Agrawal: Cloud Computing Generates $400B in Apps but Only $50B in Semis
Apoorv Agrawal · Understanding OpenAI’s $500B Valuation · Sourcery with Molly O'Shea · Aug 27, 2025 · at 39:12
Apoorv Agrawal, Partner at Altimeter Capital, contrasts the revenue distribution across the tech stack in cloud computing versus generative AI.
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“In the cloud super cycle, you know, you have about. Four hundred billion dollars of revenue that is being earned by the applications. Let's call it the layer one. You've got about two hundred billion spent on infrastructure. This is AWS and GCP and Azure, et cetera. And you've got about fifty billion on semis. This is Intel, AMD, et cetera, the CPU layer.”
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