Paul Kudrowski

And that's going to get cut in half.

But bro, that's still a lot of money, right?

So that's the argument you will get from many on the other side of this, that even a sharp decline in the margins on the rentals of these GPU assets still doesn't affect the amount that I'm going to get back.

Now, the problem with that is, is it doesn't get to the question of, okay, fine, where is that money coming from?

Where's the money coming from that's the rental?

The rental price is coming from somewhere.

Most people I talk to are not, most people probably you know as well, typical consumers, are not paying for ChatGPT, right?

Some enterprises are and others, and ChatGPT's built a nice little business on it, but they're still going to burn, what was it I saw, like $100 billion over the next two years, I think was the number?

So the deeper problem is there's a great subsidy going on right here.

So the data center rental income is coming from people whose economic models currently don't work and they show no sign of it working in the near future.

So, yeah, they're continuing to earn margin as a data center provider.

provider because of the monies that they're being spent.

But that still reflects a massive subsidy to the people who are paying the data centers, even at half off prices.

And so for me, that's the way I'd be wrong.

The way I'd be wrong is that margin doesn't continue to decline.

That even though it declines, it doesn't decline back to the point where it's no longer economically viable, given rising costs of operating a data center and declining costs or declining prices of being able to rent them.

that those two don't come into line.

I think they're going to come into line and it's going to become a deadweight loss business.

The argument from the other side is no, it won't.

Costs will continue to improve.