Baker describes adopting a multistage venture strategy from mentor Antonio Gracias.
“But his whole strategy a lot of his strategy for venture, which I ruthlessly copied, is around the idea of their profound advantages towards being multistage.”
Baker explains Hock Tan's model is opposite of Dell's: find drained profit pools with no competition, enter, and raise prices.
“Hock's model has always been to find a profit pool that has been drained and there's no competition left, enter that and jack prices up.”
Baker argues breaking memory supply agreements could destroy franchises due to allocation loss risk.
“I just think given that this is, the axis around which kind of everything is revolving, man, like, might blow up your entire business and your franchise by breaking an LTA.”