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0:01 · order to be able to. I don't
0:04 · even want to call it play
0:05 · invest in this. And I'm because
0:06 · it knows how to run the most
0:08 · important part of the data
0:09 · center. And Dave Cody is the
0:11 · chairman of Vertiv, which I
0:13 · think is when I think of data
0:15 · center, I think of you because
0:16 · you were the first one that
0:19 · explained to me at $16 that
0:21 · this was $16. Dave says, you
0:23 · know, Jim, if you look at this
0:25 · Vertiv, I said, oh man, it's
0:27 · all the way at $16, because
0:28 · have you thought about it the
0:30 · other way? It's all the way at
0:31 · $16. Dave Cody, thanks for
0:33 · being on the show.
0:34 · >> But actually the one that
0:35 · I've always liked. You sent me
0:38 · this clip once that said, I
0:38 · feel like I'm sitting on a gold
0:40 · mine. I little did I know, it
0:42 · was a diamond mine that I was
0:43 · sitting on.
0:44 · >> Yeah, I love the Dave used
0:47 · to live next door to me in
0:47 · summit and he has a great,
0:49 · really great, great conference
0:50 · in in February and March that I
0:52 · attend. Okay. So Dave, let me
0:53 · ask you. Yeah, you're one of
0:55 · the hardest nosed business
0:56 · people I have ever met. Do you
0:58 · worry that the data center AI
1:00 · build out is now being financed
1:03 · by so much debt, or are we okay?
1:06 · >> Yeah, I don't know. I don't
1:07 · worry about it all that that
1:10 · much because, you know, the
1:11 · amount of debt you can handle
1:13 · always depends on what kind of
1:14 · cash you can generate. And
1:15 · these are big cash generating
1:17 · assets. I mean, they they
1:19 · generate a lot of cash. So no
1:20 · I'm not that worried about that
1:21 · okay. I mean usually the follow
1:24 · on to that is are we in a
1:26 · bubble of some kind?
1:27 · >> I'm not going to give you
1:29 · that because you know okay.
1:30 · >> Good. Because I.
1:31 · >> Think that I'm far more
1:32 · concerned about the companies
1:34 · whose stocks are going down
1:36 · precipitously, whom I think are
1:38 · doing well. For instance, I
1:39 · have to tell you, I think
1:41 · alphabet is doing incredibly
1:42 · well, but it's getting taken
1:44 · down with companies that don't
1:46 · have cash. And I think that
1:47 · Nvidia is real and that people
1:49 · are finally they're giving up
1:50 · on it, in part because it's
1:52 · going down. And I think that I
1:54 · remember when Birdie was at 100
1:56 · and right after they reported,
1:58 · no one said, Jim, you know it.
1:59 · We're our orders are going up.
2:02 · Yeah. It what is the state of
2:03 · things is what I'm saying.
2:05 · >> Oh, I'd say it's very
2:07 · positive for at least the next
2:09 · five years that everything is
2:11 · five years. Yeah. It's kind of
2:12 · tough to look much beyond that.
2:14 · But if you just take a look at
2:16 · the orders and you take a look
2:18 · at how much their AI businesses
2:20 · are growing, so there'll be a
2:21 · tendency to look at, okay, data
2:23 · center sales are up so much.
2:24 · But if you take a look at AI
2:26 · sales within some of these big
2:28 · companies, a couple of them are
2:29 · triple digit. Others just talk
2:31 · about how robust it is and AI
2:34 · usage is evolving. We still
2:36 · think of it as ChatGPT you do
2:38 · something on your machine which
2:39 · you're going to start to get
2:41 · more of, and this is happening
2:42 · is like machine to machine. So
2:44 · AI to AI, no human interface.
2:46 · Right. So you'll see it in a
2:48 · factory, for example, where
2:49 · this machine is seeing a
2:51 · problem that they if things can
2:53 · be rectified down the line by
2:54 · another machine, it can talk to
2:56 · the other machine. At some
2:57 · point you'll get to a point
2:59 · where a company wants enough.
3:01 · Trust exists. A company's AI
3:02 · can talk to another company's
3:04 · AI. I mean.
3:05 · >> This is.
3:06 · >> Very this is all just
3:07 · beginning.
3:07 · >> You think you think there'll
3:10 · be whole divisions of companies
3:11 · that aren't run by people?
3:12 · >> Oh, wow. Not soon. Yeah,
3:17 · okay. Not soon. But, I mean,
3:19 · you keep extending this stuff.
3:21 · At some point, you'd have to
3:22 · say, yeah, probably. Probably
3:24 · could.
3:25 · >> Or at least strategic
3:25 · missions will be written by not
3:28 · people.
3:28 · >> You'd have to you keep
3:29 · carrying it on, you say. Yeah,
3:32 · at some point that has to be
3:33 · possible. But it's not
3:34 · something that I would say is
3:35 · anytime soon.
3:36 · >> Now I want people to
3:38 · understand where your company
3:38 · fits in the food chain. If I'm
3:40 · in a data center without a
3:42 · naked data center, they run
3:43 · really, really hot and
3:44 · therefore they burn up. Can you
3:45 · tell people in the food chain
3:48 · why Vertiv is the one that you
3:51 · would that would know more than
3:51 · almost anybody?
3:52 · >> Oh yeah. Well, we've got the
3:54 · panoply of the innards of a
3:56 · data center other than the
3:57 · server. So you think about the
3:59 · two of the big things that you
4:01 · have to accomplish are
4:04 · uninterruptible, sustainable
4:04 · power coming in, which is a lot
4:06 · more difficult than it sounds.
4:08 · The other is how do you cool
4:09 · everything in the building? It
4:11 · used to be very simple. You
4:13 · just had a big air conditioner,
4:15 · you know, cool air in warm air
4:16 · extricated. Now with this
4:17 · liquid cooling where you have
4:18 · to get the liquid directly to
4:20 · the chip in order to remove
4:22 · heat. Significant part of the
4:24 · functioning of a data center.
4:25 · Because if you're not cooling
4:27 · those chips, the thing stops
4:29 · working very quickly. Third
4:29 · piece of it is the server rack,
4:31 · and you think it sounds like a
4:33 · simple thing that you just buy
4:35 · in a store somewhere. But these
4:36 · server racks that the servers
4:38 · plug into very sophist...

--> YouTube-Generated Transcript <--
0:01	·	order to be able to. I don't
0:04	·	even want to call it play
0:05	·	invest in this. And I'm because
0:06	·	it knows how to run the most
0:08	·	important part of the data
0:09	·	center. And Dave Cody is the
0:11	·	chairman of Vertiv, which I
0:13	·	think is when I think of data
0:15	·	center, I think of you because
0:16	·	you were the first one that
0:19	·	explained to me at $16 that
0:21	·	this was $16. Dave says, you
0:23	·	know, Jim, if you look at this
0:25	·	Vertiv, I said, oh man, it's
0:27	·	all the way at $16, because
0:28	·	have you thought about it the
0:30	·	other way? It's all the way at
0:31	·	$16. Dave Cody, thanks for
0:33	·	being on the show.
0:34	·	>> But actually the one that
0:35	·	I've always liked. You sent me
0:38	·	this clip once that said, I
0:38	·	feel like I'm sitting on a gold
0:40	·	mine. I little did I know, it
0:42	·	was a diamond mine that I was
0:43	·	sitting on.
0:44	·	>> Yeah, I love the Dave used
0:47	·	to live next door to me in
0:47	·	summit and he has a great,
0:49	·	really great, great conference
0:50	·	in in February and March that I
0:52	·	attend. Okay. So Dave, let me
0:53	·	ask you. Yeah, you're one of
0:55	·	the hardest nosed business
0:56	·	people I have ever met. Do you
0:58	·	worry that the data center AI
1:00	·	build out is now being financed
1:03	·	by so much debt, or are we okay?
1:06	·	>> Yeah, I don't know. I don't
1:07	·	worry about it all that that
1:10	·	much because, you know, the
1:11	·	amount of debt you can handle
1:13	·	always depends on what kind of
1:14	·	cash you can generate. And
1:15	·	these are big cash generating
1:17	·	assets. I mean, they they
1:19	·	generate a lot of cash. So no
1:20	·	I'm not that worried about that
1:21	·	okay. I mean usually the follow
1:24	·	on to that is are we in a
1:26	·	bubble of some kind?
1:27	·	>> I'm not going to give you
1:29	·	that because you know okay.
1:30	·	>> Good. Because I.
1:31	·	>> Think that I'm far more
1:32	·	concerned about the companies
1:34	·	whose stocks are going down
1:36	·	precipitously, whom I think are
1:38	·	doing well. For instance, I
1:39	·	have to tell you, I think
1:41	·	alphabet is doing incredibly
1:42	·	well, but it's getting taken
1:44	·	down with companies that don't
1:46	·	have cash. And I think that
1:47	·	Nvidia is real and that people
1:49	·	are finally they're giving up
1:50	·	on it, in part because it's
1:52	·	going down. And I think that I
1:54	·	remember when Birdie was at 100
1:56	·	and right after they reported,
1:58	·	no one said, Jim, you know it.
1:59	·	We're our orders are going up.
2:02	·	Yeah. It what is the state of
2:03	·	things is what I'm saying.
2:05	·	>> Oh, I'd say it's very
2:07	·	positive for at least the next
2:09	·	five years that everything is
2:11	·	five years. Yeah. It's kind of
2:12	·	tough to look much beyond that.
2:14	·	But if you just take a look at
2:16	·	the orders and you take a look
2:18	·	at how much their AI businesses
2:20	·	are growing, so there'll be a
2:21	·	tendency to look at, okay, data
2:23	·	center sales are up so much.
2:24	·	But if you take a look at AI
2:26	·	sales within some of these big
2:28	·	companies, a couple of them are
2:29	·	triple digit. Others just talk
2:31	·	about how robust it is and AI
2:34	·	usage is evolving. We still
2:36	·	think of it as ChatGPT you do
2:38	·	something on your machine which
2:39	·	you're going to start to get
2:41	·	more of, and this is happening
2:42	·	is like machine to machine. So
2:44	·	AI to AI, no human interface.
2:46	·	Right. So you'll see it in a
2:48	·	factory, for example, where
2:49	·	this machine is seeing a
2:51	·	problem that they if things can
2:53	·	be rectified down the line by
2:54	·	another machine, it can talk to
2:56	·	the other machine. At some
2:57	·	point you'll get to a point
2:59	·	where a company wants enough.
3:01	·	Trust exists. A company's AI
3:02	·	can talk to another company's
3:04	·	AI. I mean.
3:05	·	>> This is.
3:06	·	>> Very this is all just
3:07	·	beginning.
3:07	·	>> You think you think there'll
3:10	·	be whole divisions of companies
3:11	·	that aren't run by people?
3:12	·	>> Oh, wow. Not soon. Yeah,
3:17	·	okay. Not soon. But, I mean,
3:19	·	you keep extending this stuff.
3:21	·	At some point, you'd have to
3:22	·	say, yeah, probably. Probably
3:24	·	could.
3:25	·	>> Or at least strategic
3:25	·	missions will be written by not
3:28	·	people.
3:28	·	>> You'd have to you keep
3:29	·	carrying it on, you say. Yeah,
3:32	·	at some point that has to be
3:33	·	possible. But it's not
3:34	·	something that I would say is
3:35	·	anytime soon.
3:36	·	>> Now I want people to
3:38	·	understand where your company
3:38	·	fits in the food chain. If I'm
3:40	·	in a data center without a
3:42	·	naked data center, they run
3:43	·	really, really hot and
3:44	·	therefore they burn up. Can you
3:45	·	tell people in the food chain
3:48	·	why Vertiv is the one that you
3:51	·	would that would know more than
3:51	·	almost anybody?
3:52	·	>> Oh yeah. Well, we've got the
3:54	·	panoply of the innards of a
3:56	·	data center other than the
3:57	·	server. So you think about the
3:59	·	two of the big things that you
4:01	·	have to accomplish are
4:04	·	uninterruptible, sustainable
4:04	·	power coming in, which is a lot
4:06	·	more difficult than it sounds.
4:08	·	The other is how do you cool
4:09	·	everything in the building? It
4:11	·	used to be very simple. You
4:13	·	just had a big air conditioner,
4:15	·	you know, cool air in warm air
4:16	·	extricated. Now with this
4:17	·	liquid cooling where you have
4:18	·	to get the liquid directly to
4:20	·	the chip in order to remove
4:22	·	heat. Significant part of the
4:24	·	functioning of a data center.
4:25	·	Because if you're not cooling
4:27	·	those chips, the thing stops
4:29	·	working very quickly. Third
4:29	·	piece of it is the server rack,
4:31	·	and you think it sounds like a
4:33	·	simple thing that you just buy
4:35	·	in a store somewhere. But these
4:36	·	server racks that the servers
4:38	·	plug into very sophist...