Mandeep Singh

They have their own chips, but clearly they are trailing when it comes to the likes of

Google TPUs, and that's where I feel the streamlining of operations is probably the first step, but they have to protect their cloud share because clearly there is more competition on the AI infrastructure.

The question that investors will ask them is, how will they retrofit their existing IT infrastructure to pivot towards AI?

And that will be a big change, even though they have the cloud share, like there are a lot of new clouds that are playing in the AI infrastructure right now.

Revenue per employee will be a big metric for all these hyperscalers going forward.

In the case of Amazon, I mean, they are still the largest public cloud provider.

The question that investors will ask them is how will they retrofit their existing, you know, IT infrastructure to pivot towards AI?

when you think about what is existing in terms of ai data centers these are 50 to 100 megawatt data centers we are already talking about power requirements going 10x to 1 gigawatt and so how will a 70 to 80 year old grid supply electricity which is 10 times more than what these data centers already consume

These hyperscalers spent almost $400 billion plus in capex last year.

And a lot of those investments are going to come online in the next 12 months.

So you have to ask yourself, how are they going to source the power?

And that's where I think some of that inflation when it comes to sourcing that power is going to show up in this form.

The trend is more towards specialization.

What Anthropic has shown is you can focus on a particular area and really improve the model to the point that you can gain a lead.

So that's where I think OpenAI will do well, as will Gemini, Grok, and all these frontier models.

At the CES, Amazon launched Alexa Plus.

So you know there's a lot going on with agentic commerce and voice, and Apple has to obviously step up in terms of

whichever LLM they want to use.

And to my mind, you know, Google is the most obvious choice.

The trend is more towards specialization.