Latest / Earn Your Leisure / Are We Building a Permanent Tech Prison? NVIDIA’s $500B Plan Explained

Transcript

Are We Building a Permanent Tech Prison? NVIDIA’s $500B Plan Explained · Earn Your Leisure

• 0:00
  Speaker 1: Let's do it.
• 0:00
  Speaker 2: This is five hundred billion AI investment.
• 0:07
  Speaker 3: I'm ver very honest. I already picked a good lesson.
• 0:10
  Speaker 3: And when you have battles too, you can't have too many.
• 0:13
  Speaker 3: So I picked my battle with Tim Cook and Apple.
• 0:16
  Speaker 3: Regardless of what I may think about the circular investment,
• 0:18
  Speaker 3: I will never say nothing bad about a video.
• 0:20
  Speaker 1: So I'm a video vendor.
• 0:22
  Speaker 3: I do think it's very interesting to have this partnership
• 0:26
  Speaker 3: between Apollo, Blackstone, Gold and Sacks, all amazing companies on
• 0:30
  Speaker 3: the publicly traded markets, all good investments. Long term, I
• 0:35
  Speaker 3: do want to see how this develops. I was interested
• 0:39
  Speaker 3: on your thoughts on what you think of it. Is
• 0:41
  Speaker 3: it a good sign that the industry is going in
• 0:44
  Speaker 3: the right direction, or is there like a continuation of
• 0:48
  Speaker 3: the circular investment that is now getting broader since all
• 0:52
  Speaker 3: the banks are involved.
• 0:54
  Speaker 4: Yeah, I think on the the the barecase, I think
• 0:58
  Speaker 4: you have to look at it right that circular piece.
• 1:00
  Speaker 4: I think the bold case. I think it's encouraging. When
• 1:04
  Speaker 4: we talk about CAPEX, we're usually talking about cash flow
• 1:09
  Speaker 4: from companies and that CAPEX is funded, and we keep
• 1:13
  Speaker 4: talking about this trillion dollars that's going to be spent
• 1:15
  Speaker 4: this year, and that's coming predominantly from these four hyperscalers.
• 1:19
  Speaker 4: But when you start hearing institutional firms, right Apollo, like
• 1:23
  Speaker 4: you said, Blackstone, Golden, Sacks, and a few others, that
• 1:25
  Speaker 4: means that institutions are now putting money in here, and
• 1:30
  Speaker 4: it won't solely be hyperscalers, it'll be in addition with
• 1:33
  Speaker 4: so five hundred billion is nothing to sneeze that. The
• 1:36
  Speaker 4: fact that Nvidia has their hand in this as well,
• 1:39
  Speaker 4: I don't I mean, what else can we say about
• 1:43
  Speaker 4: this company right like art, it's it's almost I don't
• 1:49
  Speaker 4: know what other supports we can give to it. They're
• 1:51
  Speaker 4: being in this because obviously, when institutional investors are gonna look,
• 1:56
  Speaker 4: the first thing that they're gonna need is compute, And
• 1:58
  Speaker 4: so you keep pairing this tone, Oh, it's going to
• 2:01
  Speaker 4: Compute will be a trader asset.
• 2:03
  Speaker 1: In the future, it's a class on.
• 2:07
  Speaker 4: Asset class and every step that gets taken you can
• 2:10
  Speaker 4: slowly see that that is becoming more and more likely.
• 2:14
  Speaker 4: Right now, the question is that five hundred billion dollar investment,
• 2:19
  Speaker 4: can they get a trillion dollar return.
• 2:25
  Speaker 3: That then one to two ratio? And that's scary because
• 2:29
  Speaker 3: I personally like a five x return. I don't think
• 2:32
  Speaker 3: we're going to get a two point five trillion dollar
• 2:35
  Speaker 3: return out of that. But I never have anything bad
• 2:41
  Speaker 3: to say about the video, And for those you're gonna
• 2:42
  Speaker 3: ask a price that I do like for in videos
• 2:46
  Speaker 3: one ninety nineteen.
• 2:46
  Speaker 1: If it falls to the area, that's a place I
• 2:49
  Speaker 1: would would like to buy.
• 2:50
  Speaker 3: But when I'm looking at return tables, it's going to
• 2:55
  Speaker 3: be hard to get a five or seven x out
• 2:57
  Speaker 3: of a five hundred billion dollar investment. Now, that maybe
• 3:00
  Speaker 3: your goal, but if I don't see a pathway to
• 3:02
  Speaker 3: get in there, that is kind of scary.
• 3:05
  Speaker 1: Yeah, I think.
• 3:06
  Speaker 4: I mean it's encouraging, right, So we got you, said Apollo, Blackstone,
• 3:10
  Speaker 4: black Rock, Brookfield, Goldman, SAS and KKR. We knew that
• 3:16
  Speaker 4: the conviction was there because we knew that the hyper
• 3:18
  Speaker 4: scale is the smartest people in the world, the smart
• 3:21
  Speaker 4: CFOs and some of the smartest engineers in the world
• 3:24
  Speaker 4: of tech are behind that investment. Now to have the
• 3:28
  Speaker 4: biggest institutions in the world also be in that same
• 3:31
  Speaker 4: investment for me, that's a bullet sign. Do you do
• 3:34
  Speaker 4: you feel the same way or is there still like
• 3:36
  Speaker 4: a beer case?
• 3:37
  Speaker 3: No, no, no, no, no, no, absolutely because even at that level, and
• 3:41
  Speaker 3: I talked about it on stage, like the put car
• 3:43
  Speaker 3: ratio of a stock matters how much they're invested in
• 3:47
  Speaker 3: what percentage into a fund. But when you see this
• 3:52
  Speaker 3: is kind of like a post ipo to a certain degrey,
• 3:54
  Speaker 3: like when we went on Wall Street. You see all
• 3:56
  Speaker 3: the banks collaborating. When the big boys get together and
• 4:00
  Speaker 3: when they're putting in fifty billion at a time for
• 4:04
  Speaker 3: a project, they're going to ensure that it works. This
• 4:08
  Speaker 3: is almost like a digital infrastructure build a different version
• 4:13
  Speaker 3: of build back better and so long term, I do
• 4:16
  Speaker 3: think there is a long term case. And it's also
• 4:19
  Speaker 3: showing that it's the last big frontier of something you
• 4:22
  Speaker 3: can invest in at scale that I'm looking for return
• 4:25
  Speaker 3: into five or ten years out. So yeah, it's definitely
• 4:28
  Speaker 3: a bulls skates for then these are not the bottom
• 4:32
  Speaker 3: of a tier ranks. They're all putting money in together
• 4:35
  Speaker 3: and no hedging on it. They're not investing in this
• 4:40
  Speaker 3: and shorting amb They're positive on the stock and then
• 4:44
  Speaker 3: positive on the development of it.
• 4:46
  Speaker 1: So that's a great sign.
• 4:49
  Speaker 4: You bring up a great point, how many times will
• 4:51
  Speaker 4: we see this level investment from this many big players
• 4:54
  Speaker 4: for the same technology that tells you the points of it.
• 4:58
  Speaker 4: They're not just saying, hey, we're doing this for charity.
• 5:00
  Speaker 4: They're doing this because it's not just one trillion they're
• 5:03
  Speaker 4: looking for. They're looking for how do we get to five?
• 5:05
  Speaker 4: How do we get to ten?
• 5:07
  Speaker 1: Yeah? Good point.
• 5:08
  Speaker 2: Let's talk about how long can tech lead?
• 5:15
  Speaker 3: I think you want to start. I know a lot
• 5:21
  Speaker 3: of industries have a shelf life. If you look at railroads,
• 5:26
  Speaker 3: if you look at oil and gas, and you can
• 5:29
  Speaker 3: argue to certain degree energy and oil and gas still
• 5:32
  Speaker 3: runs the world through the partnership through tech. I think
• 5:36
  Speaker 3: it's a great question, but it's also misaligned. If you
• 5:39
  Speaker 3: are a great long term investor, tech is going to
• 5:42
  Speaker 3: run our lives for the next hundred years, and if
• 5:44
  Speaker 3: the oligarchs have anything to do with it, we will
• 5:47
  Speaker 3: be in a permanent tech prison. There's been some conversations
• 5:50
  Speaker 3: on f tech is going to stop being the number
• 5:53
  Speaker 3: one consideration and an investment portfolio. And the truth is
• 5:58
  Speaker 3: our greatest exp to the world in America for the
• 6:01
  Speaker 3: publicly traded markets is our technology. You can make the
• 6:05
  Speaker 3: argument is it good or bad? Is it destroying connection?
• 6:08
  Speaker 3: And families and all that. That's another conversation. But in
• 6:12
  Speaker 3: the worst case scenario, tech probably has like another sixty
• 6:15
  Speaker 3: years to run. And then if once we get out
• 6:17
  Speaker 3: to the twenty.
• 6:19
  Speaker 1: Nineties, do we think tech will be less or more so?
• 6:23
  Speaker 3: Sometimes we can overcomplicate investment too much and then we're
• 6:26
  Speaker 3: trying to time. Once again, that's a big short mindset.
• 6:30
  Speaker 3: When is this industry going to fall apart? My short
• 6:33
  Speaker 3: ass is never. Tech is being included in healthcare, is
• 6:38
  Speaker 3: being included in the oil and glasses, being included in industrials,
• 6:41
  Speaker 3: is being included in education, as being introduced to farming.
• 6:44
  Speaker 1: You can argue technology ruined farming. Tech isn't.
• 6:52
  Speaker 2: Tech actually revolutionized farming though too? Think about it?
• 6:57
  Speaker 1: Good?
• 6:58
  Speaker 3: What's out of the cornin if you're a farmer, not
• 7:02
  Speaker 3: so much now scale ra Sha, I agree with you.
• 7:04
  Speaker 3: But if you're a farmer, maybe not so much. But
• 7:06
  Speaker 3: if you're a technologist, that could make it more efficient
• 7:10
  Speaker 3: for sure.
• 7:12
  Speaker 2: But like irrigation, that's problem. Yeah, but irrigation technology right, yeah,
• 7:20
  Speaker 2: the cotton gin that's technology.
• 7:24
  Speaker 3: Well, we're not going to talk about that particular piece
• 7:26
  Speaker 3: of tech because that was you know, well, the co
• 7:30
  Speaker 3: the cotton gen is with into slavery.
• 7:33
  Speaker 2: That's the thing that so this is this is an
• 7:35
  Speaker 2: interesting way to look at it. Right, Slavery was ended
• 7:38
  Speaker 2: by technology, not by political It wasn't we talked about
• 7:42
  Speaker 2: Abraham Lincoln before. It wasn't political, it wasn't moral. Slavery,
• 7:47
  Speaker 2: the institution of slavery was ended by technology once it
• 7:51
  Speaker 2: became more it became inefficient to have human labor and
• 7:57
  Speaker 2: more efficient to have machine labor, which is a form
• 8:00
  Speaker 2: of technology at that time cutting edge technology that within
• 8:05
  Speaker 2: itself kind of crippled the idea that we need people
• 8:08
  Speaker 2: to pick kai.
• 8:11
  Speaker 3: It went from overt slavery through Farman and those practices,
• 8:14
  Speaker 3: and then it went covert into banking and then venture,
• 8:18
  Speaker 3: which that money flows into technology.
• 8:21
  Speaker 1: So I agree overtly it did.
• 8:23
  Speaker 3: Covertly the racism shifted to a certain degree, and then
• 8:28
  Speaker 3: you can argue then from there, the prison industrial complex
• 8:33
  Speaker 3: developed off of the back of that technology.
• 8:36
  Speaker 1: So it wasn't as overt. So we should call nineteen keys.
• 8:44
  Speaker 4: I think the last segment kind of answers the question
• 8:48
  Speaker 4: for this segment. I don't see a lifetime for us
• 8:52
  Speaker 4: where it doesn't lead. I don't care what sector you're in.
• 8:55
  Speaker 4: It is going to be the forefront of that sector.
• 8:58
  Speaker 4: Whether it's education, whether it's industrials, whether it's healthcare, it
• 9:03
  Speaker 4: will be the thing that disrupts it and changes it
• 9:07
  Speaker 4: now better for worse. That could be a debate, but
• 9:10
  Speaker 4: it is the thing that makes life again. The two
• 9:12
  Speaker 4: things that we need most people want is efficiency and convenience. Right,
• 9:19
  Speaker 4: technology allows for both, and so pick a sector, tech
• 9:24
  Speaker 4: will lead it. I don't care what the company is,
• 9:26
  Speaker 4: and so it will have the lead for the foreseeable future,
• 9:29
  Speaker 4: which tells you why they're investing five hundred billion to
• 9:33
  Speaker 4: turn this into a tradable asset. Where we're talking about compute,
• 9:36
  Speaker 4: which is why five companies are spending a trillion dollars
• 9:39
  Speaker 4: because they're expecting return on it. Which is why they're
• 9:42
  Speaker 4: talking about having robotics, which is why they're talking about
• 9:45
  Speaker 4: having space. Like all these things tell you that technology
• 9:50
  Speaker 4: is going to lead the foreseeable future and who knows
• 9:52
  Speaker 4: how many lifetimes.
• 9:53
  Speaker 2: And also that was one of the things I listened
• 9:56
  Speaker 2: to Mike Novercraftsmen. He was on to invest that stage,
• 9:58
  Speaker 2: and he was talking about data centers. So this company
• 10:00
  Speaker 2: just brought the name of rights to Texas Tech Stadium,
• 10:03
  Speaker 2: and he's he's has operations in Texas now, so he's
• 10:10
  Speaker 2: invested in data centers. And he was saying the cost
• 10:12
  Speaker 2: of a data center, these costs of the data centers
• 10:14
  Speaker 2: is crazy. I think he's like his company personally put
• 10:17
  Speaker 2: like five billion. They financed twenty five billion, thirty billion
• 10:21
  Speaker 2: all in for like one data center one. And he
• 10:25
  Speaker 2: was talking about that on stage as far as like
• 10:27
  Speaker 2: how much money is being poured into these data centers.
• 10:30
  Speaker 2: So the tech spending, going back to the five hundred
• 10:35
  Speaker 2: billion dollar investment, I mean, it's it's going to be
• 10:40
  Speaker 2: it's unfathomable. And how much money is going to be
• 10:42
  Speaker 2: spent on technology in the next Alicia Little had robots
• 10:46
  Speaker 2: doing karate and if in the marketplace.
• 10:49
  Speaker 4: I watched them do jiu jitsu. I watched them dance
• 10:54
  Speaker 4: with the brat I hold. I watched them whole court,
• 10:59
  Speaker 4: in the lobby and the whole ways. People were just
• 11:01
  Speaker 4: like it was. They were blown away by it. Technology.
• 11:04
  Speaker 3: Again, again, we were making the same point even from
• 11:09
  Speaker 3: a cap table, an investment deployment scenario, It's not in
• 11:14
  Speaker 3: many industries they will even elect you a lot that
• 11:17
  Speaker 3: amount of money, Like think for even for us, we're
• 11:20
  Speaker 3: fighting to get into rounds, and they're lessening the amount
• 11:24
  Speaker 3: that we can get in because it's open subscribe. You
• 11:26
  Speaker 3: can't go to a B to B real estate form
• 11:32
  Speaker 3: and deploy one hundred million dollars easily, like there's not
• 11:38
  Speaker 3: if you're raising funds. There's only a certain amount of
• 11:41
  Speaker 3: avenues that you can even deploy that much capital scale,
• 11:44
  Speaker 3: and that's through tech. You can't do it internationally in
• 11:47
  Speaker 3: other venues in other sector. So for that reason alone,
• 11:51
  Speaker 3: tech is going to continue to thrive because everybody's trying
• 11:54
  Speaker 3: to open subscribe to.
• 11:57
  Speaker 1: The seat round. The Series A, Series B, Series D,