00:00Are we being subsidized at the moment by the industry, and you look at the cash flow story, for what
00:05we're using? And does that need to change?
00:07We expect the cost of AI to continue declining. The cost of inference right now is about a thousand times
00:13cheaper than it was last year.
00:15There's a 12 to 24 month hiatus between standing up this infrastructure and then actually producing revenues from it.
00:26Does the infrastructure, does the grid have capacity to meet that demand?
00:29We've been investing in the U.S. now for 20 years, and this is one of the best times to
00:33be investing there.
00:34I mean, we're seeing huge amount of demand driven by, as I say, these big tech just taking sort of
00:39all of our projects.
00:39I normally mention one of these data points, but just one of the data centers that's been built south of
00:44Lisbon, it's going to represent 20% of Portugal's consumption.
00:48And so there are many others.
00:4920%?
00:5020%.
00:50One data center?
00:51One data center. And there's several others that have requested connections.
00:54Six months ago, the market was focused on, are we overbuilding?
00:58The biggest risk now is, can we build fast enough to keep these earnings moving in line with the stock
01:06prices of the entire ecosystem?
01:07The problem, I think, is that the visibility on the future of the whole sector is very unclear.
01:12But just remember six months ago, we were thinking it's the end of CPUs.
01:16Now we're saying, and the CEO of NVIDIA is saying, we need more CPUs.
01:19So things are changing very, very quickly.
01:21NVIDIA is the big one. I mean, it's essentially a macro data point at this point.
01:25And when you consider how narrow the leadership in the rally has been since late March, the tech's been at
01:30the center of that.
01:31And NVIDIA accounts for like 75% of AI infrastructure.
01:34And it shows there's a massive drive in terms of asset allocation into semis, into AI, into the chip sector.
01:42So on an institutional basis, it's very difficult to see where incremental money comes into.
01:47In the meantime, retail investors have been borrowing money to buy into a borrowed, leveraged product.
01:54The thing that I'm watching very closely is on the memory side.
01:57And again, you were talking about this earlier, that memory can be commoditized.
02:01Memory can be ramped up more quickly.
02:03And I watch China there very closely because if they ramp up memory, that's where I start to worry.
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