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The All-In Podcast #180 · May 24, 2024 · 85m

NVIDIA Blowout Earnings, AI Bubble Debate, Memorial Day Episode

NVIDIA reports revenue up 262% year-over-year. The besties debate whether AI spending is a bubble or the beginning of a genuine platform shift. Chamath compares AI capex to 1990s telecom spending — which produced the internet despite the bust.

Canon

Despite reporting 262% revenue growth — the fastest growth rate of any large company in history — NVIDIA's stock initially dipped because some analysts expected even more. The treadmill of expectations means that extraordinary performance becomes the expected baseline.

Highlights

The AI bubble debate is asking the wrong question — the infrastructure will be valuable even if the bubble pops
Chamath argues that 1990s telecom companies went bankrupt, but the fiber optic networks they built enabled the internet revolution. Similarly, even if AI companies' valuations crash, the GPU infrastructure being built will enable decades of AI applications.