Dwarkesh Patel

Do you buy, so these labs are now projecting revenues of 100 billion in 27, 28,

And they're projecting revenue keeps growing at this rate of like 3x, 2x a year.

And how do you see this shaking out as you do have this network effect with conditional learning and things on the model level, maybe you have equivalent things at the hyperscaler level as well.

And do you expect that the countries will say, look, it's clearly one model or a couple of models are the best.

And so we're going to use them, but we're going to have some laws around, well, the weights have to be hosted in our country, or do you expect that there will be this push to have, it has to be a model trained in our country.

Maybe an analogy here is like people would, you know, the semiconductors is very important to the economy and people would like to have their sort of sovereign semiconductors, but like TSMC is just better.

And so semiconductors are so important to the economy that you will just go to Taiwan and buy the semiconductors.

You have to.

Will it be like that with AI or is there...

So just to make sure I understand, the idea here is,

Each country will want some kind of data residency, privacy, et cetera.

And Microsoft is especially privileged here because you have relationships with these countries, you have expertise in setting up these kinds of sovereign data centers, and therefore Microsoft is uniquely fit for a world with

more sovereignty requirements?

And just to add to the question, one concern is, look, we're talking about how AI is becoming this sort of industrial CapEx race where you're just rapidly having to build quickly across all those supply chain.

When you hear that, at least up until now, you just think about China, right?

This is like their comparative advantage.

And especially if we're not gonna moonshot to ASI next year, but it's gonna be this decades of build outs and infrastructure and so forth.

How do you deal with Chinese competition?

Are they privileged in that world?

I think that's a good note to end on.