Baker says GPUs got 50x faster while data centers only 4-5x faster, creating investment opportunity in infrastructure.
“GPUs have gotten 50 times faster, and the rest of the data center has only gotten four to five times faster.”
Baker compares running GPU clusters to the operational complexity of building $50 billion retail chains.
“And people think, oh, that can't be a durable competitive advantage. Well, I was a retail analyst in the year 2005, and I observed all you had to do to create a $50,000,000,000 market cap retailer in America in any category was be able to run 1,000 stores in 50 states”
Baker specifies orbital compute is rack-sized satellites weighing 3,000 pounds, not building-sized data centers in space.
“A black well rack weighs 3,000 pounds. It's eight feet high. It's four feet deep, three feet wide. It's racks in space and SpaceX has showed you an illustration and it's a rack.”
Baker suggested the AI compute business opportunity extends far beyond current Google and Anthropic deals, potentially reaching $100 billion in annual revenue near-term.
“If you're a $SPCX shareholder take notes 📝 Gavin Baker, an OG investor just said in VC terms that the AI compute business is about to get WAY BIGGER than just the Google & Anthropic deals He's implying like $100B in rev/yr on the table near term if I'm reading it right”
Baker claims Georgia, Indiana, Michigan, and California are cutting electricity prices because of data centers.
“Georgia, Indiana, Michigan, California cutting electricity prices because of data centers. https://t.co/QoVbyIYNxK”