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<v Speaker 1>Mike Dubuski, ABC News Technology reporter with us this morning.

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<v Speaker 2>It is a Tech Tuesday. Good morning, Mike.

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<v Speaker 3>Good morning, Happy tech Tuesday.

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<v Speaker 2>Yeah, I'm always a pleasure. Okay. A story about Apple,

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<v Speaker 2>and when Apple.

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<v Speaker 1>Invests, it's generally not forty six dollars, it's some big dollars.

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<v Speaker 2>And in this case, five billion dollars.

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<v Speaker 3>What's that about, Yeah, half a trillion dollars. You're absolutely

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<v Speaker 3>right that Apple is not making investments to the tune

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<v Speaker 3>of like scratch off cards or anything like that. These

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<v Speaker 3>are high dollar investments, specifically in American tech infrastructure, and

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<v Speaker 3>what that essentially means is that they are in part

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<v Speaker 3>building actual infrastructure. They are building a factory in Texas

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<v Speaker 3>that is designed to make AI servers, they say. But

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<v Speaker 3>they're also going to go on a hiring spree. They

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<v Speaker 3>plan to hire about twenty thousand new employees over the

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<v Speaker 3>course of the next four years. Those employees are going

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<v Speaker 3>to be focused on research and development, silicon investing, and

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<v Speaker 3>of course, artificial intelligence, which is exactly what this is

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<v Speaker 3>all about. This is a major bet on the future

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<v Speaker 3>of AI. Apple has their own branding for their generative

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<v Speaker 3>artificial intelligence tools called Apple Intelligence This seems to be

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<v Speaker 3>the technology, the sort of back end stuff that's going

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<v Speaker 3>to underpin the future of Apple intelligence.

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<v Speaker 4>Now, when you talk about servers and building servers and

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<v Speaker 4>these huge warehouses, I mean we're talking hundreds of thousands

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<v Speaker 4>of dollars one hundred thousands of square feet jammed full

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<v Speaker 4>of computer gear and takes enormous amount of energy and

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<v Speaker 4>incredible air conditioning systems.

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<v Speaker 2>Are they building those at a rapid rate?

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<v Speaker 1>Because what the Internet is growing, or it was growing astronomically,

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<v Speaker 1>has that slowed down?

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<v Speaker 2>And is that building still going up? That kind of building?

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<v Speaker 3>Yeah, what you're talking about there are data centers which

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<v Speaker 3>are increasingly becoming these really central pieces of the tech

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<v Speaker 3>puzzle in the United States. And what the data center

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<v Speaker 3>is is essentially, like you said, a big building full

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<v Speaker 3>of computer servers, just a big sort of warehouse style thing,

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<v Speaker 3>not many people in, really a security guard, a couple

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<v Speaker 3>of technical officials. But companies came to those buildings and say, hey,

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<v Speaker 3>I want a row of computers or i want this

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<v Speaker 3>little neighborhood of computer servers. I'm going to rent that out.

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<v Speaker 3>And these data center companies basically act as landlords and

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<v Speaker 3>they say, yeah, you can have this for this price,

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<v Speaker 3>and then you get all this computing power. The reason

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<v Speaker 3>for that is because when you open an app on

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<v Speaker 3>your phone or you try to run a program on

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<v Speaker 3>your computer, oftentimes it's not your computer or your phone

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<v Speaker 3>that's actually running that technology. They're offloading some of that

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<v Speaker 3>work to these data centers, in part because the programs

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<v Speaker 3>that we rely on every day are just so computer intensive,

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<v Speaker 3>just so energy intensive. So that's why these data centers

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<v Speaker 3>are important and are actual Intelvince generative. AI is very

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<v Speaker 3>computer intensive to a degree that we really have before

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<v Speaker 3>with other existing technologies. So these data centers are becoming

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<v Speaker 3>really important. And with Apple's five hundred billion dollar investment,

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<v Speaker 3>part of that money is going to this factory to

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<v Speaker 3>build these AI servers in partnership with this Taiwanese firm

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<v Speaker 3>called fox Con. These are the servers that are going

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<v Speaker 3>to go into data centers that are springing up across

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<v Speaker 3>the country. So that's kind of the idea here. Some

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<v Speaker 3>of these data centers are owned and operated by companies

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<v Speaker 3>Whole Cloths, Apple, Microsoft, Google all have their own, but

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<v Speaker 3>there's also like third party data centers that are kind

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<v Speaker 3>of like the landlords, right. They offer the energy they

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<v Speaker 3>offer the air conditioning, and then you as the tech company,

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<v Speaker 3>go in and place your own computers kind of where

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<v Speaker 3>you want them. So the really interesting piece of the

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<v Speaker 3>sort of back end of the American tech infrastructure, and

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<v Speaker 3>one that clearly is coming into clear focus with Apples

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<v Speaker 3>half a trillion dollar investment and also similar investments from

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<v Speaker 3>companies like open Ai.

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<v Speaker 1>All right, so Apple, Well I'll talk about Amazon in

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<v Speaker 1>a minute, because that's our next segment.

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<v Speaker 2>But when you tech about these.

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<v Speaker 1>Data centers, is it like a clearing house of information,

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<v Speaker 1>much like you have a clearing house of banking. The

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<v Speaker 1>Swift system where everybody comes together and then the money

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<v Speaker 1>flows out under Swift is the same thing happening here.

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<v Speaker 3>So it depends, right, It depends on what the data

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<v Speaker 3>center is used for. As we said, some companies own

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<v Speaker 3>their own use them for the purposes. For example, some

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<v Speaker 3>data centers might be just used for cloud computing at Google, right,

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<v Speaker 3>they might be used to underpin Google Drive. Similarly, Apple

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<v Speaker 3>might use the data center to underpin iCloud or Apple

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<v Speaker 3>Intelligence or some combination of the technologies that need all

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<v Speaker 3>of this energy.

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<v Speaker 1>Really depends how big a how big a system is

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<v Speaker 1>this because we don't hear much about this.

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<v Speaker 2>Is this one of those zillion dollar industries.

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<v Speaker 3>Yeah, it's huge and it's growing. And in fact, I

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<v Speaker 3>visited a data center that was bringing up in Orangeburg,

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<v Speaker 3>New York, which is about a half an hour north

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<v Speaker 3>of New York City, in the fall, and it was,

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<v Speaker 3>you know, under construction at the time. They were investing

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<v Speaker 3>you know, several hundred million dollars in this facility as

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<v Speaker 3>a company called Data Bank that was spinning this up,

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<v Speaker 3>and it was set to open at about two months.

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<v Speaker 3>And I got to say, when I was walking around,

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<v Speaker 3>you believed that, you know, it's like these things are

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<v Speaker 3>getting a lot of attention, a lot of construction power

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<v Speaker 3>is going into these sort of facilities. As I said,

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<v Speaker 3>they're just basically big warehouses that you know, you put

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<v Speaker 3>computers in, not a ton of people. You need the

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<v Speaker 3>staff to run them. But there's another concern that comes

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<v Speaker 3>along with all this technology, which is energy consumption. Right,

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<v Speaker 3>because one, you need energy, need electricity to pull from

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<v Speaker 3>the grid to run the computers in your service, but

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<v Speaker 3>you also need to run air conditioning and cooling units

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<v Speaker 3>to keep those computers cool and to keep them functioning.

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<v Speaker 3>So they are big draws on the energy grid, and

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<v Speaker 3>that is something that we haven't really reckoned with yet.

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<v Speaker 3>We haven't really figured out a solution to making the

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<v Speaker 3>things climate friendly and environmentally friendly. You can imagine as

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<v Speaker 3>AI spins up and becomes more prominent, that is going

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<v Speaker 3>to become an increasing concern.

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<v Speaker 1>All right, I want to go back for a moment

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<v Speaker 1>to Amazon, the Amazon story where you reported that Amazon

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<v Speaker 1>is going to hire twenty thousand new employees regarding that

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<v Speaker 1>huge AI tech investment. Now, Amazon had a whole bunch

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<v Speaker 1>of layoffs, and I don't know how many are those

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<v Speaker 1>people going to go back to work, and how.

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<v Speaker 2>Does that connect with twenty thousand new employees.

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<v Speaker 3>That's a very good question. I'm not sure, but they

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<v Speaker 3>certainly are spinning up a whole new slate of technologies,

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<v Speaker 3>and that is kind of what you know they are

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<v Speaker 3>touting this week. There's this big event in New York

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<v Speaker 3>City scheduled for tomorrow. It's expected to be an event

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<v Speaker 3>all about Alexa, which is, of course Amazon's very popular

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<v Speaker 3>voice assistant. Back in twenty twenty three, Amazon said that

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<v Speaker 3>they were going to make this revamp of Alexa toy

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<v Speaker 3>kind of fallen behind some competitors like Google Assistant that

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<v Speaker 3>are out there just in terms of functionality and ease

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<v Speaker 3>of use in what have you. And Amazon says that

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<v Speaker 3>by adding generative artificial intelligence to this technology, it's going

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<v Speaker 3>to get a lot easier to use, and you can

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<v Speaker 3>imagine that is going to have a lot of people

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<v Speaker 3>on the back end working to make sure that this

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<v Speaker 3>technology doesn't go awry as we've seen it in the past.

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<v Speaker 3>You know, these generative artificial intelligence models often make things up,

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<v Speaker 3>they hallucinate, they get things wrong, and that requires sort

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<v Speaker 3>of moderation teams and engineering teams to be on call

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<v Speaker 3>in order to figure that out. We're going to get

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<v Speaker 3>a better look at it tomorrow to see if that

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<v Speaker 3>actually plays in the real world the way that Amazon

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<v Speaker 3>wants it to. I think there's a lot of risk here,

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<v Speaker 3>especially when you consider the sort of unreliability of some

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<v Speaker 3>of these AI systems, but that is what they say

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<v Speaker 3>is going to make this voice a system a lot

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<v Speaker 3>more competitive going forward.

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<v Speaker 1>All right, And what I normally do whenever we talk

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<v Speaker 1>about a Lex is I refer to those of you

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<v Speaker 1>that are listening who have an Alexa in your house

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<v Speaker 1>and you have kids asleep.

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<v Speaker 2>Alexa Louder louder.

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<v Speaker 3>Yeah, yeah, exactly. You got to give the disclaimer every

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<v Speaker 3>time you do a voice assistant segment. You know, I'm sorry.

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<v Speaker 3>We've we've lit up all the Alexa devices around southern

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<v Speaker 3>California this morning.

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<v Speaker 2>Yeh's lovely. I love it. I love it. Hey.

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<v Speaker 1>In terms of the new technology, it's I have friends,

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<v Speaker 1>my daughter as a matter of fact, and my daughter's

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<v Speaker 1>roommate who had a great job at Amazon.

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<v Speaker 2>She lost her job.

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<v Speaker 1>Not my daughter, but the roommate lost her job and

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<v Speaker 1>is a very skilled computer person. That goes right into

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<v Speaker 1>if you somehow are moving into the computer engineering in

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<v Speaker 1>the world of AI.

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<v Speaker 2>How hot a market is that?

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<v Speaker 1>Is that the way you remember it used to be,

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<v Speaker 1>where if you had any kind of computer skills, you

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<v Speaker 1>could walk across the street for a ton more money

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<v Speaker 1>and then walk back for even more money.

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<v Speaker 2>Is that what we're seeing in the AI world?

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<v Speaker 3>Certainly what you were seeing for a few months right,

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<v Speaker 3>Like the tech world has gone through several hype cycles lately,

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<v Speaker 3>they've been trying to figure out what the next big

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<v Speaker 3>thing is going to be. Of course, if you remember

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<v Speaker 3>a few years ago, everybody was talking about the metaverse,

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<v Speaker 3>this sort of virtual world that we would all exist

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<v Speaker 3>in something that Facebook and Instagram really put a lot

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<v Speaker 3>of effort into, and the sort of long tail of

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<v Speaker 3>that didn't really go anywhere. Crypto was sort of the

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<v Speaker 3>next big hype cycle that people got excited about, and

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<v Speaker 3>obviously that market crashed as well. Now everybody's talking about

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<v Speaker 3>artificial intelligence. So it's not enough to just be a

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<v Speaker 3>computer engineer. You kind of got to specialize in one thing,

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<v Speaker 3>and you've got to make a bet that your specific

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<v Speaker 3>specialization is going to be the thing that hits. Certainly,

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<v Speaker 3>with these investments that we've been talking about from Apple

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<v Speaker 3>and from open ai and from others, it certainly seems

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<v Speaker 3>like a lot of the tech industry is sort of

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<v Speaker 3>centering itself around this artificial intelligence revolution. But we've also

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<v Speaker 3>seen some reasons to be skeptical about the long you know,

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<v Speaker 3>the sort of ongoing success of this particular industry. The

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<v Speaker 3>emergence of deep Seek, the Chinese artificial intelligence company that

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<v Speaker 3>was able to develop this very competitive model for a

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<v Speaker 3>fraction of the cost of what American models were able

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<v Speaker 3>to offer, really did kind of raise some eyebrows in

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<v Speaker 3>the investing class. I think a big indicator Bill is

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<v Speaker 3>going to be tomorrow when Nvidia reports its earnings. They

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<v Speaker 3>are the chip manufacturer that makes the technology that underpins

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<v Speaker 3>a lot of these models used by open Ai and

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<v Speaker 3>Google and others.

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<v Speaker 2>Now, my daughter showed me, my tech daughter showed me.

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<v Speaker 1>A picture of the first quantum chip that came out,

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<v Speaker 1>and I didn't really understand that, And I want to

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<v Speaker 1>know how much can this pop be cost?

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<v Speaker 2>Do you have any information on that?

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<v Speaker 3>Well, quantum computing has been around for a little while

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<v Speaker 3>as this sort of idea that the you know, that

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<v Speaker 3>our computers will somehow change and work differently on the

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<v Speaker 3>back end. This is mostly an internal you know question, right,

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<v Speaker 3>we're talking about chips and we're talking about processors. From

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<v Speaker 3>a user perspective, you know, it's sort of questionable exactly

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<v Speaker 3>what the change will be. But you're right to say that. Recently,

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<v Speaker 3>Microsoft did show off what they call the first quantum

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<v Speaker 3>computing chip. In terms of cost, I'm not sure off

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<v Speaker 3>the top of my head, but you can imagine it's

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<v Speaker 3>going to be quite pricey, given that this is just

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<v Speaker 3>a prototype, sort of experimental technology at this point. But yeah,

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<v Speaker 3>that's something to keep an eye on. In the background.

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<v Speaker 3>This is something that we've been talking about for several

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<v Speaker 3>years now. Not everyone has been able to get it

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<v Speaker 3>to work just right, these sort of hyper efficient computers,

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<v Speaker 3>but it is certainly something that Microsoft thinks that it's

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<v Speaker 3>gotten a little bit closer to. I think what's going

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<v Speaker 3>to be really interesting to watch is whether that actually

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<v Speaker 3>shows up in the real world, how they implement this

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<v Speaker 3>in a technology that you or I could use.

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<v Speaker 1>Thank you, and I want to end with Alexa, what

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<v Speaker 1>does the fire engine sound like?

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<v Speaker 3>And good morning to everyone in the immediate Los Angeles area.

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<v Speaker 2>Thanks Mike, always appreciated