The Ledger, every show

“The chip companies are now stepping up and saying, okay, we'll absorb some of the risk. We'll put in the capital to finance this build out where the demand on the other side is not so clear because of course the chip companies also get to book this as revenue.”

“What I think is going to be interesting if to the extent that the bubble unwinds at some point, it's going to be an equity unwind. And what that looks like is 40% of the S&P 500 is basically a bet on AI. And so to the extent that the bet unwinds, stock prices …”

“I think that the new playbook for these AI startups is actually going to be much more about hire the AI generalist, this 23, 24, 25 year old who's really native in AI, really passionate about it, and I think those are the sort of the front lines that are going…”

“It's like, we're probably gonna be fine. AI is probably gonna change our lives and make it better. It's gonna improve productivity. Maybe AGI is gonna happen when you and I are like, 90, but I don't think AGI is happening like tomorrow.”

“Definitely OpenAI. I mean, OpenAI has a brand, it has consumer distribution, it has product market fit with ChatGBT, which is a 3.4 billion dollar revenue business now. I think ChatGBT will definitely be around. Yeah, I think a bunch of the others will too for…”

“You basically have about three trillion dollars that needs to get paid back just since chat GBT.”

“Today humans do 99% of cognitive work in 50 years, humans are going to do maybe one percent of cognitive work, right?”

“What has happened with Anthropic in the last year is nothing short of mind blowing to anyone who studied companies, right? It's the fastest growing company in history.”

“Today it's a hundred billion plus across OpenAI and Anthropic. Now there's still two companies driving the vast, vast, vast majority of the revenue in AI.”

“Andre Karpathy just joined.”

“The reality is, when you look at the ecosystem today versus two years ago, the vertically integrated companies have not been able to leverage that vertical integration into some model advantage.”

“If you invest one hundred fifty billion in NVIDIA chips, that's about three hundred billion of data center investments. And to pay that back, the person using the compute needs to earn a 50% gross margin. So there's about six hundred billion of revenue that ne…”

“One of the predictions I made last year, in addition to saying it was going to be the year of the data center in 20, 25, I said, Hey, we're going to have these construction delays. We're going to have issues now in building out these data centers. And the info…”

“If you're a 25 year old recent grad from an elite university who is perceived to be an AI expert, you can get a fifty hundred million dollar pay package right now. And if you are a brand name that everyone recognizes your name, you can get a billion dollar pay…”

“I think that competitive pressures will push all of the model providers to spend more time on this and to have teams focused on this. So I think the answer is yes. I do think that this is a trend that is going to be durable.”

“So I think if you're a producer of compute, you're fundamentally in a commodity business, just like an oil company is in a commodity business, and that is going to trade a different way, and that is going to have more cyclicality than if you're in a non-commod…”

“And I think probably 80% plus of the dollars in AI are still going to producers of compute. Not consumers of compute.”

“And so I think until the incentives change, the behavior is not going to change. And so there is no coordinating mechanism.”

“Microsoft walked away from two data centers and it sent a message to the market like, hey, we're not stepping up.”

“I actually think that what's interesting about this AI build out is that for the most part, and let's put Oracle aside, which maybe has some debt, but for the most part, the AI build out today has been equity funded and cash funded.”

“We're like one percent there on catching up. Like we're actually so, so early in this defense cycle because, you know, now we have a few dozen companies, maybe a hundred companies that have sort of new innovations. They're not integrated into the force structu…”

“And I guess my framework, and this is the thesis that I've been investing behind now for the last couple of years is my framework is there are going to be fewer companies that succeed in defense for this reason. Defense is consolidated for good reason. There's…”

“I think the idea that we're going to be sitting here in 10 years talking to our AI, having a relationship with our AI, I think that's very likely, and I think it's a little bit sci-fi right now and I think it's going to get less so in the coming years.”

“No one's ever going to train a frontier model on the same data center twice, because by the time you've trained it, the GPUs will be outdated, and the data center will be too small.”

“Believing in AI and believing that infinite capex in the next two years, those are very different concepts. You can believe in AI, but also believe that the amount of capex in the next 24 months may be difficult to pay back.”

“The wrong takeaway is, oh, Google knows something we don't know, and therefore is making this investment, and therefore hundreds of billions of dollars of AI revenue are guaranteed in the next two years. That's the extrapolation I think people were making that…”

“If you had pricing power before AI, you'll have pricing power after AI. If you didn't have pricing power before AI, you probably won't have pricing power after AI.”

“I think the vertical integration piece is gonna matter in the sense of you can't have a separate team running the data center and a separate team building the model. That is just not gonna work as these models get bigger and bigger. You need to deeply couple t…”

“I think in 12 months you'll see all these charts coming out of, like, more factories are getting built than ever before, and all this stuff. The industrial revolution is just getting started.”

“And so I think one thing that we're going to see more of is off balance sheet financing.”

“There's this great line that people at Sequoia say, which is Sequoia hires investors, breaks them down, and then rebuilds them in the Sequoia mold.”

“Generators are sold out until 2030”

“AI is now one of the biggest contributors to GDP growth in the United States”

“Well, I think the simple version would be OpenAI and Anthropic are now steel servers and power companies. And that's like a big change that's happened in the last 12 months. And so I actually think we're, you know, in many ways, OpenAI and Anthropic are becomi…”

“A gigawatt is forty billion dollars to build out. Jensen says it's 50 or 60 if you use the next generation Vero Rubin chips. So let's say it's somewhere between 40 and sixty billion.”

“I actually agree with him fundamentally that AI is going to affect five percent of GDP. Probably where I disagree with Massa, so I think he used the nine trillion dollars. I think that's the number he used. It's going to Disrupt nine trillion of GDP. And then …”

“Companies that are on that trajectory or have crossed that trajectory are companies like Harvey and Open Evidence and I think, and Clay and Juicebox.”

“This cloud business today is a two hundred and fifty billion dollar business. So the cloud business today is the same size as the SaaS sector. That's the business that Azure, Google and AWS control is the same size as the entire SaaS sector.”

“Data centers take about two years to build. You are going to build, and it costs about two billion dollars per data center.”

“There will be some sectors where you're right, things get commoditized, and they just basically get bid down to zero percent gross margin.”

“I visited this company that's building long duration batteries that I had invested in at KOTU. They literally built a billion dollar factory in the last 12 months.”

“We don't, and I, you know, there's sort of an interesting phenomenon here, which is, you know, the Biden administration passed the IRA, the Inflation Reduction Act, and this was this huge stimulus bill that basically incentivized everyone to build solar and bu…”

“And so I don't know that it's going to be this like loud crisis that people anticipate. I think it's going to be a slow track for more renewable energy, more power on the grid. And we're just going to, we're going to plot our way there.”

“I think that China is going to catch up.”

“The bar for success is so, so, so high. Unless this company is one of the 50 most important companies in the world. You haven't done your job well.”

“I believe in God. Most people in Silicon Valley do not.”

“Nvidia stocks barely moved this year, even though these high-flying beta companies are going crazy because they're raising price. Jensen isn't being insane on price. He probably could have been. He hasn't been crazy on price.”

“The best trade of 2025 was the AI power trade.”