that are building these compute platforms. And some have been on your show as well. And we have that shared objective of reducing the cost of compute, but also making a new set or evolution of tools that get out of the way of the researchers or the developers or the application developers.

11:26Because that's the other thing. It's been engineered to be so complex nowadays. There's like 50 cycles of this and waterfall that. Again, as a business, I just wanted people to get out of the way. I just wanted to express my workload, get my results and move on. Now when you go to any of these cloud providers, there's like 70 pages of instance types. And then different config files that if you screw up the wrong thing, you're now compromised and get locked out. Or you have what they call the$50 ,000 oopsies. you wake up on Monday morning and forgot something on a Friday afternoon. So all of this stuff makes it difficult, I think.

12:03It puts an upper limit on the base of innovation. So talk me through what you've built and how it's being used and what it does for costs. So from a cost perspective, we've done several deployments in commercial and non-commercial locations. So manufacturers, hospitals, airports on the commercial side. And it's about 8 % of the cost of cloud. For example, a machine vision, typical run-of-the-mill machine vision. Sorry, how many 8 % or 80 %? 8%. 8%. So a 92 % reduction in the cost of using, for example, a Microsoft custom vision or AWS recognition solution, which is a machine vision platform. you can spend a formidable amount of money in a hurry when running these intelligent machine vision analytics platforms on a near continuous basis.

12:58But if you harness all of the computers, laptops, servers that exist at that airport, it's what we're doing right now in a couple of locations, it's 92 % cheaper. And data doesn't leave the building. We're also deployed at a couple of universities. And this, we do it at no cost. It's free to academic institution, true to our initial mandate, which is to accelerate innovation. And we just launched last week a project called The Hunt for the Legendre Pair of length 117. And for the non-mathematicians, basically Legendre Pairs are kind of like prime numbers in the sense that they satisfy certain rules.

13:37Prime numbers, they're divisible by itself in one. Legendre Pairs have a whole bunch more rules. And they're very difficult to find. but when you find them, they're extremely useful in cryptography and for self-correcting code and some other things. So these special numbers have special uses that are very useful, and finding them would overcome some conjectures in one sense, and it has some practical use cases elsewhere. But you would have to search 15 septillion numbers. I've never used that scientific prefix or whatever in normal conversation. It's the first time. it would take on one laptop something like 200 million years to search that space and find these numbers.

14:21So to pay the cloud to do this is impossible, but if you have several million cores from all of the idle computers, fridges, phones around the planet, our university campuses, suddenly it unlocks the ability to do some of this discovery without breaking the bank. and so again it's free so in this case we have something like 15 000 cores worth of academic compute alone from campuses and we've recently been working with the world community grid so to bring up steady at home they're powered by point so that's a very old technology it basically requests that everyone runs vms on the computers and we're embedding our work inside of that technology and slowly we're improving things, it gives access to up to 500 ,000 machines on the planet.

15:10So that's more protruding power than all of Canada put together, for example, the national research infrastructure. So there's a lot of power in these networks of people who are motivated, incentivized for science or economically or both, and making it easy to tap into that power is one aspect, making it secure is the other big one. So there's a reason why people aren't executing Python, random Python from all over the web or all over the world, all their computers, or random C code. You'd be crazy. That's how you get completely owned. But there is intuitive programming languages that people execute.

15:48In fact, 5 billion people execute every day on their computer. That's JavaScript. Every time you surf the web, every time you do a Google search and you click on a link, you're fetching code from somewhere on the planet and you're executing it on your computer in order to view the page and fill in forms and everything else. Every time you log into Netflix or your bank or you surf the web, you're executing code from somewhere else on your computer. So that type of security profile is only possible because Google, Microsoft, and Amazon have billions of dollars into making the web secure, fast, and ubiquitous.

16:23I mean, name me a device that doesn't run the web stack, right? And so building a compute platform out of this is the new thing that we think we've done. Again, the concept of distributed computing is as old as computing itself. But building it out of the most successful networking technology that everyone has at their fingertips already just makes a whole bunch of sense. And now we can talk about Web3. Hey, everyone. We're going to take a quick pause and hear a word from our partners. We'll be right back. Your favorite neighborhood spot grows with Square. Indeed, my favorite neighborhood spot has quickly become Todd Snyder in Williamsburg.

17:00Todd Snyder is one of my favorite menswear shops and has supplied me with all the clothes I have needed this quite hot summer. Every business has different goals, but Square is the business platform that supports them all. From opening a new location, selling something new, or just expanding their reach. Indeed, I've seen it with Todd Snyder. In Square, also, you can get real-time insights, so don't wait for end-of-day reports. Go to square.com forward slash go forward slash realvision to learn more about how your business can grow with Square. That's S-Q-U-A-R-E dot com slash G-O slash R-E-A-L-B-I-S-I-O-N.

17:50well come on to use cases i just want to let people understand a bit more so now let's say you're university somebody needs a bunch of compute power and there's thousands of computers at the university in various formats as you said it could be fridge you know it could be internet of things compute it could be any compute really and you can tap into that so firstly, what's the process of tapping into that compute? And secondly, what's the motivation for me for allowing you to use my compute and setting it up? So talk me through the two sides of that equation. So I'll talk through some fun different scenarios.

18:30So there's three parts, generally speaking, in any compute technology. One, it's the mouth or where the jobs come in. So some sort of set of APIs, we call that DCP client. Then you have a scheduler that allocates workload. And then you have the worker agents, the workers that do the actual lumber crunching. So to answer your question, if I'm a student and I want to set up a compute cluster really quickly in a computer lab, we've packaged the workers in a variety of different ways that can suit enterprise needs or student needs on a budget. a student can walk up to 10 computers and open a chrome tab and literally type dcp.work slash the name of their cluster so i have one called dan so if i type dcp.work slash dan browser tab and i press the i give the password i press start that computer is now in the dan computer just like that so if i open this and it takes two seconds to open a browser tab so i can do this on 20 computers and those 20 computers if each have eight cores well voila I have a couple hundred cores and two dozen GPUs just by entering a website and a password like that and then I can close all the tabs and walk away so it's kind of like a pop-up computer cluster that costs nothing these are just all computers are sitting there and then I would use the APIs to push my job at that that Dan compute group and if I want to figure out which computers to allocated to and relative load and all of that.

20:05That's it. But any modern distributed computing system should be expected to do that. And so ours is no different. All the user has to do is say, this is my data I want to process. This is the code I want executed against that data. Go away and come back with my results. And that's it. There's no environment configuration. There's no Docker container. There's no image creation. There's no port forwarding. there's the firewall setting, there's none of that. It's just code data. Okay, so now that's the student with 20 computers around him in a lab, and he can go around and do each one. Now let's talk about a big project.

20:46So then we can go up a step. Okay, so that's like a really quick pop-up compute group. If we go one step up to the IT level within the university and they want to get serious, they can using their existing network installer methodologies they can deploy screensaver so we've taken the engine out of the browser that does the compute and we've shoved it into a screensaver and that screensaver basically can be deployed as in any the same way you deploy microsoft word to 2 000 computers simultaneously so if the screensaver is on it means the computer is not being used so it can be used for compute that's it and so this everyone here should be Well, everyone here should be like, I've seen this movie before, 40 years ago or whatever, SETI at Home.

21:30And that's exactly what we did. That was a very popular model that worked. So we just put the same modern technology into the old concept of getting into a screensaver. And so what are you left with? You're left with 2 ,000 computers that when no one's using them, which is always going to be between 5 and 8 in the morning, sometimes throughout the day, that's a lot of compute. And if we say that one virtual CPU core on the cloud is worth about$440 a year, and you have eight vCPUs per computer, and you have 2 ,000 computers, and I'm not even talking about graphics cards and GPUs, it's just the cores.

22:08If you do eight times 2 ,000 times 440, that's what it would cost the research facility community to buy that same computer power from the cloud on demand. We're talking hundreds of thousands of dollars, and that's not even factoring in GPUs or anything else. And yet it's available free right now. And so now, and that's just one university campus with 2 ,000 computers, 2 ,000 that's probably on the lower end. Your last question was, how do I get involved and make some money? We've also created or we allow anybody in the world to participate in the local compute network. It's the exact same thing as City at Home or World Community Grids.

22:47Same concept, but just built on secure web technology, the same technology that's used for online banking, everything else that underpins the web. Same idea. Anybody can participate and get paid. And what they get paid in is cash. We've reserved or we're waiting for market demand to add crypto and other settlement layers. But right now we've started with the bread and butter approach where people are doing real compute, they want to be paid real dollars. And if they choose to be paid in something else in the future, we're certainly happy to include those layers. But when you look at the market demand for compute that's only exploding and chip shortages and everything else, there's an argument to be able to sell computing power for about$100 per vCPU year.

23:34And if you have eight in your laptop and a GPU and you run it half of the time, these devices should be able to pay for themselves within two to three years or less of their lifetime. And this is the Uber approach, right? It's basically the Uber of compute. Absolutely. Except public jobs have to be non-sensitive. So your typical hospital and manufacturing airport where we're also deploying these computing networks don't want their jobs on open public networks. Correct. And so the ability to cordon off workers into their respected groups gives everybody something. So big, gigantic, million-core networks for science and research and public good jobs, forced fire detection, which is very apropos right nowadays.

24:23But then also these small clusters for allowing hospitals to not break the bank as they explore AI tools. And is having distributed compute safer because no computer gets to see the full workings? So if you hack one computer, you're only going to see one set of workings. You're not going to see the whole genome model you're working on or whatever. I would say it depends on the workload and it depends on the resources of the actor on the other side. If we're talking about a nation state with enough resources, it's never safe to assume that something's 100 % safe, right? But some problems, some workloads require all of the data, the entire training set to be in the same runtime environment.

25:10So in these cases that are not data parallel, someone who cracks one of them will get access to almost the totality. So again, it depends on the workload and it depends on the resources available to the other actor. And so the approach we've taken and until full homomorphic encryption becomes actually available and affordable and doesn't eat sort of like a hundred to a thousand times overhead, the easiest approach is just to order off trusted computers for trusted workloads. So something like the Department of Defense, they'll just run on their internal networks. It never leaves the building. It's no problem.

25:50But for others that have less need for secretory, let's say it's us training our AI model, you know, what commercial value is that to somebody else? Relatively limited. So we can use any distributed network. Exactly. And you have all kinds of national statistics agencies. I'm thinking, for example, Canada, National Resources Canada. They want to monitor the presence of forest fires and how they're spreading and recession of tree lines or whatnot. So those data sets are already public, public tax dollars, so they're definitely public. And so running gigantic workloads like dental public networks, it makes it great, makes all kinds of sense.

26:32Smart cities applications that are for the betterment of your municipality, those should be public jobs because it's benefiting the cities. Unless there's sensitive jobs, then yes, then you do those on secured computers. And some of these huge models, the global climate change models that are distributed in nature so different people can work on them in different universities or whatever, makes total sense, I guess. Absolutely. Why enrich Amazon? They make enough money. They do. They certainly do. So while we're talking about smart cities and AI, I was recently listening to a panel. There's cool investors and they're asking, what comes after AI?

27:13Let's put on our futurist ads and let's see what comes next. And everyone unanimously said, more AI. So it was perhaps not a very interesting answer. But I'd like to tackle with that. You've seen a lot of folks, a lot of their takes on where AI is going. I want to make the case for we're going to see fragmented or personalized, customized, decentralized AI. I think that right now all the AI models are being trained and developed and controlled by massive organizations right now on the planet. But we can see a need for every municipality or every hospital or every locale to have its own AI that's going to take care of water purification or optimizing bus routes or the train schedules.

27:59or maybe regional optimizations for surgeries across hospitals for sort of local efficiencies, but also sharing those efficiencies regionally. And so you could almost see every hospital, every bus station, every city hall, having their own large language models, trains on their bylaws or on their local standing operating procedures and so on and so forth. Each of those models, almost like a village millions of years ago, would take care of a fire, right? You'd be the caretaker of a fire locally. Well, we're going to become caretakers of our local AI models that are going to make sure that systems are running efficiently.

28:37Where did I hear this conversation? I've gone through this conversation with somebody talking about exactly this. I think it makes sense, right? We've seen this wave in computing as well. Everything was in a room and then all of a sudden it's on your desk and now it's in a room, but then it's on your desk and now it's back in the cloud in a room. And now they're calling it Edge where it's coming back again and back and forth and so on and so forth. Same with AI. It's big, huge models that are - It's centralized to decentralized to centralized to decentralized, unbundling, bundling. We're seeing it endlessly, right?

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29:07Endlessly. And so AI is going to go through that phase. And so a lot of people are putting a lot of work into the algorithms and making them more efficient and able to run on smaller and smaller devices at the edge for inferencing. But we also want to build a brain that we're having constantly learned from data near the sensors that are the ones we interact with or where we're generating data like our individual municipalities. And so when you're going to have these centralized AI models that are basically cooperating with society, with part of society built into it, you're going to need compute.

29:43And I'm not pitching or standing up to distribute. This is just going to be true regardless of the compute platform that's employed. Here's a problem that cloud is not yet solved. If we're going to run these cooperative AI models sort of built into society, sort of the helper models all over the place, they're going to run on compute and data at these different edges. And up until now, cloud is one owner of its industry. And it's scheduling workloads based on hardware that it owns and controls. So it's basically performance-based scheduling. what happens when the owners of the infrastructure that come together, the different computers and the different traffic lights and the different servers and the IOMT device that come together to create that data and compute fabric to power the site are not owned by the same owner.

30:39Now you have heterogeneous ownership and not just heterogeneous hardware that you have to overcome. So this becomes interesting. And I was on a panel with Erickson and they said the biggest problem that's going to have to be overcome in order to facilitate true decentralized edge computing is going to be remuneration. which takes me to sort of like a final interesting thought process. When you get your electrical bill, Raoul, at the end of the month, it doesn't say that you bought four toaster hours and six light bulb minutes and 17 fridge days. It says you consumed X kilowatts of power. This is the electrical bill, and that's done.

31:22It doesn't matter what appliance you are using. There's a value that's been attributed to the electrical service that you consume. Well, compute. We're still stuck in that yesteryear version where we're charging people based on the availability of a particular instance type. An instance is just the name of the hardware it's running on. That's what I meant beginning with the 70 pages of these instances. What if instead it's just, look, you have a problem and you launch this workload and your results are worth this. The same way that your electrical bill is just pared down. Then we're going to have to do that, Neil, in order to deal with heterogeneous ownership and heterogeneous platforms.

32:01And by here, I'll define heterogeneous. It just means different. So you'll have phones, you'll have fridges, you'll have computers, servers, but you'll also have it. It's owned by the library, club, by residents, local households who are part of that municipality, and they can get an offset on their electrical bills or whatever if they contribute their idle compute capacity. So measurement without being able to be spoofed or fooled is critical. security the inability for a malicious workload to compromise any of those devices is paramount and simplifying access to these making it easy is the final pillar those are the three pillars I think that not us but any compute platform that claims it will put a dent in edge computing and AI will have to overcome in order to make that future a reality and get us closer to the simulation for example hey everyone we're going to take another quick break and hear a word from our partners and then we'll be right back okay there's a whole bunch of stuff there firstly when you talk about separating electricity hours by toaster hours and bridge hours and whatever aircon hours actually that whole process could be run by ai once you get to that granular level because if every internet of things is giving you that information then your own household ai can control better than your Nest can, which is a very mild version of this, that you can become hyper lean and effective and you can exactly see what's causing your problems.

33:36And do you need to change that AC unit or whatever it is? You know, that in itself is interesting. When we're talking about localized AI, you can have household level AI. You know, already we're very close to having LLMs on our phone that don't need to run on the internet. So that becomes personalized AI, household AI, municipal AI, online group AI. So Real Vision is developing AI and AI, and that's for the community of Real Vision. So it's a community AI built for the purposes of that community. It becomes super interesting, and it links everything. And here's my issue with the singularity in all of this, is we don't yet understand, and I don't think we ever will, how large language models learn.

34:24We don't know what they know, and we don't know how smart they are. Because we're trying to speak a foreign language to something. And if you go and speak to somebody in Hindi right now, you're not going to assess whether they're smart or not. You're just trying to somehow, in a broken language, you can speak this much to them. And if I listen to Sam Altman speak, or listen to the guy who runs Anthropic, vehicle, listen to MAD from Stability, nobody's got a fucking clue how this stuff works. And what is interesting to me is if you do link everything, well, AI can spread everywhere. If it has some ability to think like a virus, which it may well do, we don't know, then it has an ability to use all compute everywhere, whenever it wants, however it wants, and control everything around our environment.

35:17That's kind of an unintended consequence that I feel thrown there. While you're... One cannot avoid thinking about Terminator here and Skynet and everything else, right?

35:30For the next... For the foreseeable immediate future, we think, or at least we think here, that LLMs are excellent stochastic parrots. They happen to be able to spit out things that are... But you don't know that. Because when you watch how it won DeepMind Go, right? DeepMind, that was, I don't know if you watched the documentary, but it was, we've all read the story. We all know it. You watch it. It was the first four games or whatever, three games. It played ordinary human games. It then lost a game and never played a human game ever again. And the commentators were like, what the fuck is it doing?

36:08This is stupid. This is a dumb move. And it never, ever lost again in a way that we don't understand. So I don't think it's stochastic parroting. I think that's a human protective thing that we suggest because then we can understand it. Like we use narrative and mimetics to understand the world around us. We kind of say that. It's certainly an important conversation to continuously have because the minute we relax our skepticism or our caution around these things, we'll begin to make mistakes. It's the same with CRISPR gene editing in a way. The parallels there are for the atomic bomb. I mean, with the barb and anheimer that came out just recently, right?

36:49And with great power, we have to be very, very careful. And we obviously are with some dark humor and cynicism here in the office. We talked about maybe accidentally unleashing, something like that. Yeah, we would become in serious trouble if we start too early letting AI launch more AI jobs and start doing stuff. um so i think it's it's always important to have guardrails for sure um we have made sure that there's a big red button of course everyone does um i don't yeah but you might be able to but the llms can't because if if it has infected your fridge and it can if i can store an llm on my phone i can store it on my fridge and so in which case the llm can be anywhere and not exactly like a virus it's just something we're not there yet obviously but it's just something i think there is like yeah this is very difficult to stop if it goes certainly too far ex machina if you've seen the movie it was such an excellent movie and the biggest question that wasn't asked explicit was are these um these ai um humanoids are they simulating emotion with really high fidelity or are they experiencing it?

38:09And it almost becomes a metaphysical question. Like, does it matter? That's my point is I was having this discussion about, you know, do they exhibit emotion? It doesn't matter. Just because how we see the world is human emotion, it doesn't mean different things can live. I mean, because if we know the complexity of a bee colony or a bacteria colony, these are super organisms. they have a collective intelligence of which we don't understand yet we entomorpize everything because we can only think of it in our world and it's fascinating to watch these bee colonies or fungi colonies the ones that actually take over their host's brains by injecting spores and whatnot it's absolutely fascinating and terrifying let's hope AI doesn't start doing that, then we're really in trouble right yeah well you know is there a flip you know are we biological computers i mean that's the other question that biologists and physicists are trying to answer because if we are biological computers then there's no reason they couldn't and you know it's always fun to ask the reverse question you know like um we keep saying that humankind has domesticated wheat but someone actually flipped that that conversation around wheat domesticated us like dogs my dogs domesticated dogs domesticated humans because they now have their food given to them yeah same with wheat wheat is now an endless it's survived that's the entire job is to survive making sure it's healthy it's watered it's uh you know the lands are irrigated it's in these beautiful parts of fertile land and so on and so forth so i guess at the end of the day it's important to understand that we're not above or below um all the other participants and on this planet um we have to be caretakers and be careful.

40:03And as long as we're progressing in a way that people are benefiting, all people are benefiting, all people and non-people, I guess, then things are sustainable. Why are we inventing AI? Why is this AI craze in the first place? Do we need it? We've been C2C, we've done fine, look, over the last several thousands of years, millions of years. Well, AI is, again, like compute, it's a means to an end. AI in of itself is useless. What are the use cases that are interesting with AI. It's all about gaining some efficiencies here and there, better scheduling of resources. If you can make sure that the right patch of cucumbers...

40:40Also, it stops knowledge being a scarce asset. Yeah. What do you mean by that? Yeah. So your brain, what you know and what you've learned, is a scarce asset. It's not easily repeatable. but we're seeing that ai can scale knowledge in a way that no single human can now we're not at agi yet but we're at levels of knowledge which are frankly making a doctor an accountant a lawyer and a whole bunch of professions questioning what is their economic value versus an ai right a doctor charges a thousand bucks the lawyer charges a thousand bucks an hour because he's a senior partner really how much is that worth versus the ai right it's very interesting and coming from a background that gets digitized goes to zero in cost which you know because that's what you're doing yeah well i i used to fly for the military as a military pilot before and and of course it's it's uh it's hit us too like we're asking the same questions you know ai can land a plane far more accurately.

41:51In fact, I think when they were landing drones on the US aircraft carriers, they had to actually build in some stochasticity to its actual touchdown point, because it was so perfectly landing in the same place every single time that it was starting to damage. The tarmac that it was landing on, this was like pinpoint precision. So they actually had to build in some variability to its landing spot. So absolutely. And a lot of people are worried about losing jobs. It's not that we're going to lose jobs. We're going to evolve new jobs, more creative ones, more guidance. There'll be a transition and whatnot.

42:27And I don't think it's going to happen too, too quickly. I mean, I think there's a scare now because there's been a leap, obviously, with ChatGPT and other similar technologies. But there still will be a reasonable transition between our current way we do things because it comes down to trust. And as you said earlier, we don't know exactly what's going on at the end of the day, deep down within these models. So here's a question about that and distributed networks is there are two battles going on, which is the same battle we talked about earlier, that is centralized AI. Let's call it open AI.

43:00Let's call it Google. Let's call it Anthropic. And there's a few others. And China has their own and a few other people. And then there's the open source AI models. How the hell do you stop it? why can't it it's like you can't stop atomic um energy development or nuclear weapon development really it's somewhat easy to control the uranium but you know we've seen it with crisper gene editing any of this stuff it just goes to a different country it's the prisoner's dilemma if you don't do it someone else will and you're kind of stuck and um and therefore you must it is I mean entire doctrines are being rewritten in fact are already rewritten how if your enemy or any naval or air force fleet that harnesses AI will have air superiority it's imperative right to develop these things because if you don't your enemy will so how do you stop that that's really hard I mean I guess you you cut off I mean you can only go after algorithms data and compute, if you want to stop it, and communications.

44:09You've distributed compute. The algorithms are distributed because they're open source. I mean, would you stop electricity? Even that's distributing now, right? Now we've got solar panels and we're moving away from centralized grids to decentralized grids.

44:31It's almost depressing to ask the question, Do we, the human species, have we matured? Have we learned anything since the detonation of several hundreds of nuclear bombs and the devastating effect they've had? Have we learned anything when we're creating potent nerve agents, bioweapons? Have we learned anything about doing anti-sublight kill kinetic weapons where we're creating shrapnel orbits at 7 kilometers per second that will basically age us here? I'm sure you're aware of this. If you look at low Earth orbit, it's littered with dead debris and satellites. And one of the ways you knock out your opponents, I've gone in this sort of military slide here, but if you want to knock out communications, take out the satellites and take out the undersea cables.

45:18Cutting an undersea cable isn't really going to threaten our civilization, at least not in the long term. But if you start taking out satellites with kinetic weapons, creating a gang like these, gigantic, irreparable, trapping all clouds that travel at speeds that will just go right through you and you'd be pulverized. So we're at risk of creating a very physical jail around the planet if we don't let cooler heads prevail. So the question is, can cooler heads prevail? Or is it the prisoner's dilemma? I mean, it's, it's, it, you know, it's also interesting to me at the center of all of this, of all of this conversation we're having is Elon Musk.

46:08Because not only has he put up more satellites than all the other governments combined, and he's done it as a single person, but he's created an entire network communication, distributed network communication, which is Starlink. Yeah. Um, but then I look at the cars and they are distributed compute. and they are using AI to drive the robots because that's what they are in the end. They're computers. Oh, yeah. Everything is a computer. I mean, this AirPod case, I can find it. I can locate it. There's chips in it. It's broadcasting. It's position, obviously. So it's this phone, this laptop, this smart TV, that laptop.

46:52Everything is basically a computer with chips and a sensor, right? And so Elon Musk, when you take a step back and you look at all the companies from solar power, battery storage, obviously launch system, satellite network, and now communications platform, I always wondered why he bought Twitter. Trending the AI. Right. Well, there's trend of the AI, but the optimist in me thought when I was looking back and say, okay, you know, I had all the boring company, right? I thought he was setting up, might still be, I have no idea. I'm just speculating. Here's my curious wannabe astronomy. I always thought he was building his own space program, but compartmentalized.

47:34He is. He is. No question. But if you can deploy these subsalene tunnel diggers to the moon, now you don't have to carry all the materials to build these bases. You can just dig them out. And also, if you want a base on Mars, it has to be underground. That's it. So he's got all the things put together. And maybe at the last second, he noticed, you know what's missing? the imagination and the will of the public. So if you can influence the media and get people to dream again, as Elon Musk started, and I hope he still is, as an optimistic dreamer influenced by Jules Verne and all the explorers. And he built all the technology and the last thing that was missing was maybe the will of the people, the boldness, the desire to dream big.

48:22Now it becomes almost social commentary. I feel like the human race has been preoccupied with less than exciting topics, I think, these days. And in fact, probably, that are damaging to our collective well-being. And nobody's talking about, or few people, relatively speaking, are talking about nuclear-powered space travel. And what's below the surface of Mars? Or how much water is actually below the poles on the moon? or helium-3, if you mine that out of regular dust, you can create anutronic fusion fuel, which like a teaspoon of it would power a city for weeks. No one talks about this. We're more busy contemplating politics and whatnot.

49:07So I was sort of hoping that Elon Musk was going after the last piece of his entire space program, his disassembled space program, to actually influence the people, nudged him towards being curious. He's just going to do it anyway. now again this is not just elon must is a good person or a bad person or he he does everything to everybody pisses everybody off and inspires everybody at the same time and everyone thinks he's a crook as well as a genius so that aside i think what he did was say okay i want to go to mars the mission statement and i want to build a colony there so go back to first principles what's the hardest thing well we know we could probably get there the technology was there he was paying for it no government could afford to do it so then if you break it down to the component parts and get each one of those businesses to be cash flow positive so the car company let's say let's say the ai training which is twitter let's say um obviously spacex all of this they all throw cash and before you know it they're all building this end goal and then it just kind of happens because everything is in place and that's what that's what i you know even when i look at the optimus robot is like well you can't send humans to mars to start with and if you're going to have to do stuff you'll do it with robots how do you train robots that are acceptable to humans that don't freak you out is train it on humanity so you can your political views will match with your robots or whatever it is, which is Twitter, which is why he doesn't give a shit about freedom of speech.

50:44He just wants an unbiased model so he can train the robots to be like you and I. Once upon a time, I'm sure he was dreaming of space travel. I'm sure he still does, but it's important not to become too cynical, I think, right? Otherwise, why are we trying to go to Mars in the first place. This is another question. Like, why? Why go? Are you just going to set up a copy of ourselves over there just to do more of the same? Because in that case, it's not AI. That's the virus. We're the virus, right? Well, maybe that's true, right? Yeah. I mean, I don't know. But the other question I want to throw at you in all of this is, okay, we've kind of looked at steady state of compute, saying, okay, we're distributing.

51:29We can scale it. AI has come. It's a game changer. requires more compute everything's just going to be more compute more compute that's endless talk me through quantum quantum is going to make a lot of conventional compute obsolete um so it's a guessing game is the one that's going to be ready and i was having this conversation just recently conventional compute computers have come about decades ago but it's only in the last 10 years 20 years where you're starting you're starting to see like coding really built deliberately built into even high school curriculum, right? So from the moment of invention, it took decades.

52:09Like of course it was used immediately, used to build movement and capital trajectories, but by the time it's actually fully mainstream, like baked into our educational curriculum, everything else, it took several decades. As a physicist who's taken a quantum mechanics class or two, there are still a lot of hurdles that we're still working on overcoming to make the first quantum computers more than just cool, but viable for big problems. And I know there's a lot of big efforts that you, again, can count on two hands that are doing some pretty amazing stuff right now. You've seen the wormhole on a chip video that came out by other magazines is formidable.

52:49But there's still a long ways to go before that technology is mature enough to be deployed on many desks, let alone everyone's desk. and it's going to take even longer before they're known as part of the curriculum in school. Again, as a physicist, I was trying to look around. How do I program a quantum computer? How do I write a quantum algorithm? The very first textbooks on this are just starting. Everybody should know right now what a for loop is or anyone who's done a comp sci or a science degree or anything touching the sciences. Everyone knows what a for loop is and how to write one. But if you ask someone, hey, how do you write the quantum version of that?

53:29Or is there a quantum version of that? Like, as someone who's written a lot of code myself and who's a physicist, I have no clue how to think about writing. What does it do to everything when you've got kind of, so we talked about knowledge being scalable. We're talking about what you're doing is making compute scalable. But now we've got, with quantum, and we're not there yet. So let's talk 30 years in the future, infinite compute and AI. That feels like that is the singularity of all things because there's no constraints on anything that we understand today. So in two words, I'm going to say more triangles.

54:14And that's an inside joke for people doing finite element analysis. when you design a model whether it's a car or an airplane and you want to see the impact forces and how it distorts the metals and breaks things you break that model down into tiny little triangles 3D versions of triangles and then you apply the boundary conditions and see how forces distribute everything else but the more you turn up the fidelity so the smaller you make those triangles the more triangles you have the more equations and the bigger the matrices that he computed it upon in order to get your answers. So basically, if you give someone, if you double the amount of compute that they have access to, they're going to, more triangles, they're going to turn up the resolution, they're going to push the batteries, they're going to come up with a new AI algorithm.

55:03Instead of doing like 10 billion tokens, they'll go to a trillion tokens. If you make more clean pasture available to rabbits, they're not going to just be sustainable and responsible, they're just going to multiply and then they'll eat all that grass. So to me, the cynicism to me thinks that if you give someone infinite resources, you can find a way to use them. Why not? I mean, that's how innovation happens. We're constantly pushing the barriers. If we had a space drive that could go at 90 % the sphere of light, we're going to look for a way to go at 97 % the sphere of light so we can go see more parts of the galaxy.

55:45It's just the way we are, I guess. So what does it mean? I think we're going to have someone in the future called Raul2 and Dan2 will be having exactly the same conversation about the next thing after quantum computing, talking about what happens when we truly have infinite computing, find more ways to use it. Okay, final question, something you and I have talked about over the years as well is as we're getting towards distributed compute and payment systems, I'm thinking at simplicity level for people to understand, And it is the Uber of computing, right? So I can get paid by having excess capacity, like if I wanted to use my car for other stuff, right?

56:25I can do that and I can get paid. We're also seeing that there's machines that doesn't have to have humans. So it could be my fridge, right? In the future state, and you've tested that technology out, worked pretty well. Anything with a screensaver, if I take that screensaver, I've now given permission to, you know, you to use my compute. so surely that that sounds like crypto payment right because that's the that's the easiest way of making machines machine payments and globalized payment system where you're not having to use currency we need to push we need to make sure you're a canadian i don't want your canadian dollars and i can't have got no bank account to put them into so i have to convert them you're just it's ineffective and it's not far the moving around small amounts of money or value different currency changes, going through traditional systems is definitely a bottleneck, absolutely.

57:14But I just want to back up as you said some interesting stuff. The idea of having the Uber for compute, I think that's a very good top-level way to look at remuneration for providing a service access to your access to compute power. Distributive has a much more holistic vision of this. It's not about, hey, who wants free money, put your hand up and sign up your computers. That's the many companies have tried that. I think it's boring and I think it's unsatisfying, you know, to humankind. What we want is for active participants in the innovation journey and sort of like staking a claim or taking ownership.

57:58Compute is one form of value, but the other one is also like private data. Your fridge in the future won't just contain your food. It will have a few hard drives in it. It will store and analyze footage from your local security powers that will look at if a person is starting to have changes in their gait as they're aging or if they're dizzy or if they're couch late or if they fell or something like that. Like if you have an ownership say on your data and on the compute and all the results of it and aren't just uploading it to some monolithic cloud services provider, then all of a sudden you're a participant and not just a subject in this digital age.

58:34So some people, yes, sure, they can make some money. You have agency because your data is part of you, right? It's a byproduct of you. That's it. And so participating in these mesh networks is the best way to stay involved and maintain a voice and some control. And so the future that since we've met four years ago that we've made good on producing is one in which participants are truly participating. They're not just getting paid for the computer. they're finding these Lejeune-Oder pairs and they're elucidating all the formation mechanisms for galaxies, dark matter and helping uncover some of these things or Cartridge, Kellogg's serial sales data.

59:17So let's say it becomes also cause based, right? Humans love a mission, they love a cause. So I'm going to say to whoever it is, is running a huge project on something that matters to me. Pancreatic cancer and genome editing to remove that. So I can then say, well, you can use my compute for that. So as opposed to giving you money to the Pancreatic Cancer Society, I can say, no, just use my compute as well. And so I just permission then. So I'm now doing a mutual good, societal good, out of my own free choice. And it's not about money exchange. It's about, I'm giving you something of mine that's valuable.

1:00:03Well, a perfect analogy for that. And then I'll come right back to it. Like I agree 100%. Bank of Montreal gave$5 million cash to the AI hub at the University of Toronto. They turned around and they gave that$5 million cash to Microsoft Azure. So Microsoft got$5 million. Bank of Montreal, BMO, got the$5 million tax receipt. And U of T got to do some AI computing. what if you provided$5 million worth of compute to U of T and the value of that$5 million was the tax receipt, but the green cash, as they call it, never moved. BMO has hundreds of thousands of enterprise servers full of access compute most of the day.

1:00:48They could have donated$5 million worth of computing power or that's the enterprise version. You could ask 5 million people donating a dollar worth of compute. Real Vision has hundreds of thousands of unique visitors per month. Subplete Distributive is done, and I haven't really gone heavy on the tech and innovation we've done, but this is important. We've created five lines of code that we can put in your website that would make all multiple 100 ,000 visitors turn into compute nodes if they accepted. That would provide power, subtleties, just by putting those five lines of code in the website.

1:01:23So if the New York Times put our five lines of code... So we would say to our members, let's say, listen, if you want to help us continue to build our AI, which is for the community, by the community, essentially, we can either give that money to Azure, or you can be truly part of this. Yeah. While they're watching your content, their computer is basically sleeping. Other than what it's displaying on the screen, their processor, some proportion of them, could be helping work on Real Vision's models. And I'm using real, I'm not thinking on Real Vision here, but the same thing for the New York Times, a little bit of mail and basically any community with hundreds of thousands or millions of online viewers.

1:02:01I mean, if you put these five lines of code into the New York Times HTML page, you have six million compute nodes just like that available. That's more computing power, like I said earlier, than all of Canada's national research infrastructure put together just by putting six lines of code in the index.html file of that website. Think about YouTube. YouTube bought by Google. Every time you upload a video, it's being encoded on Google servers, but instead they could be distributing that video encoding into pieces onto computers of people that are already watching YouTube while they're there. And you could use this truly to eliminate ads or provide an alternative.

1:02:40Six lines of code, get rid of ads. It will help us run our models on you, the patrons, instead of in the cloud. That'll be far more cost-effective than these ads. And also we could pay people for that as well. We'll say, thank you. You get X dollars off your subscription next year because you've lent us compute to help train the model. So you get an economic incentive out of it. And so everything we've talked about, just to summarize all this, we've talked about a lot of things here. We've talked about the ability to donate, compute, and get a tax receipt from Children's Hospital in Eastern Ontario, for example.

1:03:21They're looking to recognize philanthropy, not just in cash, but donation of time and services, and now compute. We're in the digital age. It's time to recognize the donation, the value, the donated value of compute. And thankfully, we have the cloud service providers who've laid out 70 pages plus worth of the actual value of compute. So I think it would be very easy to recognize the value of compute because it's a market commodity that's been well established. So that's the donation model. But then again, there's this web collaborative online web community model where just being on a page allows you to participate in the content creation or AI model creation that serves you anyway.

1:03:58You to them. We'll just talk about mail, like anybody with these online presences. And same again, to bring it back to these participatory AI models at the edge. If you want these heterogeneous compute fabrics and sensor fabrics made up of different owners, they all have to be incentivized fairly and they have to trust each other. And it will power the model that, again, gives value back to them from detecting, you know, when roots are ingressing into the water lines, they have to replace certain searcher pipe or optimizing the bus routes or what have you. So that's the future that we see. Again, I'm not saying distributive is going to be the one to do it, but I certainly think the future is…

1:04:42Compute can be a common good. And people have been saying that for years and years and years, but I think it's more than that. I think it's a deliberate ownership cultural mindset of the people with their hardware and infrastructure and data, where they're participating in this digital age and not just passively collecting income, but they're picking a cause and they're, they're, they're dynamically interacting with it. I think it'd be wonderful to have a YouTube powered where all the video content uploaded was being encoded and done by the community of watchers itself. So it becomes a self-sustaining thing and we can cut down all these, these data center costs altogether.

1:05:22And does it become more decentralized in terms of editing and everything else in terms of, um, sorry, in terms of, um, any centralized entity stopping something. So if the compute for all of the videos is being done on a distributed network, it's almost impossible to shut down the network, right? You could shut down individual worker nodes, but the work would just go somewhere else. So it becomes very resilient in that sense. Yeah. Okay. Two final questions. One is, I know a lot of people are going to be listening to this and thinking or going to comment about Filecoin. So what are they doing?

1:06:01How is that different? Just so people understand how fundamentally different it is. Filecoin is tackling an equally gigantic form, which is more from the storage side of things. So there's a lot of unused storage space out there. And if there's a way to intelligently stitch together those pockets of excess storage, then you can create a decentralized storage cloud. and so it's probably a really good way to use them as an analogy if you want to understand what we're doing we're on the other side of that fence we're taking up all the unused pockets of compute excess compute capacity both of these are aws right so they do the compute and they do the storage and what's happening here is there's two distributed models that are attacking the centralized model.

1:06:55And more, yeah. I mean, AWS is more than just computing storage. They're networking and there's software layers and platform layers, and there are a whole bunch of things. Like they've had a lot of time to build a lot of things, but they won't tackle, by definition, they can't tackle the web platform community sharing aspect in real time because they're not web-based. And B, they would be attacking their own business model by allowing people to use computers and servers that are not theirs. And so they have too much concrete fiber-octed cable and silicon as sunk costs that they won't be able, they'll be hesitant to implement technologies that allow people to become self-sufficient.

1:07:40Of course. If you put it only. There's a couple of other interesting ones in the crypto space, just because it tends to be more centralized. Hive Mapper is one, which is a decentralized version of Google Maps. Super fascinating. And then there's the other one, Helium, which is mobile phone networks, Wi-Fi networks, decentralized. So people, it's this centralization, decentralization mega trend. And we're seeing it. And it's healthy. It is healthy. It's good. Final question. How many people are using your technology right now? And where are you allowed to discuss it? What kind of users and how are they doing it?

1:08:22We have 2 ,000 people right now. I was just looking at the numbers. So these are still small, but we're in a dozen universities. I was saying earlier, it's free for academic institutions in Canada, States, Kenya, Brazil. Brazil, for example, it's doing live forest fire detection using all the computers that are on the campus there. There are 8 ,000 cameras across the Amazon. And if you can detect smoke and fire at the earliest onset, then you can fight it more effectively. But if you were to run 8 ,000 cameras persistently, AWS would cost you millions of dollars a month. So it's not even possible or it's not worth it.

1:09:03Force fires create hundreds of millions of dollars worth of damage. So you could argue this. But if you could do it for thousands of dollars instead of millions of dollars, then it certainly makes it more palatable. We're in six hospitals, creating private compute clusters in hospital in order to optimize certain schedules. And now we're starting to get into some genomics. Actually, one more use case here. So I meant to summarize with users. This one is new and it's unique. If we can create a compute cluster by an hospital, as we happen, and you create a compute cluster by a different hospital, there's ways where you can run models.

1:09:38You've heard of federated machine learning, and federated models before you can run analytics on data on computers behind each hospital's firewall, and you can fuse the results that leave the raw data behind each firewall. Now think of a hundred hospitals, think of a thousand hospitals, each with, for example, small patient cohorts with psoriatic arthritis. There are new genomics approaches that allow the right medicine to get to the right person on the first try, unlike the trial and error attempt that we do nowadays, that would save hundreds of millions to billions of dollars worth of the wrong medication going to the wrong person on the first try because it means they're not going to be working within months because they're off work while they're going through these treatments.

1:10:25But you can't take all that small patient forward data and put it together, whether it's the cloud or somewhere else, because it's not allowed to leave the building. Data sharing is the biggest barrier to innovation in the precision medicine landscape. So I say, again, what if you can send compute to the data instead of bringing data to the compute, which is the cloud model. So bring compute to the data. And now you have each of these hospitals acting as their own mini clouds. But if they cooperate in the sense where they run their respective pieces of compute and then fuse the results together, now you have something different.

1:11:01You have hospitals or individuals or whatever, maintain ownership of their data, making some revenue from the fact that they're selling the results of those computations, but not giving up the underlying data. And to bring it back to Brazil, we're chopping down the rainforest right now. I think four-fifths of medicines around the world come from the biological materials that we find in the rich forests there. We're losing that. Right. So imagine instead setting up in organizations with some schools for all we know, for what it matters. And these could be many repositories of collected genetic material, sample material and computers.

1:11:44The computers can be used for students and the pursuit of knowledge during the day. And they could be running all kinds of data pipelines, data science pipelines at night on these data things, generating revenue locally to replace deforestation. And so this idea of data ownership, doing the compute, selling the results and creating a revenue stream, it's basically, it's a distributed decentralized version of a cloud services provider. Imagine a virtual version of a hyperscaler where everybody gets a piece of the pie, providers of data, providers of compute, the marshal of communication, the organization, the orchestration.

1:12:25This is what I mean by participatory. If you think about it for a pharmaceutical company, it's a lot cheaper for them to distribute out the scientific research to the universities. Everyone's running their own data. They can sell it back to the pharmaceutical company. They just take what they need from that data. They can develop new drugs, et cetera. They pay for it. Everybody's a winner. Everyone saves costs. Well, in this model, in the prior model, pharmaceutical companies would just buy the data. from the get, like, the data is collected and refined at the source. They buy the data once and boom, the people who provide that data, they're gone.

1:13:01It's like selling your IP. It's gone, right? Instead, they could hold on to their genetic sample data and the pharma companies can just launch job. They can write the code that they were going to write anyway. They write their analytics pipelines, their AI models. They write their queries. They write whatever it is they were going to do if they had that data and they launch it and then it runs remotely at those sites and then they get the results back. Money or revenue is generated for the custodians of that data. It allows local economies. The pharma companies might not be happy because the first thought is, hey, if we have the data, we can run all 10 ,000 analytics.

1:13:42Now we have to pay 10 ,000 times for the analytics that we'd only have to pay once to get that data. But if you think about it, they were just going to upload that data to the cloud and then pay the cloud 10 ,000 times to run it there. So it's still an order of magnitude cheaper for them to not buy the data from where it's coming from, but just pay to deploy these pipelines at a reduced rate, which creates local economies over there. And of course we can, we can expand this, but this is what I mean. Push away or let's create room for everyone else to participate in this revenue creation opportunity at the local economic level.

1:14:21You don't have to answer this, but surely you've spoken to Google about this. I mean, surely they would once put this in every browser and give it a permissioning system. And it's like, it's a game changer because they're the third runner in the cloud providing thing. They're big, but not as big as the other two. This is kind of what Microsoft did. The nuke button, right? Microsoft pressed the nuke button and said, fuck it, let's do the AI one to overtake Google and destroy search. It feels like somebody like Google or Microsoft or somebody is going to say, you know what? We might as well just use this technology and just completely take this over.

1:15:01I mean, in Google specifically, if they find that idea interesting of leveraging YouTube patrons while they're watching their content in order to do some of the processing for them in lieu of the ads that we keep getting every 20 seconds on YouTube videos, which would free up Google's data center capacity or GCP capacity to sell to more customers. I mean, they're... I'm kind of thinking bigger than that. If your little code is embedded in every single Chrome browser around the world, so now my computer, every time it goes on screen saver, is available for compute. I give permission. Google takes a slice.

1:15:46They become the world's largest compute provider by doing distributed compute. It would be massive. if they were to do that and it would have to be an opt-in basis because people don't want to inadvertently have compute cycles taken from it, even though it's a favorable it doesn't touch your data, it has nothing to do with pictures or contacts, it's purely just compute power, it's not storage or files or whatnot if Google were to do that it would be the most powerful supercomputer in history period uh why the hell would they know because nobody has invented yet a pure web-based distributed computing platform until us well that's what i mean i mean i just you know all i'm thinking is like you know as you scale this business you've proven it out you're starting to have great success i'm just i'm just thinking through okay well where's the massive disruptor here yeah you You can do every university.

1:16:48You can do all of these research things. But really, if every computer in the world that runs a Chrome browser can do this on an opt-in basis and everybody gets paid, including Google, it's like there's free money for everybody. And everybody saves the costs and it destroys Microsoft and it destroys Amazon, which is what they want to do. Well, I don't want to be conned between their wars here. No, that's right. But no, especially with the current chip shortage and everything else, I think recycle, reuse. I think there's a lot of compute out there. I think in order to tap into it, you need a system that's secure and trusted.

1:17:26And web technology has been around for decades now. And if you're just surfing the web without downloading stuff, it's one of the most secure platforms in terms of executing untrusted code ever developed. It's the most ubiquitous technology on the planet. It's fast with WebAssembly and everything else. I think we think it's a no-brainer. So yes, if Google put these experiments that were putting some of this code into any of their pages that they host, they would have instantaneously millions and millions of extra compute nodes and they could remunerate those compute nodes for their participation.

1:18:01So there's a lot of good stuff here. I mean, I look forward to redistributing value of compute. So a computer, if you buy in North America, it's$2 ,000. If you buy it in Kenya, it's still$2 ,000. The difference there is the average salary per annum. So there are places in the world that are being excluded by cost from participating in digital economies and AI. Right now, they say the rich get richer. Well, the computee are getting computeier, right? And that's the price of admission for doing AI. So AI is also accelerating the divide, right? Those who have the means to do it and those who don't.

1:18:38so there is another play it's not just making people passive income but it's also making and therefore accessible from an ease of use, what have you we're excited we're very excited about where this is going thank you so much for the exciting questions the conversation, hopefully we'll avoid Skynet who the hell knows, one thing I will do is I will check in with you in a year's time or so and see where you are because I've been following this journey and it's just a fascinating journey. I just love what you're doing and it's just very, very big and it's very disruptive. So I love it. Great to see you, Dan.

1:19:19And as I said, I'll get you back soon. Thanks, Raul. Take care. Okay. So there was a lot to get our heads around there. Dan is very modest in what he's done, but to understand that any computer, via a screensaver, can permission decentralized compute, whether it's private or public, that is going to change the structure of how society uses compute, how AI works, how everything works. The scale of this is simply gigantic. And he's just starting in this journey. We're privileged enough to see it early on. As I said, I've been following this journey for about four years now and seen how far he's got and where this is going.

1:20:07And right now we understand that all compute is owned by very few people, but maybe that's not going to be the case. Can he truly disrupt by 92 % the cost of computing power? What does that mean for other countries? What does that mean for all of us? But there's some dystopian sides of distributing compute and distributing AI and having it in your fridge, in your neighborhood, in your house, everywhere. What does that mean for humanity? And when you add the quantum computing as well, it means another game changer overall. The exponential age is relentless. It's not going to stop. And the game theory that he talked about is going to continue to play out.

1:20:50So it'll only accelerate. And there will be regulation on many of these elements here. but it's almost impossible to put a distributed genie back in the bottle. So whether we use it to our advantage or fear it, that's up to us. But anyway, super interesting, mind-blowing conversation. What's up, revolutionaries? Thanks for tuning in. For more content like this, head over to realvision.com and get unfiltered access to the very best, brightest, and biggest names in finance.

From the publisher

Raoul welcomes Dan Desjardins, Ph.D., CEO, and co-founder of Distributive, a groundbreaking startup that allows the remote use of millions of computers with a technology that is exponentially more efficient than anything before it. Dan and Raoul explore a future, as enabled by his startup’s tech, where all your digital devices, from cars to laptops to smart TVs, would get paid to contribute their computing processing power to form the world’s largest and most affordable supercomputer we’ve ever seen. Recorded on August 23rd, 2023.
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