Here's the link to a great article from Sequoia which argues the tech industry needs $600B in AI revenue to justify the money spent on GPUs and data centers:
https://lnkd.in/exFU9Wdp Bottom-line >>> OpenAI is the biggest AI pure play and is at $3.4B annual run rate. This feels like a bubble unless products worth buying show up. Source: Sequoia, Dare Obasanjo @Carnage4Life
AI is eating software development
Source: FRED, GBR LLC on X
Electricity consumption has skyrocketed, and this is just the beginning.
As highlighted by Otavio (Tavi) Costa, the surge in electric cars, electric heating, and new AI advancements is dramatically increasing our electricity needs. Among the questions raised? 1) Is the global economy prepared for these changes? 2) Could AI be inflationary in the short run and deflationary in the long run? The extensive infrastructure necessary to harness AI requires hardware expansion, while commodities (particularly metals) remain historically constrained. Source: Crescat Capital, Bloomberg
Amazon enters elite $2tn club as AI optimism fuels rally.
Amazon up ~27% this year, driven by improving growth trends as AI re-accelerates its cloud-computing business. The milestone puts Amazon into an exclusive club of comps worth $2tn or more: Alphabet crossed the level in April, while Nvidia, Microsoft, and Apple are all worth north of $3tn. (via BBG)
Jensen Huang said that the next wave of AI is set to automate $50 TRILLION heavy industries
He also said, "The Blackwell architecture platform will likely be the most successful product in our history and for the entire history of computers." Source: Stocktwits
⚠️ JUST IN: *DELL, NVIDIA AND SMCI COLLABORATE TO POWER ELON MUSK'S GROK AI FACTORY
$SMCI and $NVDA, rose over 4% in overnight trading after Elon Musk says they are working on AI supercomputer for xAI. $DELL has announced a partnership with hashtag#NVIDIA to construct an AI Factory designed to boost the capabilities of Grok, an AI model developed by Elon Musk's company, xAI. Source: www.investing.com, www.msn.com
Is AI taking jobs away from Software Developers? 🤔
Source: Barchart
Apple is #2 again with a market cap of $3.17tn after Tuesday's AI rally.
Source: Bloomberg, HolgerZ
