Dylan Patel

They weren't even allowed to buy Arm when they were like a nobody.

They were like pretty much a nobody on the grand scheme of things and they weren't allowed to buy Arm.

They totally could not buy any major companies.

They'll buy startups, like they bought a startup that I was like a seed investor in and like an advisor in, but like they can't buy a real company.

So what do they do with all this cashflow?

Sorry, but you're a loser if you just do buybacks.

That's admitting you can't get higher returns on your capital, which is fine.

Like Meta, Apple, Google, they were mature companies for a while.

Guess what?

Those companies aren't going to do buybacks ever fucking again, right?

Or not like ever again, but for a while.

They think there's better ROI for their capital now.

In NVIDIA, if you look at Jensen, he's always flirted with buybacks, but mostly he's been reinvesting in the business.

But you can't reinvest that much into the business.

Yeah, right, right.

He's using his balance sheet to- Win.

Yeah, try and win more, which is an interesting dynamic.

I don't know if there's ever been anything like this in terms of the anti-competitive nature of this, where you backstop clusters.

Corey recently got a deal with NVIDIA where it was like they backstopped a cluster.

Now, Corby would have never built this cluster because it's for like short-term demand and renting GPUs on short-term is like a terrible business model.