Tech CEOs meet with Indian PM Modi: Here's what to know

Summary

Prime Minister Narendra Modi met with tech executives like Jensen Huang and Sundar Pichai, discussing India's potential in AI and tech investment. Modi's tech-savvy approach and India's large workforce attract companies. IBM's Krishna highlighted geopolitical cooperation and committed $20 million investment. Bio-tech discussions also took place. Concerns were raised about the CHIPS Act funding and potential foreign takeovers, emphasizing the need for competition to drive AI economics.

Takeaways

• 📉 The Dow is down 8 points, while the Nasdaq is up 42, reflecting a strong week for the three averages.
• 🤝 Indian Prime Minister Narendra Modi is meeting with top tech executives like Jensen Huang, Sundar Pichai, and Julie Sweet ahead of the U.N. General Assembly.
• 🌟 Tech companies, including Apple and Google, view India as a prime area for investment due to its large workforce.
• 🇮🇳 Jensen Huang praised Modi for his understanding of AI and his role in explaining AI to him, highlighting India's potential in the tech sector.
• 🚀 NVIDIA has been in India for 25 years with almost 10,000 engineers, emphasizing the company's long-standing commitment to the country.
• 💼 IBM's Krishna discussed the importance of cooperation with India for national security and economic benefits, committing to invest $20 million in India.
• 💊 Discussions were held with pharmacy CEOs on biotech and protections for U.S. companies operating in India.
• 💼 Steve Kovach questioned Huang about the Intel merger, to which Huang emphasized NVIDIA's control over the full stack of infrastructure.
• 🤔 There's skepticism about the Intel-Qualcomm deal, with concerns about the U.S. government's involvement and the potential for foreign ownership.
• 💵 The CHIPS Act money is seen as a bet on Intel's ability to manufacture chips, which some argue should be left to market competition.
• 🏛️ There's a debate about government involvement in picking winners in the tech industry, with some advocating for companies to drive their own growth and go public.

Q & A

What was the performance of the Dow and Nasdaq at the time of the report?

The Dow was down by 8 points, while the Nasdaq was up by 42 points.

What significant event was happening during the week mentioned in the script?

The U.N. General Assembly was taking place during the week.

Who did Indian Prime Minister Narendra Modi meet with?

Prime Minister Modi met with several tech CEOs including Jensen Huang, Sundar Pichai, and Julie Sweet.

What is India's significance to tech companies like Apple and Google?

Tech companies see India as a prime area due to its large workforce.

What did Jensen Huang praise Prime Minister Modi for?

Jensen Huang praised Prime Minister Modi for understanding the importance of A.I.

How long has NVIDIA been in India and what is its presence there?

NVIDIA has been in India for 25 years with centers in Bangalore and almost 10,000 engineers.

What did Krishna discuss regarding IBM's business in India?

Krishna discussed the geopolitical lens and how cooperation with India strengthens both India and the U.S.

What commitment did Krishna make to India?

Krishna committed to investing $20 million in India.

What discussions were held involving pharmacy CEOs?

Discussions were held on bio-tech and protections for U.S. companies operating in India.

What was Huang's response to the Intel merger?

Huang emphasized NVIDIA's approach to building the full stack of infrastructure, including chips, CPUs, and switches.

What is the potential issue with the CHIPS Act money mentioned in the script?

The potential issue is that the money is intended for an American company, but there's concern that another company might take over and benefit from it.

Outlines

00:00

🌐 Tech Leaders Meet with Indian PM Modi

The script discusses a meeting between Indian Prime Minister Narendra Modi and top tech executives like Jensen Huang of NVIDIA and Sundar Pichai of Alphabet. Modi is praised for his understanding and enthusiasm for AI and technology. The executives highlight India's potential due to its large workforce. Jensen Huang discusses NVIDIA's 25-year presence in India and their 10,000 engineers there. IBM's Krishna speaks on business in India, emphasizing the geopolitical benefits of cooperation between India and the U.S., and commits to a $20 million investment. The conversation also touches on the Intel merger and the importance of competition in the AI space.

05:01

💼 Qualcomm's Expansion and CHIPS Act Concerns

The second paragraph delves into Qualcomm's potential to expand its PC footprint beyond AI, contrasting its mobile-first approach with Intel's struggles. There's a discussion about the CHIPS Act funding and the controversy surrounding it, particularly if the funds are used by a company that may be taken over by another entity. The conversation points out the risks of government involvement in business, the potential for loss of access to technology, and the debate over government picking winners in the tech industry. There's also a mention of regulatory disapproval of such deals and the contrasting views of figures like Lina Khan who prefers companies to go public on their own.

Keywords

💡Prime Minister Narendra Modi

Narendra Modi is the Prime Minister of India. In the context of the video, he is portrayed as a key figure engaging with global tech leaders, showcasing India's growing importance in the tech world. Modi is praised for his understanding of technology, especially artificial intelligence (A.I.), which aligns with India's ambitions to become a global technology hub.

💡Artificial Intelligence (A.I.)

Artificial Intelligence refers to the simulation of human intelligence in machines, enabling them to perform tasks that typically require human cognition. In the video, NVIDIA's CEO Jensen Huang highlights Modi’s early understanding of A.I. and its relevance to India’s technological growth, positioning India as a key player in the global A.I. ecosystem.

💡NVIDIA

NVIDIA is a leading technology company known for its innovations in graphics processing units (GPUs) and artificial intelligence. In the video, its CEO Jensen Huang emphasizes the company's long-standing presence in India, with over 10,000 engineers contributing to various engineering efforts. NVIDIA’s role in shaping the A.I. landscape is highlighted, underscoring the importance of India as a key engineering hub for the company.

💡Bureaucratic red tape

Bureaucratic red tape refers to the complex and often slow-moving administrative processes that can hinder business operations and investments. The video touches on the perception that such challenges exist in India, but Jensen Huang of NVIDIA mentions that his company has not experienced significant issues, reflecting a positive view of India's business environment, especially in the tech sector.

💡Geopolitical lens

The geopolitical lens refers to the analysis of global events and business strategies in the context of international politics and relations between countries. In the video, IBM CEO Arvind Krishna discusses the importance of U.S.-India cooperation through a geopolitical lens, emphasizing that strengthening ties between the two nations can benefit both, particularly in technology and national security.

💡IBM

IBM is a multinational technology company with a significant presence in India. The video highlights IBM's commitment to investing in India, particularly in areas such as artificial intelligence and biotechnology. CEO Arvind Krishna underscores the company’s $20 million investment, illustrating IBM’s long-term view of India as a critical market and partner in the global tech landscape.

💡Chips Act

The Chips Act refers to U.S. legislation aimed at boosting semiconductor manufacturing within the country. In the video, there is a discussion around how companies like Intel might benefit from government support through this act. However, concerns are raised about whether Intel can meet the expectations tied to these funds, reflecting broader questions about government involvement in the tech industry.

💡Jensen Huang

Jensen Huang is the CEO of NVIDIA, one of the world’s leading tech companies in A.I. and semiconductor technology. In the video, Huang is depicted as a visionary leader who praises Prime Minister Modi's understanding of A.I. and discusses NVIDIA's strategic direction in building full-stack infrastructure, emphasizing the company's global role and its reliance on India’s talent pool.

💡Intel merger

The Intel merger refers to the potential business deals or mergers involving Intel, a major semiconductor manufacturer. In the video, Jensen Huang discusses NVIDIA's approach to handling technology mergers, particularly in the context of competition with Intel. The commentary provides insight into industry dynamics, where mergers and acquisitions can reshape the competitive landscape in the semiconductor and A.I. sectors.

💡Full stack infrastructure

Full stack infrastructure refers to a company’s ability to build and control all layers of technology, from hardware (chips, CPUs) to software (algorithms, systems). Jensen Huang mentions this in the context of NVIDIA’s strategy to control both hardware and software components, setting them apart from competitors and positioning them as leaders in the A.I. and semiconductor industries.

Highlights

The Dow is down 8 points, while the NASDAQ is up 42, following a strong week for the three averages.

Indian Prime Minister Narendra Modi met with top tech executives ahead of the U.N. General Assembly.

Tech CEOs such as Jensen Huang, Sundar Pichai, and Julie Sweet were among those present at the meeting.

Tech companies see India as a prime area for investment due to its large workforce.

Jensen Huang praised Modi for his understanding of the importance of AI.

Modi is described as an incredible student who loves technology and AI.

NVIDIA has been in India for 25 years with centers in Bangalore.

NVIDIA employs almost 10,000 engineers in India who do every aspect of engineering.

IBM's presence in India was discussed, with a focus on business operations.

Cooperation with India and the U.S. is seen as strengthening both nations.

Krishna of IBM is committed to investing $20 million in India.

Discussions were held on bio-tech and protections for U.S. companies operating in India.

Huang was asked about the Intel merger and responded by emphasizing NVIDIA's full stack approach.

The conversation touched on the potential implications of the Intel merger for NVIDIA.

The CHIPS Act money is seen as a bet on Intel's ability to manufacture chips.

There is skepticism about the U.S. government's involvement in picking winners in the tech industry.

The current regulation is not favorable towards tech mergers and acquisitions.

There is a debate on whether large investments should come with conditions like warrants.

Transcripts

SQUARE.

THE DOW IS DOWN 8 POINTS.

THE NASDAQ IS UP 42.

WE ARE COMING OFF A STRONG WEEK

FOR THE THREE AVERAGES.

>>> MEANTIME, THE INDIA PRIME

MINISTER MODI MEETING WITH THE

TOP TECH EXECUTIVES.

OUR OWN STEVE KOVACH WAS THERE.

HE JOINS US WITH SOME OF THE

HIGHLIGHTS.

GOOD MORNING, SIR.

>> GOOD MORNING.

LIKE YOU SAID, PRIME MINISTER

NARENDRA MODI MEETING WITH

SEVERAL TECH CEOS ON MONDAY

AHEAD OF THE U.N. GENERAL

ASSEMBLY GOING ON THIS WEEK.

AMONG THOSE WAS JENSEN HUANG AND

SUNDAR PICHAI AND JULIE SWEET.

YOU SEE TECH COMPANIES FROM

APPLE TO GOOGLE SEE INDIA AS A

PRIME AREA WITH THE LARGE WORK

FORCE.

I WAS ABLE TO CATCH UP WITH

HUANG AND KRISHNA.

HUANG PRAISING MODI FOR

UNDERSTANDING THE IMPORTANCE OF

A.I.

>> PRIME MINISTER MODI IS

INSPIRING.

EVERY TIME I'VE SEEN HIM, HE IS

SUCH AN INCREDIBLE STUDENT.

HE LOVES TECHNOLOGY.

HE LOVES ARTIFICIAL

INTELLIGENCE.

HE WAS ONE OF THE FIRST PEOPLE I

EVER EXPLAINED ARTIFICIAL

INTELLIGENCE TO.

THIS IS AN EXTRAORDINARY TIME

FOR HIM AND TIME FOR INDIA

BECAUSE IT'S A RESET OF THE

WHOLE COMPUTING STACK.

>> I ASKED IF HE DISCUSSED WITH

MODI CLEARING UP THE

BUREAUCRATIC RED TAPE THAT SOME

COMPANIES OFTEN COMPLAIN ABOUT

INVESTING IN INDIA.

TAKE A LISTEN.

>> I HAVEN'T EXPERIENCED THAT.

NVIDIA HAS BEEN IN INDIA FOR 25

YEARS.

OUR CENTERS ARE IN BANGALORE.

SOME ALMOST 10,000 NVIDIA

ENGINEERS ARE IN INDIA.

THEY DO EVERY ASPECT OF

ENGINEERING.

THEY HAVE BEEN PART OF OUR

COMPANY SINCE THE VERY, VERY

BEGINNING.

>> ANOTHER COMPANY WITH A

PRESENCE IN INDIVISIBLA IS IBM.

KRISHNA TALKED ABOUT THE

BUSINESS IN INDIA.

TAKE A LISTEN TO WHAT HE SAID

THERE.

>> COMPANIES ARE GOING TO DO

WHAT BENEFITS EACH COUNTRY.

YOU HAVE TO PUT THOSE THINGS A

LITTLE BIT TO THE SIDE AND SAY

IS IT ANY NATIONAL SECURITY

THREAT?

IF YOU LOOK AT THE GEOPOLITICAL

LENS, COOPERATION WITH INDIA AND

THE U.S. IS GOING TO BE

STRENGTHENING BOTH THESE NATIONS

TO THE POINT WHERE THEN YOU CAN

TAKE CARE OF ALL OF THE OTHER

SECONDARY ISSUES.

>> KRISHNA TOLD SEEMA MODY THAT

HE IS COMMITTED TO INVESTING $20

MILLION IN INDIA.

OF COURSE, BECAUSE PHARMACY CEOs

OF ELI LILLY WERE THERE,

DISCUSSIONS WERE HELD ON

BIO-TECH AND PROTECTIONS FOR

U.S. COMPANIES OPERATING IN

INDIA.

JUST AS A KICKER, I ASKED HUANG

ABOUT THE INTEL MERGER ON

FRIDAY.

HERE'S WHAT HE TOLD ME ABOUT

THAT.

>> WE'RE DOING IT OUR WAY, AS

YOU KNOW.

NVIDIA BUILDS THE FULL STACK OF

INFRASTRUCTURE.

WE BUILD EVERYTHING FROM CHIPS

TO THE STACK TO THE CPUs AND

SWITCHES.

WE WRITE AN ENORMOUS AMOUNT OF

SOFTWARE FROM ALGORITHMS AND

SOFTWARE AND SYSTEMS.

WE ARE CONTINUING TO MOVE

FORWARD.

>> I THINK THE IMPLICATION THERE

IS THEY CONTROL WHAT HUANG

CALLED FULL STOACK.

THE SOFTWARE AND HARDWARE PART.

>> STEVE, GOING TO THAT LAST

POINT ABOUT THE DEAL, DO YOU SEE

THE U.S. GOVERNMENT AND DO YOU

SEE -- IS THIS A GOOD DEAL?

IN SOME WAYS -- IF YOU GET

COMPETITION TO NVIDIA, THAT

WOULD BE A GOOD THING.

80% MARGIN IS GREAT FOR NVIDIA

AND JENSEN.

LONG

LONG-TERM, IF YOU WANT A.I. TO

HAVE TRUE ECONOMICS, THAT WILL

HAVE TO BE SLICED IN HALF, IT

NOT MORE SO.

THE ONLY WAY THAT WILL HAPPEN IS

COMPETITION.

THE QUESTION IS DO YOU WANT

COMPETITION BY A COMPANY OWNED

BY TAIWAN OR OUR ALLIES OR

SOMEBODY IN THE U.S.?

>> APRIL NDREW, I WAS LOOKING A

FROM THE PC SIDE.

THIS SUMMER, QUALCOMM PUT OUT

THE FIRST PC CHIPS THAT ARE

GOOD.

ON PAR WITH WHAT YOU SPECIAL.

BASED ON THE SAME TECHNOLOGY

WITH THOSE.

INTEL IS BEHIND ON THAT.

THAT'S WHY APPLE DITCHED INTEL.

THAT'S THE WAY QUALCOMM CAN

EXPAND THE PC FOOTPRINT MORE

THAN THE A.I. WE DON'T KNOW

WHERE IT IS.

QUALCOMM IS NOT NECESSARILY

PRODUCING THE CHIPS.

IT IS A MOBILE FIRST COMPANY.

>> THIS IS LIKE A BACK DOORWAY

OF GETTING CHIPS ACT MONEY.

WHAT COULD POSSIBLY HAPPEN?

I CAN'T IMAGINE PEOPLE IN

WASHINGTON ARE HAPPY WITH THIS.

SURE, NO PROBLEM.

WE'LL CHANGE THE NAME ON THE

CHECK WE'RE WRITING.

IT'S TAXPAYER DOLLARS.

>> THE CHIPS ACT MONEY IS A BET

ON THE PART OF THE BUSINESS THAT

INTEL HASN'T PROVEN IT CAN DO.

THE MAKING OF THE CHIPS.

>> THE IDEA TO SAY WE'RE DOING

THIS FOR AN AMERICAN COMPANY AND

AMERICAN TAX DOLLARS AND YYOU

PROMISED THIS AND SOME OTHER

COMPANY IS TAKING IT OVER FOR

THIS.

STILL, IT SEEMS LIKE THIS IS THE

PROBLEM WITH GOVERNMENTS REALLY

GETTING INVOLVED IN PICKING

WINNERS ON THIS STUFF.

YOU LOSE ACCESS.

>> WE KNOW THAT THE CURRENT

REGUL

REGULATION DOESN'T LIKE THESE

DEALS.

I KNOW YOU WERE TALKING ABOUT

LINA KHAN EARLIER.

SHE LIKES TO SEE THE COMPANIES

DRIVE ON THEIR OWN AND GO

PUBLIC.

I CAN SEE THAT ARGUMENT MADE.

IT IS PRELIMINARY.

>> I CAN UNDERSTAND IF YOU WANT

TO PUT A $5 BILLION INVESTMENT

IN IT, THAT WOULD BE LIKE A BIG

DEAL LIKE A WARREN BUFFETT THING

WHERE YOU GET WARRANTS

ALONGSIDE.

TO COME IN AND TAKE OVER AND DO

IT?

>> AND ACCEPT THAT MONEY AND ALL

THE STRINGS THAT COME ALONG WI