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Back to AI Cyber Panic, Ken Griffin's Bubble Warning, The Fall of France?, with Ken Griffin & Nikesh Arora.

Why Do Companies Avoid Upgrading Old Software?

Nikesh Arora says companies avoid upgrading old software because technology leaders are rewarded for low cost and for keeping everything available, so an upgrade risks an outage, user complaints, and more spend.

Cyber security is usually 4% to 10% of the information technology budget, and Nikesh Arora says that share is going to have to go up. Financial services and the federal government sit near 10% because they want systems secure and robust. Companies already on the cloud can land at 4% to 5%, because a hyperscaler covers infrastructure security and the company mainly handles application and software security. He puts the band from 4% to 5% on the low end up to 8% to 10% on the high end.

He compares the fight for money to the years after 9/11. With no new attack, people say the spending is too high, and after 20 years without another 9/11 the people who control the purse refuse more funding. He says a bunch of 9/11-scale events are coming in cyber. The phones already ring every day with leaders asking how to get out of the mess, and the next year or so will be brutal once hacked systems come back online.

Transcript

AI Cyber Panic, Ken Griffin's Bubble Warning, The Fall of France? ·

All-In

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  1. Is Most AI Spending Circular?Chamath Palihapitiya says most AI spending is circular.
  2. Why Does Palo Alto Networks Prefer Open Weight AI?Nikesh Arora says Palo Alto Networks prefers open source, open weight models because the company can modify the weights, train them, and interrogate the chain…
  3. Where Is the AI Compute Profit Pool Moving?Nikesh Arora says the AI compute profit pool lives in NVIDIA and the memory industry and is shifting toward hyperscalers that already hold large amounts of…
  4. How Did AI Find Exploits in PHP?Jason Calacanis says AI found two critical exploits, nicknamed PHP to shell, in PHP, the open source language that powers about 70% of websites, including…
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  9. What Is the SpaceX Gift for American Kids?David Friedberg says Elon is going to give every American child, which Friedberg thinks means anyone under 18, one share of SpaceX.
  10. Why Is President Trump's Approval So Low?Jason Calacanis says President Trump's approval is so low because the president no longer talks about the bottom half of the country.

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