Thomas von Tschammer: recommendation

Transcript context

…Maybe another way to think about this is how much is it worth? You talked about like value pricing earlier. And there's so much discourse right now around Are people going to be willing to pay for Mythos class models? Notably, the price originally previewed with Mythos has already come down a lot with Fable being significantly less than that original Mythos preview price. I'm not sure how often it is the case that these insights are like readily quantifiable in terms of money. So because it could be a little bit more efficient, that moves the needle on my range. I can say now my car gets this many miles on a charge where it used to be only this many. How much is that worth in the market? Obviously a whole other question. So how are people assessing the value of the, especially the, you speak to all aspects of it, including the smaller optimizations, but really interested in these sort of move the small scale or move 37 light type moments. How much value do people perceive in it? Are they able to measure it? Are they willing to pay? Are we going to see people continue to run the neural concept co-pilot, the engineering co-pilot with anything less than a fable model? Or is it going to be like, nah, you got to pay for the best because that's where all the insights come from and the bill is going through the roof, but like we have no choice. But to do that, to stay competitive, where do you think we're going to land in the short term on this willingness to pay question? It's a very good question, again. Considering the value is key, and I mean, it's a decision we always have also with the companies we work with, right? Typically, when you think about design breakthrough, right, so much better performance than what you could get before, we have discussion with suppliers, right, that are selling to the big OEMs, the big OEMs down there. are similar aspects. If you can get a better design, probably means that you are much more competitive on the market. Probably means that you will win more projects, more programs with wins and research more controls. If today, let's assume you're building battery cool plates to cool batteries, right? If you can win one more program per year, that's millions, 10s of millions of dollars, right? Just one more program on the 350 you're winning every year. Right? So that's very tangible. But the other way to see it is, if I can get much faster to a good design, yesterday it took me six months, now it takes me 3 months. I can spend the other three months optimizing my manufacturing process to reduce the cost as much as possible and I become even more competitive to my clients. Right? And this has indirect dollar value as well. If your part is 10% cheaper in competition because you spent three months, you could allow yourself to spend 3 months working on the manufacturing process, tune in the details, then you win this one, two, three more programs that are 10 hundreds of millions of stocks. And then if you go on the OEM side, if you can shrink down your development times from 48 to 24 months, that's also millions of developments you're selling, you're selling for every car, right? A car is typically a billion, right, to develop or from scratch. But if you can even 20% of it, the amount is pretty quick. Yeah, a lot of opportunity for savings in there. What do you think American car companies, to take one very salient example, or you can broaden it as well, what do you think they should set as their kind of critical milestones, like must-hit accomplishments with AI over the next Let's even just say one to two years. We know on that time scale that OpenAI is planning to have a very large chunk taken out of ML research itself in terms of automation. We know that we're already iterating at half the speed of the Chinese companies. We see some hard manufacturing places where the product cycle has accelerated. Look no further than NVIDIA for probably the most dramatic example of this. Forget about like what would get you initially like a, coffee spit take and laughed out of the room if you said it. What do you think is like the actual achievable speed up that you would, heart of hearts tell the CEO of GM, like this is what you really need to be able to do in terms of speed up if you want to be meaningfully, you know, durably competitive in the AI era.…

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