Jon Quast

I want to point out that the CEO of Anthropic recently said some AI giants are taking reckless hundreds of billions, spending risks on data centers and chips.

He didn't name names, but I think that we're all knowing who he's talking about, his former employer, OpenAI.

These companies are spending a ton of money.

To Matt's point, yes, they're making revenue, they're generating revenue, but they do need money because they are burning cash.

Now, Deutsche Bank has done some research and done some projections.

Anthropic is expected to burn cash over the next, let's say, two, three years.

But it's somewhat modest.

I think that they'll be able to raise what they need.

On the other hand, OpenAI is projected to burn at least $140 billion cumulatively through 2029.

I don't even know if my brain can comprehend that number.

These companies are looking for funds so that they can execute on their business ambitions.

They're already valued at over $300 billion and over $500 billion for OpenAI.

These are some of the largest private valuations in history.

It's only a matter of time before they go to the public markets looking for money.

I think you hit the nail on the head, Tyler.

When it comes to the AI models themselves, if you have a lead, I don't think it lasts for very long anymore because of just how fast the space is iterating.

I'm not really all that interested in the businesses that are creating the AI models themselves.

I'm more interested in the companies that know what they want to do with the models as far as creating a business and monetizing it.

I think that when you look at the companies that you just mentioned, Anthropic, OpenAI, XAI, and Alphabet, for me, Alphabet has the clearest roadmap of what it can do with AI.

That really interests me as an investor.