Baker challenges the notion of truly recurring revenue, noting software was only 7-10% of IT spend in 2008-09.
“A lot of people are baselining off what happened in 'eight, 'nine. And I think that is dangerous because in 'eight, 'nine software was seven to 10 of IT spend.”
Baker warns a true DRAM capacity cycle could see prices increase 10X, not the typical 30-50%.
“If the price of DRAM, if like a DRAM wafer is valued at like a five carat diamond.”
Baker says incredible Anthropic results made him comfortable with Blackwell air pocket risk.
“I think one reason to the podcast two months ago, I got comfortable with that risk was just that you were seeing such incredible things out of anthropic.”