Is There an A.I. Bubble? A Debate.

And right now, the reason we know we're in a compute-constrained environment is because people are making extremely good returns in 18 to 24 months on an asset because they're able to charge essentially Uber surge pricing for their GPUs. And about 50% of their revenues go to the two big A.I. companies,

[in 2025] the hyperscalers [were] spending out of their own cash flows and their own balance sheets. As soon as that starts to change and they go to external finance, you introduce lots more risk. And my threshold for more risk was about 30 percent of the [unclear], which is about the level that we we are approaching now

[Datacenters] may be billions of dollars, but it's a handful of jobs, which is not crazy, like two to six people for a multi-billion dollar facility. And if you do the math [...] I was doing looking at one in New Mexico recently, it's four million dollars in terms of subsidies per job created,

You know, there's been examples of people using large language models to launch claims and small claims court, for example, do we want that to be more to have less friction? Do we want more of that?

So the thing that would make me uneasy would be if I saw a couple of quarters where the amount that American enterprises were spending on AI was ... the growth rate was halving, say, two quarters in a row.