Mandeep Singh

You're not going to see 50, 60% growth in CapEx going forward from these numbers.

Everyone is, you know, compute constrained right now.

So that's where memory prices are having an impact and all the things that are going on in terms of the chip.

Prices are having an impact.

Azure growth was 38% instead of 39%.

And what they said is, look, we are using a lot of the GPUs internally to develop our new applications instead of renting them out on Azure.

Well, I think my presence here should tell you that the fear and intimidation doesn't work on me.

In the case of Meta, I mean, the core business seems to be accelerating.

And what they highlighted last night was, look, I mean, we are spending all this money, but we already see some return in terms of our ad conversions, better recommendation systems.

And eventually we'll be launching separate products in terms of, you know,

having an ai assistant that will work within the apps as well as content generation tools so the investors seem to have given them a green light in terms of you know investing up front and with the hope that they will launch new products that can that they can monetize you know later in the year

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.

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.

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.

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.