Palo Alto Networks’ Nikesh Arora: AI, Security and the New World Order

25:28And we get 20 pitches a week right now for like the AI powered SOC analyst or the AI SOC. What is your vision for? You already have one, so you stand them our way. It's like, you know, try to follow them. What's everyone how that evolves and what the end state is for kind of humans and security? Like insecurity at a very first principle level, we sell two things. We sell a sensor with sensors at the edge of your parameter, whatever the parameter is, whether it's your laptop, whether it's your application, is it your customer accessing your bank account, that's the parameter, right? The parameter is the edge of your technology, technological footprint, that's the parameter.

26:06So we also send, so if it's sit at the parameter inspect, it's like having like a digital security card at the parameter, we also parameters, and we protect the parameters, we inspect the parameters, we block the parameters, right? And then what happens is that somebody's in the bad app, somebody's in the back door, somebody's in the side door, by mistake, then people enter through there. So we sell sensors, we protect parameters, and then we analyze data in the back end to look for any vulnerabilities that you might have been created by the infrastructure that you have. That vulnerability could be exploitable in the future, so we look for potential exploits, and that's what that's going to do.

26:40Which means, and the reason I tell you stories, which means if I want to sell and I power anything, I need to be at points of data collection in enterprise, because AI requires data. So, again, this is the old adage, right? I am in the best place to collect all this data and analyze it. And of course, that doesn't mean anything because in history, people who are in the best place got knocked off their knees and somebody else came and built something better because they were lazy sitting on their honches. Now, the only thing is we don't want to be lazy. We don't want to sit on our honches. We're out there hustling as fast as we can, not as nimble as possibly in a startup, but we're nimble enough as a company.

27:18We've done 27 products, which are in the magic corner and to the right. So we're not shy, but I think every security company, every security star that's going to walk to every customer I can build this for you. The customer is great. How do we start? Says well, let me go give away bunch of sensors around the perimeter so I can collect the data. Holy shit I only got a bunch of you guys in the industry. You got sensors out there. Then what do you want to do? Then give me all your data I'm like wait a minute you want all my data. Who are you again? So I think that's kind of that's kind of the risk you run into is this is a large data problem and And large data problems are harder to solve as a startup, not to say it's not being done.

27:55There are people out there raising $500 ,000, but not every week into that insecurity. Very enough. Do you think security themes are comfortable giving arms and legs? I think so to speak, like, a gen tick. Oh, no, I think they're petrified. Do you think that flips at some point and when? Well, I think most of security terms aren't asked, right? I mean, we more wouldn't exist if they are taught the security guy. Tesla FSD possibly would not exist in security guys. You're crazy. You're giving the car control to your car where all kinds of bad things could happen, right? So from a security perspective, these all bad things happen.

28:31Look, I mean, security leaders are or the most part of risk managers, right? They're risk managers. They're trying to understand what the business need is and how do I deliver the business need with the least amount of risk possible. The safest room in the world is one with no windows and no doors. but it's not very useful. So you got to let doors and windows be created, which means you're managing risk. So security people are risk managers. They sit down with the business, understand what potential risk does it cause? They'll give you some ideas as to how to make sure that you protect against that risk.

29:01Then they'll set up a whole bunch of safeguards. It's a, you know, you know, Gate one, Gate two, Gate three. If it doesn't stop, get stopped here, get stopped here, and then it off to the races. I think security people will allow the arms and legs have to because that's kind of the crying need of the hour. I think the question will be, what kind of security tools do we have in place to create those protections that customers can comfortably go ahead and use these capabilities? But that's true with every technology. Our partner Jim Gets, and for any listener who's not familiar, Jim has been involved with Palo Alto since formation.

29:34And Jim, Jim has a creative mind. One of the things that Jim mentioned was after you came in about seven years ago, CEO of the Innovation Engine, and Palo Alto really started pick up. And I think we see that today also with how quickly you guys have bounced on AI. I guess the question, maybe two questions. Question one. If you had to reach yourself, if you had to rate Palo Alto on agility, nimbleness, ability to respond to market conditions, I know you're a tough grader, so you can't give yourself an A+. How would you grade yourself? And then question number two, you do have all the advantages of scale and data and distribution and being at those points where you need to collect the information to do whatever detection remediation you need to do, but it's hard to get a big organization and move fast enough to respond to the markets.

30:21So question one, how would you grade yourself question two, how do you drive agility at this scale? Like just practically speaking, what do you do to make that happen? You know, let's go first, first. I'd give us a seven or seven and a half on scale of 10 in terms of agility because we We have about 15 ,000 people. Pop, solubiles, 5 ,000, 6 ,000 people in our product side. So there's a lot of stuff, a lot of complexity, a lot of legacy stuff that has to be brought along, a lot of stuff that has to be ticked and died to make sure that these things work. And you know, any part of the challenge you know is that you have a stall base of 70 ,000 customers, right?

31:00Any tweak you make, which impacts 70 ,000 customers, brings their infrastructure down, you lose your license to operate. So it's not like we can innovate, throw shit at the wall, and see what sticks and go with that and ignore the other stuff. So we have a serious responsibility in making sure a stuff that we build that we put in line has to keep performing and not bring down any other infrastructure because they're the best securities in line. We have to be able to watch what's going on. Inline security has the property that if it doesn't behave, it can impact your infrastructure. So we have a very high responsibility from an availability perspective and not disrupting our customers that we have to apply a higher precision standard as it relates to inline securities.

31:38From that perspective, I think 7 .5 is not a bad place to be. I see probably we were at three or four, seven years ago, as an industry. I don't even say a power out to other, as an industry with three or four. And I see the industries move to the agility. If I look at some of the newer players, they're moving faster. They're not sitting back anymore because they see the playbook for the future is not where you let other people sort of come by in the new swim lane. It's nice to see you, you know. Congratulations, great job. Not as like, oh, you should have the get there. We're going to go chase them down.

32:05So I think the industry dynamics have changed. In terms of how do you drive agility, you as you know possibly from talking to Jim and from talking to us that we have no sort of qualms about going and finding people who are doing it amazingly well and embracing them and saying you got this figured out, let's go to it together, we're on fast. Right? Sometimes companies get trapped in this idea that I have so many resources I can take them down. they don't understand there's a team of 50 hundred motivated people funded by people like you are out there running at sort of in a light speed who build an amazing Product which are gonna then dip the get traction and they your competition on every day in the market and they get better and better and stronger So the question is when's the right time to say oh shit less embrace them They've got less resourceable so much kicker ass.

32:54Let's go make them part of our team We've done that 19 times as you've seen so we're not we're not shy about embracing innovation if it doesn't come forth Then having said that, I was looking at it the other day. I think more than half of our products are made in Palo Alto, right? Not acquired. So it's not like, you know, we only have one strategy we do both because in some cases, building on our platform is a lot easier from a go -to -market and deployment perspective than buying something and spending time integrating it. So we've gone to the point of scale that it's more important for us to innovate on our platform than just go out then really nearly try and look at the fastest innovator and try and stick them onto our tech platform.

33:27So I think from that perspective, of the type constant balance, what do you buy, what do you build, how do you embrace somebody else doing it better, and then you've got to be nimble and say, you know what, I am going to get some stuff wrong. The question is, when you get punched in the face, how quickly you recover, right? Don't let them count to 10. So, it's kind of like how you maintain agility, and then, I mean, the only other thing is, I call it relentless inspection. Relentless inspection of your go -to -market capabilities, of your deal, relentless inspection. What's the sort of thing you might do in one of those relentless inspectors?

33:59in conversations that somebody else might not do. Well, I give example. For the longest times, I kept seeing us doing really well in certain things in our teams that create all these incentive programs to drive more behavior to get people to sell. And I have my sales leaders telling me that everybody has an account plan. I said, these things look like very interesting things. I should take a look at one. So one fine day is possibly, you know, half ago we're having a tough quarter. I said, great. Here's what we're going to do. I'll start from customer number one and keep going. You show me your account plan.

34:34So does that mean? Send them five slides and fill those five slides and show up on a Zoom call. You should have been explained those account plans to me. And I'll pass forward. I've probably been through 750 of them so far in the company. I did about 15 yesterday. And it's like, theta now that are 500 people dialed in from across the company. Wow. Wow, you all get to watch. Get these sales person pals, we can dial in and watch an account review and process. Because for me, it's basically them learning how to do it. And we go through it and say, who's the person, who's the buyer? Does they understand the product?

35:08What did you pitch? How do you sell it? Did you sell it? Did you talk about this? Did you not talk about this? Why don't you talk about this? And by the way, the best thing for our teams is, if you feel that this doesn't look as robust as we'd like it to, me, be a Jenkins or a president, and many of the product leaders, people get involved. We're not just readily inspecting, we're actually assisting. I don't like you'll be surprised that people have been up their laptops are open, like people are pinging people, LinkedIn texting people saying, hey, do you know this person in this company? I don't think our plan is robust enough.

35:38We don't know the right people. Let's go. So, it has kind of like grassroots, I have a little white board in my office, where I write down things, which I want my team to remember. and the second thing is not it, it says sales is a math problem. So, which people find hard to understand. Like, look, if you have the best product in the market, and you are able to win and generate billions of dollars of DCV a year, then the question is, why are you losing? It's not a product because there are people buying the product that is working. It's not that nobody's willing to buy it. It's not that lots of people are willing to buy it.

36:19What happened in that process, what you were selling that you didn't win somebody else did? Let's go inspect it. And sometimes you'll find some product things that you need to fix many times to just find execution errors. Let's keep going on this thread of driving performance out of people because one of the other things that Jim said was that you have sort of an exceptional ability to recruit and retain really exceptional people and that you sort of drive followership in a way that's unique. like you're pretty hard on people and you demand a lot from them. Yeah, I went to, I want to speak yesterday for a person who I worked with at Google.

36:55Her name is Lexi Reese and she actually ran for a sentence. She has a startup now and she introduced me by saying, yeah, I didn't quite enjoy my time when I was to work for you, but I'm a better person. I learned a lot. So I'm like, well, I'll take it whichever you give it to me, but anyway, sorry. Well, and Jim said you balance that with a very nice human approach where people know that you care about them and you'll go to batch for them in the right situation. So I'm just curious what you've now been an executive in a variety of contexts and you've been successful every time. Google as a consumer business, Palo Alto as an enterprise business, you know, you kind of grew up around marketing and sales and you become more of a product person.

37:30And so you've got this diversified set of experiences from that enterprise person. You're a full -fledged enterprise person from now. Right. I guess what leadership principles or what leadership techniques are sort of context independent that work at each step in your journey and are there other things that are kind of palo also specific but I'm most curious like what are the sort of core principles of your approach to leading people? Not a lot of palo all of this specific right because at the end of the day my senior executives are not writing product documents right they're analyzing strategy analyzing go to market they are understanding it of course.

38:09Do I have experts to subscribe of course? We could survive without that you know. So near Zook or Fahnberg, Lee Kvairich, what you product officer, so the other product leaders that we have, very smart guy, they understand what our products system is in the street, they act as sounding boards sometimes all challenge them, I find spare pushbacks, the cultural accept. So there's no getting this done right without the right domain knowledge. So you have to have But I think outside of that pack that there's domain knowledge, you see after the right people, like as is possibly understood that I don't suffer food because I can fix a lot of things I can't fix that out.

38:48And if somebody doesn't get it, why should I show it? And check them out, show you around yourself as smart people. But you find them, keep them, because the next question becomes, you know, what is the attitude these people bring to the table? As long as they are willing to learn and humble and they understand they're part of a team, all systems go. Like I have a principle that I was joking even in all hands and said, I have never met a person who comes to work to screw up. I wake up in the morning, let's go sunshine, it's time to go to work, bless me, see how badly I can do today. Everybody walks in with the right attitude.

39:24It's something that happens at work that we create that causes the unintended outcomes. It's not the person who walks in. If you found the right person, whether the right domain knowledge, right intelligence, the right attitude, then the rest is upon us. And then the question is, how does management create the environment that people can thrive? And it's not just about, you know, happy, go lucky environment. Like I always say, there are three jobs that we have as leaders. One is we have to identify the North Star. People have to know which mantra we're going to climb. You get the best climber, isn't it?

39:56You find out you haven't told the which one. They're all on eight different monitors around you. They'll really share what happened. They're all in their place. So my job is to make sure I identify the amount and I fight or argue, I debate, you know, I could Joel, whatever needs to happen to make sure we have a plan of record where we're going. But ample degree of input, but the end, somebody's got to make a decision. The next thing is, is a chivalry. Can we write a plan to make it happen? The last thing you want is people come and say, I get it. You want it to build this. But he gave me, you know, one pickaxe and one shovel into people.

40:26Right? And he wanted me to go dig the platinum mine. It takes a lot more than that. So the next question is, is there a feasible plan to get it done and are you resourcing it right? All right, and very often companies, you look at our industry, right? A lot of people had the right ideas. When I came to a bottle of auto, it's only a joke sometimes. I didn't do anything different. We had a cloud security acquisition we'd done. We had an XDR acquisition we had done. We had the idea of building a SIM. We just hadn't resourced it. We hadn't written the plan for it. We kind of knew what we wanted to do, But you haven't sat down debated, argued, so what does the future look like and we hadn't we hadn't written the plan We hadn't resorted.

41:01We have one tenth the resource that we need it so you don't have a plan you have an idea ideas are not good enough. You get a plan in an austral You have to Resourcing that you can sort of execute it's a plan the third job is management is to keep communicating it and reading out Things I block the execution of plan whatever it is whether it's a a person who's not doing it, whether it's a resource that's not available, whether it's a contract that's not working, you know, it's blogging and tackling and sort of making way for your team so they can go and execute behind it. So if you follow those principles, they find the right people around you and you know, don't suffer fools and have a good time while doing it.

41:41Sometimes some people do get more scrutiny than the others, but it's good for their career and good for the character. It's amazing. Let me ask one more question on sort of management leadership and then maybe we can go back to some AI topics. So you mentioned the 19 companies that you guys have acquired in the last six, seven years. Maybe two questions on that. One, at the moment when you're pulling the trigger, what goes through your mind? Like, when it's time to make the go, no go decision, how you decide that an acquisition is actually an acquisition you want to make. And then maybe second question, one of the things our partner Jim mentioned was that pretty much all the founders who've joined forces with Palo Alto Networks of stuck around.

42:22A majority of them. So yes, so what you do post acquisition to actually keep them around, and maybe it's the same thing that you're just talking about with leadership generally. I learned more than that. Like, I think before we get to decide it's an acquisition we want to make, we spend enough time to understand, you know, is it even worth engaging with the company for a few hours or a few days, right? And we have some principles. I don't like buying number two or three. It's a lot of founders for a lot of companies, They say, you know what, you know what, the first one's a billion, the third one's two and a million, let's just say the third one, we got enough resources.

42:55Well, spit and shine, it's gonna make it brand new, everywhere the billion dollars. Well, there's a reason it trades a three and a million, not a billion, first of all, which means they possibly have some gaps which the customers have identified and you have. Two, you didn't actually take out the biggest part of the market, it's still gonna be four steps ahead of you. So, now all you've done is taken an imble startup, which is number three, it possibly made it slower. It's quite all your love and attention to it. He's like saying, okay, well, let me like bring me along about So now you're suddenly slowed down number three you enhance the the opportunity of a number one or two So you said then it's okay and a lot of times you joke about it saying I wish this this competitive We keep bought by somebody in competition because it's long down So so we make sure we're only the kid one and two at best and sometimes they're neck to neck sometimes They're chosen two different parts and we did that in the browser space You know very happy with that acquisition of talent.

43:43I think they string really well with that in DSPM with dig actually in our industry what happens in spat and Sonya is that if first people looked at me and say what the hell is this guy's buying these companies I don't know what his plans are now he actually have a slide we keep track of once we buy something in a category that category becomes hot so people think we know something they're done a good job of what about that but like I think the principle is you got to make sure you're buying the right sort of right player in the market then you got to make sure that you can convince the founders that they believe a better together story then they go at a loan story right There's no sell and dump because not gonna happen.

44:18We're not gonna take the asset because when you're buying you're basically buying a North Star an execution plan and a team that executes but usually they're a third or 40 % down the journey It takes more to 70 years to build a great product Usually these things are three years out three or four years out They haven't fully matured into a full product that's gonna win in the market so you need them around and use a team around and And still, once we figure out this is the right company, the right attitude, you know, we can actually make it work. And there are now given our scale, there are some technical considerations to be able to rewrite the stack, which takes longer.

44:52Is this a complimentary area that can just run on our stack easily? Is this something you've never done before in which case it doesn't matter with stacks on? So, a lot of those considerations from an integration and time to market perspective. But let's assume all those hurdles have been surmounted. And we're actually engaged to the company. I have a rule, I walk in and tell my team and I live it. I say treat them on day one as their part of your team. Because if they're gonna work with you, they're gonna remember every interaction. In very often, I find many companies, the most well -intentioned company, start treating it as a choirer and a choir.

45:32I live, I come from a country which was a choir, a rule and I don't like this idea. There's no like one rules the other is like you know part of the team and the dates that you'll get signed Well log about it on the same page Well, we turn it around the same stock price and same business forward. So For that six weeks that you're in that discussion phase. How does it rise? It important that You're the acquireer and you're the acquired so so let's assume we do that We like a company then I send off the finance and accounting guys and legal guys to do diligence and I tell the founder and the team saying you're job now in the next six weeks is to build a joint product plan and a joint org chart.

46:08And at the end of six weeks, if you don't like the product plan, or I don't like it, and if you don't like the org chart, I don't like it. There's no deal. This is a lot of behavior. The first two three times we didn't do that. And we discovered we spent the next six months arguing about what the product should be and who should be the boss. That doesn't work. This is a bad idea. So I'm like, hey, buddy, you want the money? You can have the money. It's my house. I'm going to paint it yellow. You don't like the color? Tell me now you can get somebody else to paint it pink. No problem. So That has an amazing cleansing property Because you're making a decision with all the facts in front of you saying if I get part of you be part of all So this is going to be the product strategy.

46:48It could be yours. It doesn't not be mine. What's more now? So what do we have a joint product strategy to not start and we have a joint plan of execution and then Very often, badges go back to Jim's comment. Most often, the founders we have bought companies from, become the senior vice presidents of our company running their business. Our people work for them, which I think is unique in the market. Very often, you'll find there was an acquired RERSWP who ran crypto or blockchain or pick your favorite using non -security terms to keep it, protect the innocent. But you say, oh, since I'm responsible for this, these people are gonna work for me.

47:26I'm like, wait a minute, you had all the resources you lost to them. We're not going to have them go work for you. Maybe you can learn a few things. So we did that a bunch of times. And in some cases, our teams worked for them really well. And some cases our teams left it just fine. So I think those are some of the things that allow us to make these amazing founders come work here and actually drive more value for us collectively. Nick, I want to ask you about some of the chess that's now happening on the AI stage because I think you've played the chess game so flawlessly in the security market.

47:53And you know, you have so clearly emerged the winner. The AI space by contrast feels just white hot competitive hunger games right now. I'm curious your view. I think a lot clearer than that. It's just not clear to the naked eye, but I think it's a lot clearer. Same more. Yeah, tell us more. If you think about the state and maturity of AI, you know, there are two extremes. We'll call them the very precise alpha -go type situations which, you know, them as a Google build together which are, I'd say, fine tune models which are designed for drug discovery or the bio -former field. And there you see that they did a really good job.

48:38They focused on the trained right data. They hopefully tweak the models in such a way that that can actually become a useful thing for society. So, you have that which is highly tuned AI models, very toss -specific or category specific. And then you have the generic ones. And the generic ones are, you know, the rage today between the Claude and the mistrawls and the Gemini's and the opening eyes of the world. And those are large. They're all encompassing all knowledgeable. But you saw this movie before, right? You saw this movie in search. And as a Google, you know, they had vertical search because the large Google search could not do as good a job of local search, so you have local search.

49:17The God couldn't do a little job product search, so you have product search in Amazon. So how can you be amazing at everything in this space when you couldn't do it in the last few technological evolution? So I think we're dying. We're going to have to figure out what the distinction between in a general purpose, large scale. I know everything. I can do everything model versus models that are fine tuned for task. And I don't believe that all the perfect information in the world exists in open domain that you can go out and build it without specialization, which means you are going to need specialized proprietary data to build these models.

49:50And I don't know how you share data but I mean, Glaxo's mid -line and Novartis and Pfizer and say I can build the best drug discovery model in the world because I have perfect information. Right? So that's a question that remains to be seen. So I think over time you'll see a bifurcation from an enterprise use case. And in our business in the enterprise side, you need precision. I can't afford to be wrong. You know, wrong turn by a Tesla is going to kill somebody. The wrong block by Apollo also is going to bring somebody's infrastructure down or a wrong permission is going to let a bad actor in.

50:19So I don't have that tolerance that consumer models can have because they have low consequence. So the high consequence, high consequence applications require a lot better model, a lot more training, a more precise domain data. I think that's going to become a sort of thing of its own. I think everything we're seeing today is general purpose models and eventually they'll of you like, and I don't know the answer was that general purpose models become task specific evolved models or there's a new category of task specific evolved models, which are built more in the sort of genre of the alpha go version.

50:50Now on the on the general models, I think the people who can deploy them against existing consumer properties are sitting pretty. Right? Because it creates more retention, more continued monetization of space. So other Google can deploy a whole bunch of AI against it's three plus billion users across multiple properties or one Zuckerberg can do it These are Facebook and see billion users across Instagram. You know, what's happened in Facebook? That's that's cool. I think Sam's done a great job in building a consumer direct business on the subscription side Which he continues to drive very well and that's becomes his set of set of his his mode now because no other model has built a subscription -based consumer model.

51:32So I think you're seeing the general purpose models being built by existing large consumer properties. You're seeing a new consumer property emerged vis -à -vis in an open AI. I think the enterprise use case is still early because we haven't seen the mission critical applications be developed because of the lack of great training data. So that's what I think. But let me ask you one of the things that's not on your LinkedIn profile is prior to, prior to soft thing, prior to Google, prior to T -Mobile. If I had my fax straight, you were an award -winning equity research analyst covering Telecom.

52:11And I believe that one of your claims to fame was calling the internet bubble and the bursting of the internet bubble. I still have that note. A cell note at Rotten of Look, again, for the number of times I've heard it's different this time, you know, we could all be very rich. So, but there are some things just different, right? If you look at where the AI inflation has happened in the equity markets, it's still in the plumbing. And the plumbing is real, right? It's not like people are driving the plumbing up without substance because you're selling four times of 10 times more chips than you sold two years ago.

52:56So they've real revenues that underpin that. Now, clearly, people are projecting that into a trajectory, which I don't understand. And every day you see any development, you tell me, is target the future or is deep -seek the future? And I don't mean with all its negative connotations. I mean, as a concept, are we going to have cheaper models being built for large -scale application with limited specialization? Or are we going to have a super model in the context of AI, which is going to be expensive, but be able to do everything amazingly? You tell me the answer and I'll tell you mine. Signish, we head into Lightning Round or do you have more viewers?

53:32Let's do it. Great. Lightning Round. Okay. You just bought a cricket team. Why? You know, there's a bunch of us who are together. It runs not just me. There's Tennifuss, including your part in the gym, get.

53:45Brawl failed cricketers. We all have sport aspirants. So it will part of that. That's the part of the passion which says, wow, I can be associated with the sport at the highest level without having the talent. It's kind of interesting. That's one reason for it. Now, you couldn't have a bunch of us buy it who are business savvy and say, where is there a business model here? And if you look at it, the only thing that's left in streaming that is linear is sport. No longer news, television, movies, nothing is linear. The only thing is linear is sport. You wanna watch it when it's happening. Pretty much when it's done, you know the score and you lose the interest to watch that event, right?

54:22the post post event viewership a lot lower in sport than live or viewership every other is the other way around Every the streaming content is the other way around The post launch viewership is higher than launch viewership By this movies or television or any podcast or any videos streaming to do hopefully this one, right? So it's the only linear sport out there is being bit up Clicked with the second most watch sport of the world There's the biggest franchise, hundreds. It's the next best thing. It's in the country, which is the home of cricket. And then every follow the same philosophy that I told you about my startups.

55:01You've got to buy something by the best. So we bought lords, which is the home of cricket. It's gonna be fun. What a cricket teach you about life or a leadership. It's a team sport. It doesn't matter how good you are. If the other 10 people suck, it doesn't matter. It teaches you that, right? You can have a bad day in Newcastle win because you participate with the rest of 10 people. So it teaches you about life. It teaches you about business. You're wearing a Pebble Beach Pullover. I hear you want to pro -am recently. What's your name? My name is G .A. I'm a 9, and it's a combination of the best roles that I could find, luck, and a few misplaced good shots.

55:45In video, 118 bucks a share, $2 .9 trillion market cap, 39 times earnings, and he's grown about 150 % year over year, while we're short. I don't understand it. If you were Jensen, would you be making the same moves? Jensen has played a very long game. I think he's built a phenomenal franchise. I think what he's done is like no less than what Elon has done for electric cars. I think that he took something that he built for gaming, thought about it, understood the large need for compute and Put all his energy and thought behind it's been the longest serving CEO in the world, right? So you can't take it away from him, but they just can't even trivialize it We have to talk about him with tons of respect.

56:28What he's done is amazing He has a vision and he's taking it beyond just the chips because he's slowly building an ecosystem saying my chips work With a lot of other things which together so I don't think from a long -term perspective to give can argue that AI is not going to be relevant. I don't think you can argue for a long term perspective that we will be constantly doing some form of development which requires more more compute. Like in the history of mankind compute and bandwidth and memory have never shrunk. Yeah. So it's not about a start now. I think he's sitting at phenomenal acid. Is it a three trillion dollar acid today?

57:03I don't know. There will be a three trillion dollar acid in ten years, possibly more. What CEO do you admire most? You know, I have a collection of CEOs. I admire traits that CEOs exhibit is very hard to have one item in life because one idol has the property that they could disappoint. But if you admire certain things certain people do, you learn a lot from that aspect of it. And if you have the same circumstance, you might do the same thing. You have different circumstances. You might do a different thing. I mean, I admire Elon's creativity and what he's done for the world, I wouldn't want to work for it.

57:36But I admire what he's done. It's amazing. Like, I always joke with my team. I'm saying, would you go on a rocket tomorrow, is built by the guys around you? I don't think so. But you know, he's got a bunch of people who've been the rocket and people go up in that thing. That's amazing. We've sit in the car, which is not no driver and head and so people have done it. So, you know, what's out there? Did a Microsoft and he took somebody, nobody believed he could turn this around to $3 trillion and all the company and he did. It's amazing, right? So like a Tim Cook, you know, Steve Jobs a hard act to follow and Tim's gonna phenomenal job in taking that amazing company and maintaining it down the middle and concentrating.

58:11What can Mark Zuckerberg recently, right? He's taking that thing around, turned around. Now, you know, the fact there are certain things that they've done which I respect is amazing. That doesn't mean anything about the rest of their lives and I don't need to worry about it. Which CEO is executing the best in AI right now? for all the conversation around Sam, I think what he's done is amazing, right? I mean, before Chad GPD came about, we weren't talking about AI, right? And before Chad GPD came out, you know, you think Google didn't know about AI? I knew what AI went after Google. Do you think Google didn't have a self -driving car then?

58:49They did. No, do you think South that in order I mean, he did. But look at what's happening right now. You can run into a CEO who wants to view the words AI. So Sam has created the next, such as the impetus for the next technological revolution. That's the way Steve Jobs did it with the iPhone. And the fact that was a straight face, he can go out there and get people to commit to spending half a trillion dollars in building infrastructure. And every, I think the Mag 7, everyone wants to see, he was spending way more money in building compute and data centers because nobody wants to be left behind.

59:22I just sound like a great job executing an AI. Now, history is hard and business is hard. And we don't know that means that you'll be the winner in the future. But damn, has it done a great job in getting us to where we are? Yes. I think that's it. Thanks, Nickash.

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