Gil Luria

It's going to start monetizing more through ads.

Within the next couple of weeks, it's going to introduce a much better model that will become state of the art again, will overtake Google's Gemini, and importantly,

Because it now looks like Google is going to win, that created a panic at Microsoft, Amazon, and Nvidia, who are now going to invest $100 billion in open AI so they can keep a counterbalance

to google so with that investment openai is going to have 100 140 billion dollars of cash they'll be able to pay microsoft and then they'll have money to pay oracle which again has the biggest exposure to openai that's why we're upgrading today

It's still risky.

To be clear, Oracle really painted themselves in a corner when they took on this much business from OpenAI.

And there were two risks.

One is, would Oracle be able to get the capital to start the build out?

And the second risk was, would OpenAI have the capital and the wherewithal

to pay Oracle for those services.

It now looks like Oracle will be successful in the fundraise.

It'll cause, it'll stretch them, but it looks like they'll be successful.

And now it looks like OpenAI will also be successful in their own fundraise, so they'll be able to pay for it.

So those two risks that we've had up until really a few weeks ago, up until a couple of weeks ago really,

are now look like they're going to go away and Oracle will be able to build the facilities and OpenAI will be able to pay for them.

Well, so now it looks like OpenAI will remain in the race for at least the foreseeable future.

And the two biggest beneficiaries by far are Microsoft and Nvidia.

Oracle is a marginal play on OpenAI because of how much of it is of their exposure.

But really, if you look at the stock performance of Google versus Nvidia and Microsoft, that diversion over the last few months is a result of the market deciding Google's won and OpenAI's lost.

That is not the case.