Baker compares running GPU clusters to the operational complexity of building $50 billion retail chains.
“And people think, oh, that can't be a durable competitive advantage. Well, I was a retail analyst in the year 2005, and I observed all you had to do to create a $50,000,000,000 market cap retailer in America in any category was be able to run 1,000 stores in 50 states”
Baker compared AI ownership rights to owning dangerous tools, contrasting with Jensen Huang's nuclear analogy.
“ He compared it to the right to own a dangerous tool, while Jensen Huang's line does the opposite work for the nuclear analogy: ”
Baker compares bearish AI economic predictions to being bearish on oil at five hundred dollars per barrel when the premise is factually wrong.
“It's saying I'm very bearish on the world economy because oil is at $500 a barrel. If oil was at $500 a barrel, that'd be a good reason to be bearish. It's just not. They're just wrong. The central fact is wrong.”