Marks argues tech companies' incremental profitability is enormous because virtual products have almost no marginal cost.
“Their incremental profitability is enormous. When your product is virtual and you're selling one, you're making some money, you want to sell two, there's almost no cost in the second one.”
Marks describes hyperscalers as mostly the greatest companies he has ever seen, engaged in an arms race.
“I would describe, what we call the hyperscalers as mostly the greatest companies I've ever seen. And they're engaged in an armory, arms race.”