What’s Next for Big Tech, AI and Meta?

• 00:00It’s hard to really know where to start with this big week in tech. But we’ll start with Jensen Wong because he basically has been the man of the year man of the last couple of years here. When you look at what happened with Deep Seac at the start of this week and where we are now here at the end of the week, is anything materially changing? Well, a lot has transpired, you know, not only the deep sea, but also openai looking to raise another round at a massive valuation, 350 billion or so. So to me, you know, the project, Stargate, the Deep Sea, all of these are sort of contradictory in the sense like on one hand, everyone is looking to build larger data centers. On the other hand, we are talking about efficiency and, you know, costs going down. And Nvidia really is at the center of it all. Yeah, the former kind of point helps them. Yeah, costs coming down doesn’t help them, but this gets into the whole CapEx spend and we heard from Microsoft 13 billion run rate on A.I. spending right now. Of course matter has made it clear that they continue to spend at a good clip. We’re going to hear from Amazon next week as well as Alphabet. I am curious with regards to Alphabet and the amount of money that they’ve been spending, how that stacks up with some of these other companies and what you expect to hear on earnings day. Yes. So Alphabet is one of those companies that has been using their own chips for training. And now it feels like everyone is fixated on bringing the training costs down. Everyone wants to deploy more A.I. so air inferencing will ramp up because of the lower costs. But training is where everyone is looking for more efficiencies. And Amazon put out a blog. They integrated deep seek every Hyperscalers is integrating deep sea. Although deep sea is being blocked when it comes to you know, the you say that the consumer level. So there are a lot of you know, contradictory trends that are playing out. But I do think, you know, when it comes to Nvidia’s physically, you’re looking for 20, 26 and 2027, and no one has the conviction right now to say the CapEx growth will be 40, 50% when it comes to these hyperscalers. Is it too easy to say that with deep sea in the week that we’ve seen chips lose software wins, is that too easy? It is too easy, but I think it makes a ton of sense because if inferencing costs are coming down, software vendors benefit the most. And the fear was, you know, LEM cost is coming at the expense of software margins. So right now with LEM costs, inferencing, costs going down, yeah, software margins should be where they are right now. So taking that into account, when we look forward to next to next week and I appreciate that you don’t cover Amazon, but in terms of Amazon Web services and sort of the cloud provider base, what we heard from Microsoft, what’s your read through? I think this helps Amazon because Amazon’s biggest problem was they didn’t have their own Al Alam. Microsoft had openai. Google had their Gemini model. Amazon didn’t have its own lab. They were relying on entropic. So with more open source and Amazon is the largest cloud provider. So that’s where I think their cloud growth can step up if they have open source options available. So from that perspective, Google Cloud, we know they had a sequential acceleration last quarter. I think they will continue to do well. So this race is getting more competitive and Microsoft didn’t really beat their numbers by a lot. So that’s what tells me maybe Amazon could play catch up here in terms of their cloud growth. I want to ask you something a little bit out of left field. Maybe it’s not quite in your wheelhouse, but it is about metal and a report on the Bloomberg terminal, the metal seeking to change its incorporation from Delaware to Texas. Now, it does make it clear in this story based on people familiar, that they’re going to keep their corporate headquarters in California. But the changing of these and corporations, we saw this with Tesla. We’ve seen this, I believe, with Oracle and a few other companies as well. What’s the advantage for them to be in Texas as at least incorporated in Texas as opposed to being a corporate in Delaware or even having their corporate headquarters in California? I mean, it looks like right now he is copying Elon with every move, you know, first the community nodes and now, you know, with the headquarters, they do that a lot, by the way. It’s so true. So, look, I mean, I think clearly there is a lot of regulatory scrutiny for Iran matter both in the US and outside the US. Yeah. And this could be one way to, you know, circumvent that.

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