What happens when the biggest technology trend is built on economics that don't make any sense when viewed end-to-end? Eventually, some aspect has to change, but which one?

SHOW: 968

SHOW TRANSCRIPT: The Cloudcast #968 Transcript

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SHOW NOTES:

Tokens are getting more expensive
Nvidia Earnings, Moats and China, Nvidia vs. the AI Labs
Oracle Assures Investors on AI Cloud Margins as It Struggles to Profit From Older Nvidia Chips

WHERE ARE THE BIGGEST AI RISKS?

Jensen Huang (NVIDIA CEO) is convinced that the future will be built on always having the most advanced GPUs and Frontier Models.
Oracle is telling investors that they will significantly increase profit margins between now and 2028-30, although they have low margins now and they don’t make high margins on older chips
The economics of AI (reasoning models, high#s of AI tokens) is in contrast to the established SaaS business model.
Right now everything AI-associated has a high valuation, but these forces are working against each other.
Which one is going to give first?

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Something's Gotta Give on AI Economics

The Enterprise AI Show

Something's Gotta Give on AI Economics