hyperscaler

“Now you have venture companies actually building defense companies that are going to be super asset heavy. And now you have hyperscalers that have never had any debt that need a lot that are becoming now more capital intensive.”

“Over the next 10 years, I think the business, these hyperscalers, AWS, Azure, will grow fast. I think the margins, my guess, will be challenged, both because the businesses are getting a lot more capital intensive, because AI is capital intensive, more capital…”

“At some point in the next five to 10 years, they'll be generating enormous amounts of free cash flow. When that happens, I think that, ah, they're likely to insource the compute.”

“When we think about the cost of the hyperscalers, right now energy is about budgeted to be about 10% of their cost... If you plug in all of this compute and it's gas powered, and we think gas could double or triple structurally, Even without weather, it could …”

“Everybody who are making decisions in this moment are using the forward curve for natural gas, which is flat, a little backward, a little contiguous, mostly flat out to the twenty-thirties, in the mid threes.”

“If you look at the amount of gigawatts that are supposed to come on, and consensus estimates for hyperscalers, they're effectively modeled, and these are gigawatts of Blackwell and Rubin. Rubin being NVIDIA's next chip, Blackwell being the current chip. They a…”

“Operating cash flows go up, and you could fund this out of, most of this out of operating cash flows, maybe all of it. Like if it reprices at current rates, you could probably fund all of it for the next several years.”