Travis Hoium

Are these big hyperscalers, the big tech companies that I mentioned, are they just trying to bludgeon these startups that could have potentially been the disruption to their business model?

Think Google in particular, but even companies like Amazon.

I mean, if people go to ChatGPT to shop, that's bad for Amazon.

If they're shopping at ChatGPT, companies aren't spending as much money on meta ads.

So they all have an incentive to not disrupt the status quo.

So is this money just basically saying, hey, look, you're not going to disrupt us or replace us by having better AI than we do?

John, the other piece is we got some pretty amazing information about how much these hyperscalers cloud businesses are growing.

The one that really stood out to me was Google Cloud GCP grew 48% and had a 30% operating margin.

It's almost like you have to hold multiple things in your head.

Oh my gosh, these numbers that they're putting out are incredible.

The fact that Google Alphabet is going to spend $180 billion on capital expenditures

But also, they have this business, which is serving third parties, that's growing at 48% in an incredibly high margin.

So is this an area where they're all sort of doing the rational thing by going, all right, we're going to go all in.

And the worst thing that can happen to us as a hyperscale, as a huge company, is, you know what, in 2027, we'll pull back.

We won't spend $180 billion.

We'll just spend $100 billion on CapEx.

So the margin could potentially get competed away over time.

All right, let's get to the big question that I think we're all asking.

And that's the bubble question, the overspending question.

Lou, I've always heard about bubbles being talked about as, you know what, it's not really a bubble until we start adding debt to the equation.