Dylan Patel

It's terrible if you sign short-term contracts and you just hope and pray you have short-term contracts forever.

And actually, initially, your short-term profits have amazing cash flows.

You bought a GPU and you put in a data center and the power and all that.

The cost per hour over a six-year period

For Blackwell's, $2.

Let's just call it for simplicity's sake, it's $2.

It's not exactly that.

And if I sold it for six months, I could get like $3.50 or $4.

Holy shit, that margin's insane.

But what happens two years from now, three years from now, when I'm still selling six-month contracts or one-month contracts, and the next generation of NVIDIA chip is out, and it's 10x faster for 3x the cost.

Okay, so now, naturally, the price of this should tank.

The other way to do it is, hey, I have a long-term contract of...

The other end of the spectrum is what Nebius just signed, which is I'm signing $19 billion to Microsoft that will pay me no matter what.

The market literally believes Microsoft will pay its obligations before the US government because it's like literally a cheaper bond rate, which is like insane to me, but whatever.

This $19 billion has a huge gross profit.

And it's not exactly $3 and it's not $2, but like the margins here are really good.

Nebius is going to make at least $6 billion of gross profit off of this.

I would do that all day.

And CoreWeave did until Microsoft stopped going to CoreWeave.

But CoreWeave's turned around and they found other customers and all these things selling to Google and selling to OpenAI.