Sacks cites $350 billion hyperscaler capex this year, heading to $1 trillion by 2030 per Jensen.
“Again, just the top four hyperscalers, $350,000,000,000 of expected capex this year. On its way, I think Jensen said 1,000,000,000,000 by 2030.”
Sacks says hyperscaler capex will exceed $700 billion this year, up from $350 billion last year, over 2% of GDP.
“This year, I think we were supposed to have $660,000,000,000 of hyperscaler CapEx up from $3.50 last year. I think there's now the new estimate is is gonna be over 700.”
Sacks details that Elon plans to add six to eight gigawatts requiring $300-400 billion capex, and suggests NVIDIA is creating credit lines through banks and private equity for downstream purchasers.
“So, just to take one example. Elon plans to add somewhere around six to eight gigawatts next year. We know that that would cost three to four hundred billion dollars of Capex. The company just raised a hundred billion in its equity and debt offerings. So obviously, they would have to go out and finance that somehow. And as we talked about on our previous episode, the simplest way to finance it would be to get seller financing from NVIDIA. . .so now, Jensen is creating, you could say, the line of credit using these big banks, using these big private equity shops. And he's making that available and that's going to now benefit all these downstream purchasers.”
“The “AI capex is a bubble” and “SaaS is dead” narratives getting shredded this morning. NVDA +8%, SFDC +20%. NVDA: $96B q2 revenue (+106%), ~$60B net income, 75% gross margin. Highest core-business quarterly profit ever. Guided FY28 rev +70% vs Street exp 45% — and that’s a”