Nathan Labenz: belief

Transcript context

…For sure. I think it's going to be a massive disruption in the markets. And I think it's going to create exponential gaps between the companies that are able to adopt this AI-driven issue and the ones that are not, right? And the gap is going to widen essentially over the past the next few years for sure, right? So there's going to be a lot of disruption. What is complicated for companies if you think about traditional OEM? is that they've been building cars essentially the same way for the past 20 years, right? Same teams, same tools, same know how, right? So you're asking engineers that have worked the same way in a long time. Now to change their thinking and even the governance of their own company, right? Seeing as some are embracing it faster than others, right? And our role is to make sure that we can support them in that journey, show them how others are doing it, what are the best practices out there, and move them through the process. But I also believe that, yes, there is also an opportunity today for a company that is building hardware to come into come fast, right? We talk a lot about these digital native companies, right? And we work with many of those outside of automotive, right, that are building electronic products, consumer electronic products, right? So those companies have been building hardware for the past 10 years, max, maximum, right? And you feel that they're able to pick up these new workflows much faster. Right. What do I mean by that? I mean that in a year, they've had massive impact, massive speed up of their development workforce across many applications, right? And within the slower pace in the larger, older companies, engineering companies out there. Yeah, that's been the story of Detroit for quite a while. It's been companies that they came up, they got so big and so powerful and had such market dominance. that they forgot that they might need to evolve. And they've come a long way since then. I'm talking, that's like a 50 years ago phenomenon. They've come a long way, but they're now going to be faced, I think, with their most profound challenge ever. And competing with like Japanese companies in the 70s and 80s is potentially going to be easy mode compared to competing with AI native companies if things go a certain way. So it's going to be really interesting to watch the organizational dynamics and challenges of that. When you think about it, some numbers today, Western Europe or US OEM, it takes them between 48 to 60 months for a new car developed. From the moment they want to launch it to the actual moment it hits the plant and it's being manufactured. In China, it's 18 to 24 months. Everything those companies in the US and Europe care about is how do we get from 60 to 24 months, right? Because that's what's going to create the next competitive advantage finally.…

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