Sridhar Ramaswamy

But our expectation is that even in 27, this company can grow at least 30 percent.

And at this level of gross margins and profitability, I think that's a particularly attractive valuation.

I am confident in their cash flow growing.

You need compute capacity.

And that translates directly to growth and that translates directly to revenues.

Look, at the end of the day, you know, the spending has to have a return, right?

The ROI is very important, but we're still very early in terms of the AI cycle.

And

Part of the reason we are seeing this elevated spending is that the competition among this big four or five hyperscalers is pretty intense.

It's still the battle for leadership is still not settled.

I mean, just recently, Google took the lead in terms of the large language model performance.

And you have OpenAI, Anthropic right behind them, and XAI.

So the competition is quite intense.

And we don't expect that battle to settle anytime soon.

So it's not so much about ROI right now.

Longer term, it does matter.

Of course, we need to generate free cash flows for the investments that these companies are making.

But at the same time, right now, it's more about the competition and the battle for leadership in AI, in my view.

Yeah, I mean, look, I'm not an expert on software, but at the same time, we are seeing broadening adaption of AI in the enterprise.

His view, as he stated yesterday, is that AI is more of an agentic in nature.