“But I think by 2028, I would expect that the pipeline will either be closed or significantly reduced and that will have a big economic impact.”

“So I think there's 500 to 1,000 times the need for this. When that happens, this compute is going to go wherever it needs to go.”

“And the net result is that the total demand just keeps going up. And the total revenue and market size keeps growing. Also, just to reiterate a point that you made earlier in the program, the new applications that are coming all consume a lot more tokens than the ones that we started with, right? Like agents use a lot more tokens than prompting.”

“You're absolutely right, Jason. The problem is the regulatory pushback. The amount of approvals and the ability for utilities to find the staff and the ability to actually turn these things on and then the ability to get the capital equipment you need, it just isn't there right now.”

“The token usage is 500x. That means we're going to have not enough compute, and everybody's got to build out it completely wrong. There won't be enough.”

“But generally speaking, if AI is delivering value to the customers, I think this shows that there really is true productivity arising from AI, that across the whole value chain, there is such margin to be had, so much value being created, all the way through to the customers”

“because I think demand is insatiable. There's enough demand, there's more demand than you and I can imagine. So yes, I understand the enterprise diffusion comment, but it's going to get diffused. The question is, if every company in the world today said, I'm in, I'm ready, I'm embracing AI, let's go as fast as we can. There's not enough compute in the world to satisfy us.”

“I think we're capacity constrained enough through the entire pipeline.”

“So we know the demand is off the charts right now. We're seeing other indicators. So, for example, old GPUs, like even the H100s or the A100s, which are several generations old, they're still renting at premium prices right now.”

“I said, yeah, like, we're out of everything, you know, till 2028 He's like, oh, it's beyond 2028 Like, I don't think we get stuff back. Like, end of 2028, maybe. So everything else is sold out.”

“Yeah, here's the part I agree with, is it's not just about the capability of the model, it's about how much compute you have to run it. And we want to have more compute than our adversaries.”

“Yeah, it's an opportunity to sell into the government. Now, Google and Amazon Web Services, Crusoe, whoever, can just sell more servers.”

“Therefore, we need to increase our investment in AI to maintain our cyber defense capabilities, both at the enterprise level and at the government level and potentially even at the civilian consumer level. So I think that the cyber defense necessity actually mandates that we continue to build out data centers and support it.”

“No. I think that Sacks is probably right on the margins. I think the bigger point is what he said before is, man, the entire economy is effectively levered to this AI trade right now.”

“To the extent that compute gets scarce, and we're in a compute crunch, just the fact that they've made these huge investments, they're building out so much capacity, and they have those economies of scale.”

“AI is a tool of leverage that takes tens of thousands of years of work and reduces it down to minutes or seconds.”

“the reason why it's not going to be stopped is because consumers are adopting it ... Why are the data centers getting built? Why do people want to build them? It's because the demand is there from consumers and businesses. ... the adoption is pulling this whole thing forward”

“we are supposed to be in the middle of an enormous financial buildout to support AI... thank God, we have companies like Nvidia, and Google, and Microsoft, and Meta, and Amazon who take on that burden... there's so much chirping, by the way, on the internet about the balance sheet of Nvidia, and blah, blah, blah. And I think people completely missed that these guys are putting the entire US economy on their back.”

“So, what is the takeaway, I think, for the larger market here? It is that the AI boom is continuing. The other narrative that's getting shredded today is that this AI CapEx is a bubble. It's basically gonna end very soon. And what Nvidia is basically saying with its numbers and forecasts is actually, this AI CapEx is gonna continue well into the future. It's got real legs. And the amazing thing is that after these numbers, even despite the 8% bump, Nvidia is only trading at 12 times earnings.”

“That causes people to be less likely to invest in all the data centers. Data centers themselves are being shut down. Where does that leave frontier model companies? They're the most at risk. ... we are now in a very precarious situation that we could have frankly avoided.”

“There is no world in which I don't see corporations spending five or 10 percent of the salaries of their employees on the equivalent in tokens... you are looking at $8 trillion in AI spend just in the United States. It is obviously going to happen. And if I am wrong and it is half... that is kind of where these companies are trending.”

“The overwhelming majority of tokens are profitable for everyone in the chain, everyone. Anthropic is generating cash... When I hear these macro and value investors making an assumption that tokens are subsidized and this is all going to collapse in some circular financing bonfire, they're just wrong.”

“The biggest risk is that you get a glut of compute and you get an overbuild. ... In a weird way, all the political headwinds, ... will almost guarantee that there's not an oversupply relative to the exponentially growing demand.”

“The demand exists in the world today. I think it will exist in the world for, well, the next 12 to 24 months, ... I suspect this cannot keep up at this pace more than another two years or so. ... Famous last words, I don't see it today over the course of the next 12 to 18 months.”

“Capex is high alpha, low beta in data center infrastructure, that capital. And model development theoretically could be high alpha, but it's very high beta. It's a very risky way to deploy capital.”

“Is this correction driven by fundamentals, or is it driven by momentum? My view is that it's driven by momentum... the key question is the capex being invested in the AI boom — is that real or is it misguided?... My view is that it's real. I think there will be a return on all of this capex... this is temporary market volatility amplified by leverage.”

“The most incredible thing is how extreme the price is at the front end of the curve, when you have verifiable, energizable power today. ... about 40 percent of all these projects are getting mothballed and stopped, and so it's creating this massive deficit of available energy to ... the extent that you actually want drug discovery, or ... we may actually not be able to service it”

“I sat down with my CTO today... right now, our token costs are doubling every 45 days... [and the downstream productivity?] maybe 5% max... you need to use a lot more tokens to get to this next iteration of improvement because we've effectively already asymptoted... everybody in the next three or four years will for sure go through [this reckoning]... [and per Fable's own numbers] the actual ROI [of AI on S&P-493 EPS] was somewhere between 1 and 2%.”

“Two years ago, I bought 2000 acres in Arizona with a partner. ... allowed to build a two gigawatt data center. ... I just put in an offer for another ... when I started this project, it was like four or five billion and it's increased by”

“There was an economic and capital mode to training that is going away. ... we're getting these domain specific architectures at the silicon layer and then second, we're rebuilding all of the core components. ... the entire training complex in C and it's an order of magnitude increase ... why would we stick to the $10 billion training runs when we can have the $10 million training runs?”

“if OpenAI and Anthropic call it $100 billion of ARR now, with 80%-ish gross margins on inference, the returns are there. ... if we add in Gemini, we add in Cursor, we add in XAI, we add in Open Source, it's not hard to see $200, $300, $400 billion of ARR at the end of this year at high margins. ... there's going to be a really strong ROI this year, even excluding”

“The bull thesis for AI just got validated in a single afternoon... $725 billion in CapEx guidance in 2026 from four companies... more than 2 percent of GDP... AI was 75 percent of GDP growth [last quarter]... AI is now synonymous with the growth of the American economy.”

“In just two years, computation went up by a factor 10,000x... We haven't even started scaling yet. We are absolutely at a million x... If that $500,000 engineer did not consume at least $250,000 with the tokens, I am going to be deeply alarmed.”

“I am building a one gigawatt data center in Arizona. ... When I greenlit that project, I thought it was going to be a four or $5 billion investment. ... now it's upwards of $50 billion for the powered shell, ... it's about a five to six-year payback just to get into the money. And then it's about 10 billion a year.”

“there's a tremendous latent demand for the ability to generate code in large quantities, ... To be able to buy code on a metered basis as the cost per token keeps going down, it's kind of an amazing deal.”

“I have a small software company called 8090... our costs have more than tripled since November of 25. Between the inference cost that we pay AWS, which is ginormous, between our cost with Cursor, between Anthropic, we are just spending millions.”

“I think you're going to see a 10-axing in the demand for tokens, but I also think you're going to see a 90% price reduction in the cost of an output token, probably by the end of this year.”

“We're getting to a place where we have to basically now say, what is the token budget that we're willing to give our best devs? ... NVIDIA and GROK and Google and AMD, they're all incentivized to massively ramp up the energy density and massively push down the token cost. That's going to happen. But it doesn't change the trend.”

“when you put these two things together, I just think it's going to create a huge acceleration in the ability for this entire infrastructure layer to get much cheaper and much more valuable, ... a lot more developer pull. You'll get a lot more applications being built, billions and billions of more people using it.”

“Google and Facebook and Microsoft and OpenAI and X are not going to be in the business of generating negative revenue output tokens just for the sake of it... they are already keenly aware of the value of these output tokens. They know the revenue it's generating.”

“is incorrect. There is value creation because they are generating revenue from those chips this year, six years later. ... Burry is incorrect in thinking that they're hiding anything because it's all there,”

“The business models of these companies are just far too good ... These are not the seven companies that are going to cook the books. ... All of this creates more and more utilization. So these things last longer and they also need more.”

“These seven and eight-year-old TPUs and GPUs that are sitting in the data centers are still being used, and they're being used at 100 percent utilization. So that actually justifies and validates the depreciation schedule being much longer versus shorter. And I actually think Michael Burry's got this wrong.”

“I'm betting in the super cycle. This is the biggest super cycle of all of our lives. I'm an investor in OpenAI and Anthropic and Google and in Microsoft and NVIDIA, ... owning all of compute like we have for three years and this AI trade has room to run.”

“We just came off a quarter of 3.8% economic growth, of which 40% was attributable to AI... right now I'm very optimistic about this boom.”

“I would bet the over on demand, because I think that it's very hard to underwrite demand for applications that don't exist yet, but I'm confident they will be there.”

“There is not a dark GPU in the world today. There's not going to be a dark GPU in the world next year... We see about $100 billion already in incremental generative AI revenue in 2026. That has to grow to well over a trillion by 2030.”

“there was a correction in sentiment towards AI, but I think it was a healthy correction. I don't think this was the beginning of a ... we're still probably early to the middle of this investment super cycle.”