Simon Belanger

So that's the big challenge, I think, is actually figuring out where, like, what's the trade, right?

It's very easy to be directionally right.

Timing's the hard part, I think.

Well, that was like the internet, right?

That was like the internet when... I mean, that didn't stop the internet from...

Being in it, like creating the dot-com bubble and people picking the wrong players, like a lot of these companies could just not exist in many years, right?

Some might like over lever and get destroyed on this CapEx spend, like everybody's taking on debt to do it, right?

Yeah, it didn't prevent that from happening in, you know, 20 years ago.

Like everyone's always terminally online on their phones at all times with a tiny little touch screen in their pocket, talking to each other, don't even have social lives outside of this stuff.

Like, yeah, I mean, that's, that would have been a hard reality to believe.

that you know i think it's gonna be something that really will change the world but still doesn't mean we're not in a bubble right now but right i think yeah it doesn't that doesn't mean that the valuations are correct like no especially that we're seeing now like the token maxing era you're starting to see a lot of businesses actually start regulating how much their engineers can use ai to code because it's getting too expensive like now that they're switching to api plans and stuff like

AI, the economic incentive to use AI at scale made a lot more sense when it was being subsidized.

Will it be as valuable of a tool if those token costs aren't heavily subsidized?

And the answer appears to be no.

Or will the adoption be as high?

If the answer to that question is no, then the models really need to change on how much revenue these companies, or maybe not revenue, but how much use is happening from these companies.

And then eventually, I think IPO ends up being a bit of a catalyst.

And we talked about this on the BMO podcast as well, but like-

These IPOs now, these companies don't have to be accountable really to anything right now.

They just have to be accountable towards progressing towards an exit.