Azeem Azhar

And so on the other hand, you have these new reasoning models that might burn 10 to 100 times more tokens per query.

So what you have there is these firms, the hyperscalers who are really hungry for compute, they're hungry for compute, not just for AI, but for other workloads.

And they're hungry for that because we as consumers and as businesses want those types of services.

So you've got those on one hand, the grids can't keep up, the GPUs are being rationed between training and serving.

This is a short-term squeeze is my sense and that over as the industry matures, the trade-offs will become much more apparent.

We'll get through some of the blockages around providing power.

We often see that in markets that you get these squeezes and ultimately the market industries take one or two years to reconfigure and to be able to deliver what is required.

It's just not going to happen tomorrow.

I think the third thing is about the economic engine and the question about whether we are going to see results from all of this.

Now, I went into this in some detail in last week, but there's just one thing that I wanted to come back to.

You know, there's a lot of uncertainty in this market right now.

And it's amazing that such huge decisions are being made in the face of such uncertainty.

One good example is that Arvind Krishna, who is the CEO and the chairman of IBM, was speaking last week and he said, look, it costs about $80 million per megawatt because in the last year, tech companies have started to think of their computing in terms of watts and megawatts.

So $80 million per megawatt for a data center.

Now, that's quite a high number.

Most people were using a number that Jensen was talking about, Jensen Huang from NVIDIA, of $50 to $55 million per megawatt.

A few years ago, a couple of years ago, a really, really high-end data center was running at about $20 million.

Now, if Arvind's right, and perhaps he is, perhaps that's IBM's experience, that changes the payback economics quite significantly.

Another thing I want to just bring up is that I talked about the middle of 2026 as being a really key point for evidence to emerge that this technology is more than helpful and seems to be quite positive, but actually is starting to deliver results.

And I just want to unpick why the middle of 2026 is so important.