Jim Cramer looks at the evolution of AI innovation

my mission is simple to make you money I'm here to level the playing field for all investors there's always a bull market somewhere and I promise to help you find it may have money Starts Now hey I'm Kramer welcome to M money welcome to kram other my friends I'm just trying to make you little money my job is not just to explain but to entertain teach so call me 1800 743 CBC tweet me at Jim ker now not Longo we were constantly told that this AI stuff pure hype according to Conventional wisdom there was no way it could ever live up to expectations but after speaking to Mark benot the CEO of Tech Giant Salesforce last night you know what I'm to think that not only are there no Hollow promises being made here but the fruits of the off banded about terms like generative AI accelerate Computing could be far sweeter than anyone thought possible that's right I believe that the reality behind the buzzwords may actually exceed expect as perhaps even dramatically and that's the reason why Salesforce rallied 11% today it deserved to today's action was all about Salesforce and some others in its wake with the D gaining 309 points a lot of it because of the gain in the stock of Salesforce member of that Elite group of companies the S&P advancing 0. 51% and of course the NASDAQ poll voting 1. 30% House of pleasure I try not to go into too much depth about the power of AI because I'm sure you're sick of hearing about it but now I'm thinking maybe I don't talk enough about it at all there's just too much money being made and I don't want to downplay that because you know what anything that makes you money will count me all in here's the quick history first Nvidia provide the platform the hardware and software for all good things will occur they changed the world with a two-prong assault in the status quo accelerated Computing really fast and generative AI we just didn't know it at the time for 5 years now Nvidia CEO Jen Wang has been telling us that his fastest chips could upend everything change the world change it for the better and more importantly his full stack would reduce the cost of ownership and give customers a massive rate of return but until recently we had no idea how that would actually work tangibility we had no tangible evidence then exactly two years ago we saw the power of this platform with open AI chat GPT until then Nvidia had been looked down upon by clueless Tech snobs as a maker video game chips intel was King Nvidia originally was Pawn with some industrial wins Nvidia become maybe I don't know night Bishop but practically overnight because of gener of AI and accelerated Computing Nvidia had become Crown King Intel's not even on the board [Music] anymore even then it was hard to explain the value proposition to you though because what does J of AI even do it felt like kind of a parlor game oh write a ha cou show me what it looked like for Jim Craner to interview with Gandhi on Mad Money Jo Sayan yada y y lots of fun but nothing really commercial nothing to make money from now Jon proti everywhere about a new Industrial Revolution but none of this stuff seemed life-changing for all but a few in they know the tech cognic Senti oh sure we were aware that there were gigantic Cloud infrastructure businesses Amazon web services Microsoft Azure Google Cloud Oracle Cloud infrastructure we knew that Tesla was ordering everything Nvidia made or at least tried to but never got enough and so were Microsoft Google Amazon and The Meta they were packing Nvidia chips into these data centers all over the world but who know what a data center was sure Tesla needed the chips for driverless cars Microsoft needed them for chat Che co-pilot Google for Gemini meta for meta AI startup like anthropic got S7 billion dollars from investors including Amazon and Google to create something called Claude not like Claude range but like Claude but again we just couldn't figure out how the heck they were going to get a return on their investment to help call centers we got call centers to help law firms I don't know Law Firm that use it loan officers really maybe to summarize things produce wrote documents mundane and of course to write term papers for college kids whose parents spent $80 ,000 a years so they can become chat gbt proficient sure the tech Titans had the money to spend but it started to feel like AI was some sort of multi-billion dollar joke that none of us were in on I mean why did Oracle founder Larry Ellison say three months ago quote we have 162 data centers now I expect we'll have 1,000 or 2,000 or more Oracle data Cloud centers around the world for who for what nobody could articulate one practical idea that seemed to make economic sense save the digital twin twin a way to build factories with less waste by constructing a digital AI inspired prototype might as well be some revil model building kit remember those at this point some of the smartest people I know started saying a lot of hedge fun guys you know started saying you know what that I Jim Kramer had drunk the AI Kool-Aid for believing there was anything big here other than a phony arms race I stuck to my guns although other than service now which was using nvidia's platform to make workers more productive people just didn't see it and then last night gloriously we got the confirmation I've been waiting for when Salesforce reported back in September at that celebration of all things Tech dream Force Co Mark benf told us that this company created something called agent force that could collaborate with humans to improve customer relations and many more things it was the first time we had heard about the customer in relation to AI though it's always been internal hidden unknown like agentic some madeup word that nobody could explain until now Last Night Benny put on a clinic he explained that there's a new concept it's called digital labor it's a whole new Workforce one that works side by side with Harry bager employees who want to be more productive but they can't be because they have to do too many jobs in a world where hiring extra people just has become way too expensive suddenly though we have agent force and with it Mark said I quote we're unleashing this new year of digital labor force for every business and every industry he went on to say quote the implications are just simply profound now people ridicule me for saying how much we need AI but Mark says quote for decades economic growth depended on expanding the work human Workforce it was all about getting more labor end quote not anymore not with agents powered by AI who have your dating can work faster doing tedious things but essential jobs that nobody wants and there it is you hear that Mark got 200 deals in the first week of agent force alone uh lots of brand named companies too do you know there are thousands more in the pipeline real customers real money tangible that's an insane amount of business to do and an Arbiter of great things to come there's a watch sensus that AI is simply about replacing people well that is just completely wrong Jensen never said he was going to have that happen he said it was a force multiplier but not a lot of people believed him he said I would create more jobs I really thought people were I'll give me a break creating jobs that couldn't be afforded before making people more productive allowing them to do more business helping customers in deeper ways that's what this is about as Mark put a quote jobs are going to evolve roles are going to shift and businesses will need to adapt and quote you know what he left out two words or die sure it's going to be expensive up front we know that demand for data centers computing power is actually accelerating that was the lesson last night from Marvel Tech their conference School wow we heard that one and they partner with everyone including AI to make AI chips including meta Amazon Google and Microsoft after those two big quarters last night all I can say is these Tech Titans aren't over building in some misguided arms race they're simply trying to keep up with demand both current and perceived they'll need every Nvidia full stack they can get their hands on if none of that makes any sense to you just look at all the St at the stocks Salesforce stock finished up 11% marll jumped 23% now there will always be Skeptics but we now have that crucial use case that we've been waiting for a gentics they're only taking away the jobs we don't want that we can't fill giving us more time to do what we're actually good at with lower birth rates with fewer people in the workforce maybe we have no choice but to bring in Salesforce to plug into the data center to discover what Jensen's being been predicting all long now we have the digital labor force there's your revolutionaries here's the bottom line when this new Industrial Revolution takes off you won't want to speak to a human they don't have the time to talk to you I say give me the Asian Force bring on the agentic and thank Kens for the digital labor force so that we can do real stuff not the tedious task that we were made that we've been made to do every day because somebody's got to do it not anymore now machine can do it and Incredibly it does it better than we can Jeff in Florida Jeff hi uh love your show um my wife and I watch it every evening and particularly enjoy it because the start of it coincides with the start of cocktail hour around here wow but hey g&t oh no it's actually the winner I think I have to do a c 12 or plus four on my voice M Cal go ahead the the stock I was calling about was Dan her I've owned it in the past seems to be solid company good management uh Meats project and has a dividend but the last 60 days been taking a precipitous drop and I'm wondering if this would be a good entry point or if there's something going on that I should be there's nothing going on other than good things we own up for the child trust let me tell you they dropped the hammer when they said the China business hasn't come back enough with the China business there's not going to be any stimulus for healthcare till we see what Trump does so what I'm saying is by Dan and her now this is the cheapest I've seen Dana her in my lifetime pull the trigger all right listen to me AI is giving us some real examples of how it will create a new Industrial Revolution I think it couldn't come soon enough remember these terms a gentx digital labor force get used to them may money tonight I'm hearing what drove crack cracker BS H and bottom line beat this quarter when I sit down with the co then Campbell coo Mark class announc he was retiring to make the move over to the Washington commanders I'm recapping some of the incredible work he did while at the Helm of the soup King Pin and hearing what's on the horizon for this great man who's also a vet and Octan jumped High in today's tape I'm learning more about what Wall Street liked in the quarter with the company top BR so stay with Kramer don't miss a second of Mad Money follow at Jim Kramer on X have a question tweet Kramer # mad mentions send Jim an email to madmoney cnbc.

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