Expect a drive towards efficiencies in AI in 2026, says Chris Kelly - part 1/2
December 23, 2025 • 5m 26s
Andrew Ross Sorkin (Anchor)
00:00.150
AI
and
tech
players
vying
for
dominance
in
the
new
year
may
pursue
consolidation
in
the
industry
joining
us
right
now
is
chris
kelly
founder
of
kelly
investments
and
former
general
counsel
and
chief
privacy
officer
for
facebook
what
do
Chris Kelly (Founder)
00:13.950
you
and
a
happy
christmas
Andrew Ross Sorkin (Anchor)
00:16.550
adam
Andrew Ross Sorkin (Anchor)
00:18.790
exactly
you
you
did
you
know
that
beforehand
about
Chris Kelly (Founder)
00:22.150
this
i
did
not
know
that
beforehand
but
i've
learned
a
lot
this
morning
Andrew Ross Sorkin (Anchor)
00:26.480
you
know
news
you
can
use
my
friend
news
you
can
use
so
help
us
understand
how
you
see
twenty
twenty
six
play
out
in
this
AI
space
and
especially
among
some
of
these
large
language
model
providers
so
Chris Kelly (Founder)
00:38.240
there's
going
to
continue
to
be
a
war
for
talent
among
the
biggest
players
and
there
will
probably
be
some
new
ones
who
come
to
the
fore
but
more
than
anything
else
there's
going
to
be
a
drive
towards
some
efficiencies
instead
of
just
you
know
constantly
building
more
data
Chris Kelly (Founder)
00:55.480
centers
and
more
GPU
's
all
the
time
that
that
obviously
the
the
amount
that
it
takes
to
train
a
new
model
is
an
immense
amount
of
of
resources
in
terms
of
dollars
in
terms
of
GPU
's
in
terms
of
power
but
i
think
that
there's
going
to
be
a
lot
of
companies
that
turn
hard
towards
Chris Kelly (Founder)
01:12.760
how
do
we
do
this
more
efficiently
and
effectively
and
one
of
the
most
interesting
approaches
that's
going
to
be
the
out
there
is
thinking
about
how
the
human
brain
reasons
and
modeling
that
better
i
mean
we
were
running
our
brains
on
twenty
watts
we
don't
need
gigawatt
power
Chris Kelly (Founder)
01:27.790
centers
to
to
reason
and
i
think
that
that
finding
efficiency
is
going
to
be
one
of
the
key
things
that
that
the
big
AI
players
look
to
Andrew Ross Sorkin (Anchor)
01:37.930
is
there
anybody
who
you
think
either
drops
out
of
the
game
or
or
fundamentally
changes
how
they're
doing
this
i
mean
there
is
a
big
question
about
whether
you
think
all
of
these
models
get
commoditized
especially
if
you
think
some
of
the
open
source
stuff
either
coming
out
of
Andrew Ross Sorkin (Anchor)
01:51.490
china
or
elsewhere
really
actually
takes
you
know
catches
fire
because
it
sort
of
could
undermine
what
some
of
the
other
folks
are
doing
Chris Kelly (Founder)
02:00.790
i
mean
i
think
there
will
be
a
number
of
open
source
players
most
probably
my
former
colleagues
at
meta
who
you
know
have
the
llama
models
out
there
and
mark
has
invested
quite
extensively
in
building
you
know
a
new
team
a
bigger
team
to
focus
on
this
i
i
do
think
that
you'll
Chris Kelly (Founder)
02:17.470
see
a
number
of
chinese
players
come
to
the
fore
that
that
especially
if
the
nvidia
GPU
's
that
are
said
to
be
being
sold
to
china
and
now
you'll
come
online
Andrew Ross Sorkin (Anchor)
02:29.460
and
and
when
you
think
about
winners
and
losers
are
you
of
the
view
we're
in
some
kind
of
bubble
are
you
of
the
view
that
it's
all
going
to
be
fine
are
you
of
the
view
that
this
is
just
Chris Kelly (Founder)
02:38.420
the
beginning
both
both
is
the
way
that
i
would
put
it
i
mean
i
think
that
there
is
a
bit
of
a
bubble
around
hey
we've
got
to
have
this
constant
upward
spiral
of
more
GPU
's
more
power
consumption
more
data
centers
i
think
that
that
drive
towards
efficiency
is
going
to
be
very
Chris Kelly (Founder)
02:55.300
real
and
those
who
kind
of
strike
a
breakthroughs
in
this
area
area
will
will
come
to
the
fore
and
i
think
that
some
of
the
bigger
players
will
end
up
acquiring
smaller
players
that
do
that
breakthrough
and
then
i
do
think
that
you'll
see
open
source
models
both
out
of
the
china
Chris Kelly (Founder)
03:08.710
china
and
the
US
and
some
out
of
europe
too
but
mainly
out
of
china
and
the
US
will
will
provide
people
you
know
basic
levels
of
of
compute
and
and
access
for
for
generative
and
agentic
analysis
Andrew Ross Sorkin (Anchor)
03:22.780
what
is
the
chance
we
see
in
this
regulatory
environment
a
major
transaction
now
open
AI
may
be
too
big
i
don't
i
don't
know
where
you
think
the
valuation
lands
for
an
anthropic
for
example
which
obviously
has
stakes
in
it
or
or
ownership
stakes
by
people
including
google
and
Andrew Ross Sorkin (Anchor)
03:38.620
amazon
and
now
i
believe
microsoft
as
well
could
could
you
see
a
company
try
to
take
out
one
of
the
big
large
language
models
i
mean
the
other
piece
of
this
is
apple
is
not
really
in
the
game
way
i
think
they
want
to
be
exactly
Chris Kelly (Founder)
03:54.590
and
they
have
an
incredible
cash
forward
to
deploy
and
and
obviously
an
acquisition
currency
in
their
stock
that
works
pretty
well
as
well
so
i
do
think
that
you'll
see
some
some
you
know
some
big
deals
in
the
space
particularly
as
some
of
these
more
efficient
players
come
to
Chris Kelly (Founder)
04:10.190
the
fore
if
you
can
take
the
an
operating
essentially
an
operating
system
that
you
have
going
on
with
your
LLM
's
and
think
about
how
to
make
that
a
lot
more
effective
inefficient
on
all
the
the
classic
you
know
tests
and
coefficients
about
reasoning
to
get
to
applied
general
Chris Kelly (Founder)
04:29.750
intelligence
everyone
's
going
to
take
the
opportunity
to
do
that
and
to
the
sense
that
they
have
both
cash
forwards
and
obviously
incredibly
valuable
stock
to
deploy
i
do
think
you'll
see
a
few
big
deals
in
this
space
but
Andrew Ross Sorkin (Anchor)
04:42.550
how
big
are
we
talking
i
mean
so
i
would
say
anthropic
would
be
you
know
potentially
hundreds
of
billions
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