"One good test on the AI bubble is to recognize that Nvidia has now millions of Nvidia GPUs in every cloud. We're everywhere and if you try to rent an Nvidia GPU these days, it's so incredibly hard. The spot price of rentals is going up. Not just the latest generation, but two-generation-old GPUs,"
"The reason for that are the number of AI companies that are being created, the number of companies that are shifting their R&D budget. (Pharmaceutical giant) Lilly is a great example. Three years ago most of their R&D budget was probably wet labs. Notice the big AI supercomputer they've invested in? The big AI lab? Increasingly that R&D budget is going to shift to AI. So the AI bubble comes about because the investments are large. The investments are large because we have to build the infrastructure necessary for all of the layers of AI above it."
"We need more energy. We need more land, power, and shell. We need more trade-skilled workers. This is the single largest infrastructure buildout in human history. Get involved."
AI investment is spreading across nearly every industry, producing sustained demand for GPUs and higher rental spot prices even for older generations. Companies are shifting R&D budgets toward AI, with examples in pharmaceuticals investing in large AI supercomputers and labs. These shifts require major infrastructure: more energy, land, power, shell, and trade-skilled workers. The scale of investment reflects building the layers of AI above the infrastructure and implies a historically large buildout. Diffusion of AI adoption across industries reduces the likelihood that current growth is a tech-concentrated bubble.
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