【TMGM Financial Recap】Halfway Through Jensen Huang's Speech, Trump Called, Declaring That "The AI Doomsday Theory Is A Scam."

Trump's statements during the call left no room for ambiguity. He said, "This whole thing is a scam. Data centers are great; they make people rich and states rich. They are the oil for the next 20 to 25 years, much bigger than the internet." He asserted, "Robots will not rule the world, AI will not take over the world," and criticized voices opposing data center construction as "serving those who do not want America to succeed, possibly politicians or China." He also presented a set of comparison figures: currently about $20 trillion in investment is flowing into the U.S., compared to less than $1 trillion under the previous administration.

Jensen Huang responded on the spot: "You're right, we won't let (AI slow down) happen, sir." After the call, he added to the audience: With polls showing opposition dominating, Trump was able to "see through this scam" and stand his ground, "It takes courage."

Over the past week, the AI industry has faced the most intense debate in history over security risks: Anthropic CEO Amodei posted a call for the industry to slow down cutting-edge model development, with Altman and Elon Musk echoing the agreement, and for the first time, the three labs stood on the same side; Meanwhile, the president and the world's largest AI computing power supplier gave opposite directions through a live call.

The White House Brought The Debate To The Forefront

Trump chose to intervene in the middle of Jensen Huang's speech, hands-free on site, rather than making a statement through social media. This approach itself was a statement, and in front of thousands of tech industry professionals and investors, he directly sided with the "anti-slowdown" camp.

During the call, he addressed a pain point that had been rarely publicly emphasized: in some regions, excessive power and land approvals have forced tech giants to relocate large-scale data centers to places like Finland, "which is very passive in industrial competition." This is consistent with his call to Jensen Huang last week and his public support for data centers, but he shifted the focus from "excessive regulation" to "inefficient approvals." He also offered a reassuring statement: "We must be careful, we must act prudently, but this does not mean we will stop an industry...... I fully support you. ”

Before the call, Trump had already posted on social media that day, naming and attacking Amodei personally, calling AI security concerns a "scam" and "fraud," opposing AI and data centers a "pathological conspiracy," and wrote that the only safeguard AI needs is "a strong and intelligent (high IQ!) ) president." A head of state publicly named the CEO of a company preparing for an IPO, an unprecedented move in American tech history.

Jensen Huang's Reasoning Is Quite Strong

He compared the most widely circulated AI predictions in recent years with reality: "Some predict that AI will completely replace radiologists within five years, but the reality is quite the opposite—we need radiologists more than ever." "Some predict that 90% of code will be generated by AI within 6 to 12 months, but that's wrong. Others predict that 50% of entry-level jobs will disappear within 6 to 9 months, but that's also wrong." He also named unfulfilled claims that GPT-2 and Llama 3 were once considered "too dangerous to be released" and that "half of white-collar jobs will disappear next year."

His conclusion was straightforward: "These predictions are not based on science, nor on research. All evidence based on science and research points in the opposite direction. This is fear of the unknown." Regarding Amodai's article that sparked this round of debate, his assessment was equally sharp: "Something spoken by scientists but not scientific is irresponsible." 

A more technical layer is his breakdown of "Recursive Self-Improvement" (RSI), which is the most unsettling concept in Amodai's lengthy article and the core controversy surrounding the resignation of Anthropic researcher Coxon. Jensen Huang's judgment is: RSI "is not black magic," but rather a combination of existing methods such as contextual learning, skill accumulation, reflection mechanisms, reinforcement learning, and synthetic data generation; By efficiently fine-tuning parameters like LoRA, capabilities can be enhanced without retraining foundational models, and accumulated experience can be used to feed the next-generation foundational model, making "the entire process completely controllable in engineering." His core argument is: any model must be evaluated, tested, and confirmed for no regression before being publicly released; "the basic engineering control process is already there." He believes the term is being "weaponized," creating the illusion of a "runaway spiral."

The capital markets' reaction was almost immediate. At the same time as the summit took place, US stocks were in a wave of AI hardware sell-offs: on Monday, the Philadelphia Semiconductor Index closed down 5.86%, marking its largest drop since July 1; Optical communications and storage sectors led the declines, with Corning down over 9%, while Micron and ARM fell over 7%. But at Tuesday's open, the semiconductor sector rebounded collectively: Nvidia rose 0.91%, SK Hynix rose over 2%, ASML rose 1.67%, and Intel gained 1.62%. The president's public endorsement, combined with ASML's announcement of capacity expansion to exceed 110 EUV units by 2028, provided the side with the most direct ammunition for those who "AI demand has not slowed."

But another pillar supporting this AI rally is loosening. On the same day the call occurred, the 10-year U.S. Treasury yield rose intraday to 5%, hitting a new high since 2007; In the early hours of Thursday Beijing time, the Federal Reserve will announce its September rate decision, with a rate hike probability close to 90%. In other words, no matter how strong the political backing of AI narratives is, it cannot avoid the pricing environment of "interest rates still rising." Chip stocks rebounded today and will still face the test of the decision tomorrow.