Hurting our chances to win the AI war against China later in the show. And for now, joining us, Satori Fund management founder, Dan Niles.
The top player in America and China, they are ready, racing for dominance. And even as the American public sort of hides and simply covers here, in effect, the American government AI rollout that's going to bring artificial intelligence directly to the masses, there's a sort of counterbalance. The overall, overarching problem here is that political tug-of-war going on right now. And how does all of this inform you as an investor?
I mean, at the end of the day, my goal is just to make money, right? And so it is going to be what is the perception that moves the stocks in that short term, and what is your opportunity in the long term. Perception versus reality. Right now it is sad to see how many people are, you know, focused on this idea of a 10 percent chance that wipes out all of humanity. And quite honestly, I just look at that as leading companies trying to put so many regulations on that they end up with the duopoly between OpenAI and Anthropic, and so use scare tactics so you get that to be the ultimate state. And it is working, unfortunately.
That combined with some genuine concerns there. From just like, you know, you remember during the Cold War, somebody pushes a button by accident and launches a nuclear weapon. I'm like, yes, that can happen. Just like getting on an airplane and it could crash. The odds are pretty low. You load up, go on and live your life, and I think that is where AI is.
To the point I was going to say, Anthropic, OpenAI, and you're looking at all of this until Grok, if you will, that has been harvested, and you see these new, you know, products popping up and open source stuff. You've got to wonder, I mean, OpenAI just brings in another big-time money and over trillion-dollar valuation. But do you worry about their dominance because they've made a lot of commitments, financial commitments along the way?
Well, yes, and I've said this multiple times on your show, Charles, but every one of these companies will play out like anything back to the internet and to where we are today. How many winners do you have coming up? One Google, but without any competition really going on. What was best for me is really only one Netflix. Where technology is one of those markets where it's winner-take-most.
I think that with AI, the way I view it is that ultimately, five years from now, it is probably going to be three dominant companies. Microsoft, I think, wins because of what you just said, which is the scare tactics going on, and the lesson corporations are ultimately going to go, you know what, I have Microsoft 365 and I have Copilot. I'm just going to check that box that says that I am going to have AI on that as well, and I know that it is safe and Microsoft will protect me. That is what the corporations will ultimately end up doing.
On the consumer side, what will happen is that you have two ecosystems. You will have the Apple ecosystem where you're going to pick up your phone and you're going to say, hey, give me a flight to go see Charles Payne in New York, and book me a hotel, and give me a car, and inform me what my flight schedule is, and I won't even care what model it is accessing underneath. The people that are on Android, well, Android is the operating system from Google, and so using a Samsung phone or whatever, it will be the same thing. You won't even know what is going on underneath the covers. And so I think that's where it comes down to: Microsoft, enterprise, and Google and Apple in the consumer.
We started this off saying that you have to look at this through two lenses, right? Because there is hype factor. Sometimes it is good, you know, like rates are going to take off and all the three died in a rate cycle, and then suddenly they fall the other way. Spending. Sometimes it is negative, you know, in the case, for instance, let's talk about Palantir. It's been dominant for the last several months, and then it pulled back on Saturday. And you get Microsoft and C5 just making a rocket ship out of here. And so at a seven, do you buy the story or do you just ride it out?
Well, I mean, we wrote about C5 and Meta at the beginning of the month or so, and it was down 7 percent. And I said, we know they have the CPI coming out for, you know, corporations, and I said I think that Meta will show strength in the next week. Obviously, their agent came out for the consumers and the stock really rocketed. For Microsoft, the problem is now that everybody has OpenAI development day going on right now as we speak, launching their own knockoff, and you see Google with their Microsoft knockoff, basically becoming a going concern without them. And who is the ultimate market share winner? At the end, we don't talk about AOL today, we're not talking about Yahoo today, we're talking about Google and the other companies as the outcome.
I think that the problem that Meta will run into eventually is that right now it is number one on the store, but I think, as I said earlier, ultimately we will be asking our smartphone to do these things. We won't know if it's running Meta, Microsoft, Google, or whatever the agent is. Our phones will be picking whatever one they think is most appropriate for the task, and I think that is the ultimate winner. So Meta has had a monster move, and it should have. Well, it was underground and underappreciated. Zuckerberg, as you brought up earlier, is fantastic about paying for talent, and he will get to do whatever he needs to do. And I think he is probably the best CEO at doing that of anyone. He got WhatsApp and Instagram, and people thought that was crazy. But that is where we are today.
