Jordi Visser

It is very difficult for companies to change and be able to pivot because they'd have to bastardize their own product and compete with it.

And so what they do is they're trying to figure out ways.

Microsoft has two issues.

One is they don't have a model, meaning they're not one of the frontier model companies.

So they're competing to some degree or they have to use their model.

The second thing is, though, they're in the cloud business.

Well, you know what the cloud business needs?

It needs data centers.

You know what the problem is with that?

They're competing again with the model companies, which are basically able to sell this stuff and are seeing the revenues grow.

So Anthropic this week came out and said the revenues for next year are likely to be $55 billion.

This was a company, I believe it was 1 billion, then it was 10 billion.

Now they're forecasting 20 billion for this year.

I mean, it'll be above 20.

They're raising money.

I heard it was five or six times oversubscribed on most podcasts.

They're raising 20 billion.

This is just a scenario that software companies have to be rerated.

There is definitely uncertainty five years from now whether they'll be able to compete.

So you go back to what I said about long duration assets.