Gil Luria

But in terms of borrowing, especially if we're talking about Microsoft, Amazon, Google, and to the extent Apple ever gets into the game, they have so much cash flow, so much cash on hand, that them borrowing is more a flex situation.

than anything else right the banks always prefer lending money to companies that don't need to borrow and this is a great example of that google doesn't need to borrow which is why it's so easy for them to borrow a lot at a very inexpensive price and again signal to the market that they have a lot more capacity than just their cash flow which by the way is huge anyways

Yeah, Google has the cash and the cash flow to support paying back that interest for a very long time.

By the way, Google has been down the last couple of days.

There's starting to be a reversion to the mean, right?

Google's multiple is now in the 30s.

Microsoft and NVIDIA in the low 20s.

In spite of the fact that the growth rates are similar, and I would argue Microsoft and NVIDIA is just as

well-positioned in the AI race.

So we're starting to see a reversion to the mean.

Oracle is very different.

Oracle really painted themselves into a corner.

They committed to an infrastructure build-out that required them to raise a lot of capital in order to execute.

They don't have excess cash flow.

They're really stretched right now.

But the good news is it looks like they will be successful in the raise, which means they'll be able to deliver

And if OpenAI can raise their own $100 billion by the end of the quarter, which is the most important thing in AI right now, OpenAI will be able to pay for that Oracle capacity, and we can all breathe a sigh of relief for Oracle, which, again, really was in a little bit of a bind.

Yeah, so we sounded the alarm when the stock was $345, trading 45 times earnings, and OpenAI looked to be losing momentum.

What's happened since then is, first of all, Oracle stock went down to 143, 18 times earnings.

And then OpenAI, very importantly, a few things happened there.