Gerstner cites hyperscaler revenue growth: Amazon 28%, Azure 39%, Google 63%, and Anthropic at historic rates.
“28% revenue growth out of Amazon at tremendous scale or 39% for Azure, 63% for Google, extraordinary. And of course, Anthropic is adding revenues at rates we've never seen before.”
Gerstner notes hyperscalers grew collective revenue from $150 billion to $350 billion in just eight quarters.
“Let me just give you a statistic. It's just eight quarters ago that collectively they were doing a $150,000,000,000 in revenue. Now they're doing $350,000,000,000 in revenue.”
Gerstner reports Oracle, Amazon, and Microsoft are all moving forward with nuclear-powered data center projects.
“Amazon is buying this nuclear powered Talon data center facility, and now Microsoft this week announces with CEG that they're going to bring 3 Mile Island out of retirement.”
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 hyperscalers' total capex is now at $200 billion, raising questions about return on investment.
“In fact, I think if people are gonna be critical of anything, a lot of people are looking at the total CapEx of the hyperscalers now at $200,000,000,000 and saying, when are you gonna get a return on the dollars that you're spending?”