Palihapitiya suggests investing in companies receiving the trillion dollars annually spent by hyperscalers, claiming they are underpriced.
“Like, a trillion dollars a year going out of the hyperscalers. Where is it going? Just follow those dollars and buy those companies because those companies are already underpriced.”
Palihapitiya predicts hyperscalers will become heavily leveraged industrial businesses within five years due to infrastructure spending.
“They'll have all kinds of different vehicles and term loans and revolvers and all of this stuff. And so they're gonna look like this big bulky industrial business in five years.”
Palihapitiya predicts hyperscalers will pitch governments on becoming AI gatekeepers using KYC and audit trails to control access.
“And the very simple opportunity is to convince governments all around the world, not just America, that they should be the gatekeeper.”
Palihapitiya argues neoscalers cannot match hyperscalers' decades and trillions invested in infrastructure, making their data centers obsolete.
“It's an impossibility, Jason. So you can take all of those data centers off the map.”
Palihapitiya states Meta, Google, and Elon price AI tokens at $1-1.50 per million versus Anthropic's $26-56.
“Zuck is about to sell it to you for a buck 50. Demis and Sundar are trying to sell it to you for a dollar.”
Palihapitiya warns all clouds are infantile versus hyperscalers, most neoclouds just directional LPS bets without real tech
“@thetimmorgan All clouds are very infantile relative to the hyperscalers. Doesn’t mean they can’t win over time but the road will be bumpy. Most neoclouds are mostly just directional bets on LPS rn. No real tech and uptime to speak of…”
Palihapitiya warns all clouds are infantile versus hyperscalers, most neoclouds just directional LPS bets without real tech
“@thetimmorgan All clouds are very infantile relative to the hyperscalers. Doesn’t mean they can’t win over time but the road will be bumpy. Most neoclouds are mostly just directional bets on LPS rn. No real tech and uptime to speak of…”
Palihapitiya expects hyperscalers to monetize services like KYC around models not tokens, holding 6GW through 2029
“@seagoat73 Hyperscalers want 1000 models to exist and thrive. They will make money from various services around models (like KYC) not just serving tokens energized land will always be valuable.”
Palihapitiya warns all clouds are infantile versus hyperscalers, most neoclouds just directional LPS bets without real tech
“@thetimmorgan All clouds are very infantile relative to the hyperscalers. Doesn’t mean they can’t win over time but the road will be bumpy. Most neoclouds are mostly just directional bets on LPS rn. No real tech and uptime to speak of…”