Are We Building a Permanent Tech Prison? NVIDIA’s $500B Plan Explained

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1:00and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more. They don't realize smart people use smartphones, huh? Send through BS they thought was gonna slide. Download TextNow because it cuts out clownery. You can literally activate it from your couch. nationwide 5g with the same towers the other companies use pay what you want or not at all you're in control show these ridiculous carriers we ain't paying for stupid because we're way too smart to pay dumb free app-based talk and text via the text now app requires wi-fi or data connection data plan sold separately 5g where available when traveling for events or festivals throughout the country every dollar matters we compare flights prices hotel rates and restaurant ride options so why wouldn't we compare rides personally i always check lift before booking a ride prices can change throughout the day depending on traffic weather and what's happening in the city if you're headed to a concert out to dinner or catching up with your friends on a friday night taking a few seconds to check lift could leave you with more money to enjoy the experience save money check lift video let's do it this is 500 500 billion ai investment I'm going to be very honest.

2:28I already picked a good lesson in when you have battles too. You can't have too many. So I picked my battle with Tim Cook and Apple. Regardless of what I may think about the circular investment, I'll never say nothing bad about NVIDIA. So I'm an NVIDIA vendor. I do think it's very interesting to have this partnership between Apollo, Blackstone, Goldman Sachs, all amazing companies on the publicly traded markets, all good investments long term. I do want to see how this develops. I was interested on your thoughts on what you think of it. Is it a good sign that the industry is going in the right direction?

3:04Or is there like a continuation of the circular investment that is now getting broader since all the banks are involved? Yeah, I think on the bear case, I think you have to look at it, right? That circular investment piece. I think the bull case, I think it's encouraging. when we talk about capex we're usually talking about cash flow from companies and yeah capex is funded and we keep talking about this trillion dollars that's going to be spent this year and that's coming predominantly from these four hyperscalers but when you start hearing institutional firms right apollo like you said blackstone goldman sachs and a few others that means that institutions are now putting money in here and it won't solely be hyperscalers it'll be in addition with so 500 billion is nothing to sneeze at the fact that nvidia is has their hand in this as well i don't i mean what else can we say about this company right like their most popular it's it's it's almost i don't know what other approaches we can give to it they're being in this because obviously when institutional investors are going to look, the first thing that they're going to need is compute.

4:17And so you keep hearing this talk, it's compute will be a tradable asset in the future. It's asset class. Don't asset class in every step that gets taken. You can slowly see that that is becoming more and more likely. Right now. The question is that 500 billion dollar investment can they get a trillion dollar return that one to two ratio and that's scary because i personally like a 5x return i don't think we're going to get a 2.5 trillion dollar return out of that but i never have anything bad to say about nvidia and for those who go ask A price that I do like for NVIDIA is$190.19. If it falls to the area, that's a place I would like to buy.

5:09But when I'm looking at return tables, it's going to be hard to get a 5 or a 7X out of a$500 billion investment. Not that that may be their goal, but if I don't see a pathway to getting there, that is kind of scary. Yeah, I think it's encouraging, right? So you said Apollo, Blackstone, BlackRock, Brookfield, Goldman Sachs and KKR we knew that the conviction was there because we knew that the hyperscale is the smartest people in the world, the smartest CFOs and some of the smartest engineers in the world of tech are behind that investment now to have the biggest institutions in the world also be in that same investment for me that's a bullish sign do you feel the same way or is there still like a bear case?

5:56No, no, no, absolutely because Because even at that level, and I talked about it on stage, like the put-call ratio of a stock matters how much they're invested in, what percentage into a fund. But when you see, this is kind of like a post-IPO to a certain degree. Like when we went on Wall Street, you see all the banks collaborating. When the big boys get together and they're putting in$50 billion at a time for a project, they're going to ensure that it works. this is almost like a digital infrastructure bill um a different version of build back better and so long term i do think there is a long-term case and it's also showing that it's the last big frontier of something you can invest in at scale with that i'm looking for a return into five or ten years out so yeah it's definitely a bullish case for the amount of money placing that's a great these are not the bottom of the tier ranks they're all putting money in together and and no hedging on it.

6:58They're not investing in this and shorting AMD. They're positive on the stock and then positive on the development of it. So that's a great sign. You bring up a great point. How many times will we see this level of investment from this many big players for the same technology? That tells you the importance of it. They're not just saying, hey, we're doing this for charity. They're doing this because it's not just$1 trillion they're looking for. They're looking for how do we get to$5 trillion? How do we get to$10 trillion? yeah good point let's talk about how long can tech lead

7:35um you want to start no yeah i i know a lot of industries have a shelf life um if you look at railroads if you look at oil and gas and you can argue to a certain degree energy and oil and gas still runs the world through the partnership through tech? I think it's a great question, but it's also misaligned if you are a great long-term investor. Tech is going to run our lives for the next 100 years. And if the oligarchs have anything to do with it, we will be in a permanent tech prison. There's been some conversations on if tech is going to stop being the number one consideration in an investment portfolio.

8:16And the truth is, our greatest export to the world in America for the publicly traded markets is our technology. You can make the argument it's a good or a bad, it's a destroying connection and families and all that. That's another conversation. But in a worst case scenario, tech probably has like another 60 years to run. And then if once we get out to the 2090s, do we think tech will be less or more? So sometimes we can overcomplicate investing too much and then we're trying to time once again. That's a big short mindset. When is this industry going to fall apart? My short answer is never. Quick one before you jump back in.

8:55You're listening for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use. ChatGPT for Business can help. Chat GPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in Chat GPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using Chat GPT for Work. Download the Chat GPT desktop app or contact sales to learn more. Ernest, what's up? Look, building wealth isn't just about making money.

9:33It's about knowing where your money is working for you. That's why we partnered with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower Personal Dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower Personal Dashboard or visit Empower.com. not an Empower client paid or sponsored. We talk a lot about ownership and one of the most important assets you can own is your digital real estate.

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12:08That's J-O-I-N-B-I-L-T dot com slash leisure. Make sure you use our URL so they know we sent you. Terms and limitations apply. Subject to approval and eligibility. Built cards are issued by Column N.A., member FDIC, pursuant to license from MasterCard International Incorporated. Tech is being included in healthcare, is being included in oil and glass, is being included in industrials, is being included in education, is being introduced into farming. You can argue technology ruined farming. Tech isn't going anywhere. Tech actually revolutionized farming, though, too. Think about it. I think it depends on what side of the coin you are.

12:53If you're a farmer, not so much. Now, scale, Rashad, I agree with you. But if you're a farmer, maybe not so much. But if you're a technologist that could make it more efficient, for sure. But like irrigation, that's technology. You know, brother, we all know where. Yeah, but irrigation is technology, right? Yeah. Yeah. The cotton gin, that's technology. Well, we're not going to talk about that particular piece of tech. Cause that was, you know. Well, the cotton, the cotton, the cotton, the cotton is what ended slavery. That's the thing that, so this is, this is an interesting way to look at it.

13:29Right. Slavery was ended by technology, not by political. It wasn't, we talked about Abraham Lincoln before it wasn't political. It wasn't moral slavery. The institutional slavery was ended by technology. once it became more it became inefficient to have human labor and more efficient to have machine labor which is a form of technology at that time cutting edge technology it that within itself kind of crippled the idea that we need people to pick high yeah it went from overt slavery through farming and those practices and then it went covert into banking and then venture, which that money flows into technology.

14:14So I agree overtly it did. Covertly, the racism shifted to a certain degree. And then you can argue then from there, the prison industrial complex developed off of the back of that technology. So it wasn't as overt. So we should call it 19 keys.

14:36I think the last segment kind of answers the question for this segment. I don't see a lifetime for us where it doesn't lead. I don't care what sector you're in. It is going to be the forefront of that sector, whether it's education, whether it's industrials, whether it's healthcare, it will be the thing that disrupts it and changes it. Now, better for worse, that could be up for debate. But it is the thing that makes life. Again, the two things that we need most people want is efficiency and convenience. Right. Technology allows for both. And so pick a sector. Tech will lead it. I don't care what the company is.

15:19And so it will have the lead for the foreseeable future, which tells you why they're investing 500 billion to turn this into a tradable asset. where we're talking about compute, which is why the five companies are spending a trillion dollars because they're expecting return on it, which is why they're talking about having robotics, which is why they're talking about having space. All these things tell you that technology is going to lead the foreseeable future and who knows how many lifetimes. And also, that was one of the things I listened to. I listened to Mike Novogratz when he was on InvestFast stage and he was talking about data centers.

15:52So his company just brought the name and rights to Texas Tech Stadium. and he has operations in Texas now so he he's invested in data centers and he was saying the cost of a data center this cost of the data centers is crazy I think he's like his company personally put like 5 billion they financed 25 billion 30 billion all in for like one data center one and he was talking about that on stage as far as like how much money is being poured into these data centers so the tech spending, going back to the$500 billion investment, I mean, it's going to be unfathomable how much money is going to be spent on technology in the next.

16:37Alicia Little had robots doing karate in the marketplace. I watched them do jujitsu. I watched them dance with the brat. I watched them hold court in the lobby, in the hallways. People were just like, They were blown away by it. Technology, again. Again. We were making the same point. Even from a cap table and investment deployment scenario, it's not in many industries they will even let you allot that amount of money. Even for us, we're fighting to get into rounds, and they're lessening the amount that we can get in because it's oversubscribed. You can't go to a B2B real estate forum and deploy$100 million easily.

17:30If you're raising funds, there's only a certain amount of avenues that you can even deploy that much capital at scale, and that's through tech. You can't do it internationally in other venues and other sectors. So for that reason alone, tech is going to continue to thrive because everybody's trying to oversubscribe to the seed round, the Series A, Series B, Series D. Before you sign off, you tuned in for ways to help teams move faster, make sharper decisions and turn scattered context into work they can use. ChatGPT for Business can help. Chat GPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in Chat GPT.

18:12This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using Chat GPT for Work. Download the Chat GPT desktop app or contact sales to learn more. Ernest, what's up? Look, building wealth isn't just about making money. It's about knowing where your money is working for you. That's why we partner with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more.

18:52You've worked hard for your money. Now make sure it's working hard for you. Download the Empower personal dashboard or visit Empower.com. Not an Empower client paid or sponsored. When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check Lyft could leave you with more money to enjoy the experience.

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20:05This is an iHeart Podcast. Guaranteed human.