Chamath Palihapitiya

But by and large, it was a very asset light investment cycle.

Now, all of a sudden, the pendulum is swinging violently in the other direction.

I'll give you an example.

You know, when Microsoft convinced the owners of Three Mile Island to turn their nuclear site back on, do you know what their Ford purchase agreement was?

The problem is that's not for an enormous percentage of their overall energy needs.

So if you play that out, and you think these five or six companies all of a sudden are not just spending Jason 700 billion a year of capex, which they are, but then from an operating cash flow, they're going to be spending two x the prevailing spot rate because they just want guaranteed demand into the future.

to the shareholder, and it's not going to stay on the balance sheet.

These companies will now get levered, they're going to get highly sophisticated around the financial engineering, they'll have more debt, they'll have all kinds of different vehicles and term loans and revolvers and all of this stuff.

And so they're going to look like this big bulky industrial business in five years.

And I'm not sure that there's a good valuation case to be made at that point.

And so I think it may be simpler, and this is what I tweeted, to just follow the dollars, like a trillion dollars a year going out of the hyperscalers.

Where is it going?

Just follow those dollars and buy those companies because those companies are already underpriced.

This is obviously reminiscent of something we all experienced.

Nick, can you pull up the Cisco chart I just sent you and put it at max?

We had a massive build out of the infrastructure of the internet in the late 1990s and into 2000.

And what that caused was a lot of aggressive companies to do massive amounts of spending, a lot of retail investors to embrace these stocks like we're seeing with people trying to get into these private companies.

And Sax, look at the 2000 peak of Cisco.

This is the most extraordinary chart ever.

It took them 25 years to get back to that peak.