Gerstner cites Zuckerberg announcing Meta will have 600,000 H100 GPUs by year end.
“You saw that, tweet or thread out of Zuckerberg this week, where he said by the end of the year, they're gonna have the equivalent or this year, 600,000 h 100 GPUs,”
Gerstner highlights Super Micro raised full-year guidance by 40% to $14 billion.
“Super Micro took their full year guide up after the bell today by 40%. 40% to $14,000,000,000. So that's why you're seeing these moves.”
Gerstner proposes dedicating individual nuclear reactors at Diablo to major tech companies for their data centers.
“I could imagine if you had four more reactors sitting here, right, if you could land them at the right price, you could have one reactor for Meta, one for Amazon, one for Microsoft, one for Nvidia, you could have the data center sitting right next to them.”
Gerstner says Jensen confirmed GPU clusters are already at 200-300k scale and will reach 500k to 1 million
“I said, are we already at the phase of two and three hundred thousand cluster scale? And he said, yes. And then I said, and will we go to 500,000 a million?”
Jensen confirmed AI clusters are already at 200,000-300,000 scale and will reach 500,000 to 1 million GPUs.
“are we already at the phase of two and three hundred thousand cluster scale? And he said, yes. And then I said, and will we go to 500,000 a million?”
Gerstner says the UAE-US AI campus announced is five gigawatts, equivalent to 2.5 million GPUs.
“So in in Abu Dhabi, they announced a five gigawatt US AI you know, it's a UAE, US AI campus. It's an incredible architectural campus.”
Gerstner says UAE announced five gigawatt AI campus with NVIDIA, OpenAI, Oracle, totaling 2.5 million GPUs.
“So in in Abu Dhabi, they announced a five gigawatt US AI you know, it's a UAE, US AI campus. It's an incredible architectural campus. It's in collaboration with NVIDIA and OpenAI and Oracle.”
Gerstner says NVIDIA raised total compute buildout estimate to $3-4 trillion from $2 trillion.
“Last night on the call, they said 3 to 4,000,000,000,000 of total compute. He told us that inference was gonna billion x. Right?”
“Tech companies are investing over the course of the next four or five years, it's about 10 times the size of the Manhattan Project on an inflation adjusted or GDP adjusted basis.”
Gerstner says Databricks and Snowflake are accelerating because they provide the data substrate for agentic AI solutions.
“But there are other companies that we own and love, like Databricks and Snowflake, that are actually accelerating. Why are they accelerating? They are the data substrate upon which enterprises are building agentic solutions.”
Gerstner notes AI infrastructure stocks trade at mid-twenties multiples while CoreWeave trades at five times EBITDA.
“All of these stocks are trading in mid twenties in terms of their multiples in the case of something like CoreWeave, which has fallen out of favor, trading at five times EBITDA.”
Gerstner contrasts today's GPU utilization with 2000 when only 7% of fiber was utilized.
“Remember back in 2000, we talked a lot about dark fiber. Only 7% of the fiber going into the ground in the year 2000 was being utilized. 7%.”
Gerstner asserts Elon Musk is the best at converting electrons into AI tokens globally.
“There's no human being on the planet that is better at turning electrons into tokens than Elon Musk.”
Gerstner says Musk is building the largest data centers on Earth and eventually in space.
“Elon is building the biggest data centers on Earth and eventually in space of anybody, and nobody is better at turning those electrons into tokens.”
Gerstner asserts no one is better at turning electrons into tokens than Elon Musk.
“There's no human being on the planet that is better at turning electrons into tokens than Elon Musk. Right? Let me say that again. Because we focus a lot on the launch business.”
Gerstner asserts Elon Musk is the best in the world at turning electrons into tokens.
“There's no human being on the planet that is better at turning electrons into tokens than Elon Musk. Right? Let me say that again.”
Gerstner backs Base battery launch and $1B Series D, calling distributed energy storage key to winning AI race
“Zach, Justin & team are what I love best about the American innovation machine - solving massive problems at scale in record time. Grt product for homeowners & distributed energy storage will be key to winning the AI race. 🇺🇸🚀 https://t.co/CoDXsm7GM0”
Gerstner characterizes data center infrastructure capex as high-alpha, low-beta, while model development is high-alpha but very high-beta and risky.
“I would frame it as capex is high alpha, low beta in data center infrastructure... model development theoretically could be high alpha but it's very high beta — it's a very risky way to deploy capital.”
Gerstner praises Databricks for stacking S-curves and defining markets over a decade as a shareholder
“@alighodsi Truly legendary. I have watched Ali & team brilliantly stack S curves for a decade. Nobody could touch their execution. Their growth & success was not a single product. They didn’t wait for markets - they took risks & defined markets. We are grateful shareholders. 📈🫡”