This talk is a wonderful explanation of the new AI build out. It’s amazing technology, but it’s going to bankrupt the people who are building the data centers.
John says, “AI as a tech is freaking amazing.” He understands, because he works with it, that it’s going to transform human society at scale.
John’s argument: high capital cost, low margin production, and open to competition means various people will build data centers, there will be a race to the bottom, every one gets AI, like electricity, and the initial builders will go out of business because the cost of producing the hardware (or software “tokens”) keeps going down. Think of the railroad builders, or the optic fiber build out, same process.
“John Hempton is Australia’s most prominent short seller and the founder and chief investment officer of Bronte Capital, a Sydney-based global hedge fund.”