00:00Is this clarity a good one for you when it comes to the Microsoft thesis?
00:03Oh, sure. I mean, you know, partnering with OpenAI, OpenAI is probably one of the most significant companies of our decade, of this decade.
00:11And to be able to partner with OpenAI and increase the time horizon over which the partnership will exist was important for Microsoft because the underlying technology is being developed at OpenAI.
00:26So, you know, welcome. We're very happy to see it. The extension of the data center packed also an important step in the right direction.
00:37$250 billion worth of Azure. Yeah, that's right. And so moving forward, I mean, there was a lot of kerfuffling that we had heard between OpenAI and Microsoft.
00:46I'm glad that they're over it. I think they'll make great partners.
00:49Once again, this is about deal making. Once again, this is about OpenAI just trying to ensure that it's got the bandwidth of compute that it needs with Microsoft being able to see real revenue from generative AI in the here and now and still have access to the IP.
01:04When we keep thinking about these deals, some of them being talked of as circular, has it given you any pause, any cause for concern?
01:11Actually, quite the opposite in that maybe we should be asking, what is it that OpenAI actually thinks the revenues can be that they need so much capacity and back into perhaps, you know, how big is this market and how are they framing it?
01:27How is Anthropic framing their market? You know, last week there was a really interesting article about how OpenAI was hiring investment bankers where they're coding a junior investment banking analyst.
01:39What is that worth? What is that worth to a bank that may hire an OpenAI digital banker?
01:48And if you do this across the economy, I think it becomes clearer that, you know, the opportunity set here is very significant.
01:58It's not tens of billions. It's hundreds of billions, if not greater.
02:02We are at a new record high on the day. We are seeing NVIDIA push higher ahead of more announcements coming out of GTC.
02:08We are seeing earnings anticipation, all of some of the major players of Magnificent Seven this week, the key five coming forward.
02:16But when you're looking at your investment playbook, are you going to keep putting money into a Microsoft, into an NVIDIA, into an Amazon, into Alphabet, or is it a broader remit now?
02:25I think it has been a much broader subsection that we have been investing in, mostly playing on the infrastructure side.
02:34At some point, you're going to have to pivot from not only infrastructure, but into those companies that are actually deploying and getting the benefits of AI.
02:44That is still on the come because we are still in this ramp of building infrastructure.
02:50I mean, we can't actually deploy artificial intelligence to companies and get that benefit until the infrastructure is in place.
02:56So I think there's another, you know, two to three year build out on the infrastructure.
03:01I think as we go through this earnings season, we will see everyone is going to be raising their CapEx estimates next year that the numbers probably go up again.
03:10And you celebrate that rather than seeing the revenue going up and to the right?
03:15You celebrate both. Right.
03:16You need to see the infrastructure, people spending CapEx, which will eventually come as revenue to them over the next few years.
03:26But you do have to invest first in order to see the gain.
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