What's your overall take on the entire category currently, and then what's the growth opportunities?

Yeah, we believe that smart glasses is going to be the next most important interface for humankind.

Because if you look back in the history, it's all about how to take personal compute into a more mobile and more convenient form factor, right? Coming from PC to laptop and to now smart glasses.

But the dilemma people had before is, When you want to make your personal computer more mobile, you also lose functionality, right? The screen gets smaller, it gets less functionality, so you have to live with that.

So that's why people ended up with a full spectrum of different devices, right? You want your phone, you want your laptop, and then in the middle, you probably also want your iPad, right? So that you have like all the sizes.

But like smart glasses is the only chance where we can have the personal compute even more convenient than your phone, but then you have the content, have the display even bigger than your phone, right? So that's where we see this opportunity, where we get personal compute more mobile and more functional Also, very importantly, if you want to make this product work, you need to look nice.

You need to feel nice, right? You need to look handsome on your face, Michael, and also on mine.

Is it a generation away? What's that paradigm shift?

What's your overall take on the entire category currently, and then what's the growth opportunities?

Yeah, we believe that smart glasses is going to be the next most important interface for humankind.

Because if you look back in history, it's all about how to take personal compute into a more mobile and more convenient form factor, right? Coming from PC to laptop and to now smart glasses.

But the dilemma people had before is, When you want to make your personal computer more mobile, you also lose functionality, right? The screen gets smaller, it gets less functionality, so you have to live with that.

So that's why people ended up with a full spectrum of different devices, right? You want your phone, you want your laptop, and then in the middle, you probably also want your iPad, right? So that you have like all the sizes.

But like smart glasses is the only chance where we can have the personal compute even more convenient than your phone, but then you have the content, have the display even bigger than your phone, right? So that's where we see this opportunity, where we get personal compute more mobile and more functional Also, very importantly, if you want to make this product work, you need to look nice.

You need to feel nice, right? You need to look handsome on your face, Michael, and also on mine.

Is it a generation away? What's that paradigm shift?

Yeah.

Right? Because they know that innovating with Apple have huge returns, have huge paybacks.

That's also the, the, the really rewarding dynamics I've seen, which I, I don't see it between those Chinese vendors and the Chinese manufact- uh, Chinese brands, cell phone brands, unfortunately.

Because it all comes down to the business model, right? If you're innovating, if you're selling at a premium, you have the margin, so then you, you can invest, you can allow your suppliers to make a higher margin, uh, of the profit, right? So that they can in return invest into making the next generation, right, innovating with you.

Because they know that, okay, innovating with you, although it's hard, it's actually come out- comes out with the highest margin, right? But like with a lot of the Chinese brand, like, uh, Huawei, Xiaomi, OPPO, or these brands, it's always about undercutting the price.

It's always about squeezing the suppliers.

So then no suppliers-

Mm-hmm.

Do you think China can catch up? Do you think China can eventually become the global leader in AI, or do you think that is something that the US is still likely to, to dominate?

I would say 50/50.

I kind of feel like US has its edge on the frontier researchers, on the theories.

It's really ahead.

But in China, the energy and infrastructure, 'cause like Jensen Huang always says this, like model or AI is, he says it's a five-layer cake, right? It's not only about research or the model, it's also about infrastructure, energy, all that kind of stuff.

How desperately do you need those state-of-the-art NVIDIA chips?

Yeah.

For us, not so much because a lot of s- our stuff is, uh, deployed on the cloud, and we're selling, selling globally, so we're all using a lot of those cloud resources from, from Google, from Amazon, from Microsoft.