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Here's why: Their combined backlog has now reached roughly $2 trillion. Nearly half of that backlog is expected to convert into revenue over the next 12–24 months. As existing contracts expire, much of that capacity will be renewed at significantly higher prices, since current market rental rates are well above legacy contractual rates and continue to climb. Now add continued AI-driven demand and volume growth. At the same time, capital expenditure growth is expected to slow to around 10% annually by 2028, reducing the pressure on cash generation. The result? A powerful combination of higher pricing, rising volumes, moderating capex, and expanding margins could drive an inflection point in free cash flow, making the post-2028 earnings outlook far stronger than many investors currently expect. Source: Oguz Erkan
Leopold Aschenbrenner's $20 billion AI hedge fund may be facing its first real stress test. After leaving OpenAI, Aschenbrenner became one of the most influential voices in AI with his viral Situational Awareness essay predicting AGI by 2027. He launched Situational Awareness LP in late 2024 with $225 million. Within two years, assets reportedly surged to ~$20 billion, fueled by massive gains in AI stocks. Now the trade is reversing. Oracle and AMD have each fallen around 20% in July, while smaller AI names such as Nebius, Bloom Energy, and SanDisk have dropped even more. The biggest signal? The fund is reportedly offering some investors the opportunity to purchase assets directly from its portfolio. That's unusual. Rather than selling into a weak market and pushing prices even lower, it may be seeking liquidity through private transfers. When even the hottest AI funds start looking for liquidity, investors should pay attention. Source: FT, Bull Theory
Source: Hedgeye, Bloomberg

