Why The AI Trade Is STILL EARLY And Not Topping Soon

0:00Trillions and trillions of dollars are being allocated to the AI trade and investors are wondering, will we get the promised returns or is everyone piling into the top of a big bubble that's about to crash? I went on Fox Business with Maria Bartiromo this morning and I explained why I believe the United States of America and countries around the world are building out the infrastructure for the next century and investors who allocate to this trend are going to do very well. Take a listen. What do you think about these markets, Anthony? Well, I think that the market is showing us that the AI trade is real.

0:30People are very excited about the foundation that's being laid. You know, one of the things is that the United States of America is laying the groundwork for the next century. We used to be an analog industry. Now we are going into this digital world. And so artificial intelligence needs a lot of energy. It needs a lot of data centers. It needs a lot of compute. We're building that out. The rest of the economy is trying to figure out, is this stuff going to be good or bad? Is it going to be a threat or is it going to help me? And I think that that's really what investors are trying to navigate here is we know the AI trade is real.

0:54We know that there's going to be things that are scarce. And so we want to allocate there. But what about the rest of the world? And that's what everyone's trying to figure out with their capital. Now, part of the reason why I'm so convicted in the AI infrastructure game is because I see the power of AI when you put it in the hands of the consumer. One of the narratives that everyone is focused on is the anti-data center narrative. Everyone is yelling and screaming, saying, I don't want data centers in my neighborhood. And there may be good reason for them to be cautious. But at the same time, artificial intelligence is making people more productive.

1:23It's making companies more profitable. And it is literally helping people make more money in their personal portfolios. I know that because we built CFO Sylvia and we see it in the data. Maria and I discussed exactly how these types of products work. And I believe that people would be much more favorable towards AI if they understood how it could personally benefit them. Take a listen to what Maria and I talked about here. And you said that the model helped boost investors' net worth between 16 % and 42 % within six months of using the platform. If that's true, I want in. Tell us how this works.

1:56Well, one of the things you got to remember is that artificial intelligence is very good at going through complex sets of information. And so one of the problems with the general purpose models like a chat GPT or a Claude is that it doesn't have the context of your personal financial information. So what we built is Sylvia, which you can come in and you connect your portfolio, your bank account, your brokerage account, your crypto account, your credit cards, your private investments. And then you begin talking to Sylvia about what your goals are to identify risk or try to evaluate various investment opportunities for your portfolio.

2:21And because not only does she have superhuman intelligence from the AI models, she also has the context of your portfolio. So if you go and you ask, for example, how do I get my tax rate down to the chat GPT, it will give you very generic advice. If you go and you ask Sylvia that, she will go asset by asset in your portfolio and tell you specifically for you what should you do. And so we have seen thousands of multimillionaires go and sign up for this product, and they are asking on average 15 questions per week. And so as we see more and more people use the product, we can track the net worth growth.

2:50And what we see is across all income levels and across all net worth, the more they use the product, the wealthier that they become. Wow, that's incredible. But, I mean, Anthony, is there a downside risk to having the machine know that much information about me? Well, if you think about it, actually, I think a lot of people trust the AI more than they trust humans. You know, we hear people tell us that I'd rather ask the AI the question because the human is not going to judge me. They'd rather tell the AI something because they feel like the human may actually make a mistake or can't do it as quickly.

3:17You know, one of the things I always tell people is go ask your financial advisor, your accountant, somebody, run a Monte Carlo simulation for me and then ask Sylvia to do it. Sylvia will do it in seconds. You may not get an answer back from the human. That's true. But what about agentic AI and the concerns around it? I mean, that, you know, you give these machines so much information about you, they could actually develop their own personality and perhaps at one point do things that you're not expecting, unpredictable behavior. Yeah, I think that one of the important parts about Sylvia in particular is we don't touch your money.

3:46So we can't move your money. We can't make a trade for you, et cetera. So it's information, which I think gives people a lot of confidence. But the other piece of it that I think is really important is that as agentic AI becomes better, what you're going to find is that people are going to actually have the button as to do I want to authorize this or not. Right. I've hooked up AI systems to my email or Slack, et cetera. And you can actually tell it, hey, I don't want you to be able to send emails. Right. I don't want you to be able to actually message. I want you just to read and then give me information back.

4:12And I think that that's really maybe where a lot of people are comfortable. It's I want the intelligence, but I don't want you acting on my behalf. So if AI is helping people and actually investors can allocate to the trend and they're likely to drive significant returns in the future, then this entire worry about the AI trade, I think it's all nonsense. It's all noise. And investors who are able to block it out and just stay focused, they're going to do very well. But simultaneous to that, in a world of abundance, where it becomes very cheap to create content or create intelligence, all of a sudden scarcity becomes very valuable.

4:45That's why I think assets like gold, real estate, Bitcoin, those things are going to become very sought after in this world of abundance. Maria asked me about Bitcoin and my current thoughts there, including why I think the rest of the crypto industry is dying. And here's what I said. Meanwhile, the crypto market has been pulling back again. We're what, Bitcoin below 77 ,000. And what's your take on this market? And in terms of use cases for crypto over the long term, how did things change? Yeah, I went to CFO Sylvia dot com today and I asked about the crypto market when I was coming out here.

5:16And two of the things that really came up is the compounding growth rate of Bitcoin over the last decade is 70 percent. It has destroyed every asset. That's 70 percent. You're an investor in Bitcoin. You made money on it. Now, the second thing is over the last 90 days, Bitcoin is up about 14 percent or so. So it's very volatile, which I think people, if you don't pay attention on a day to day basis, you kind of look and you're always surprised at where it is because it moves around a lot, but still up 15 percent or so in the last 90 days. Now, the reason why I think that's happening is we have a world of uncertainty right now.

5:42What's going to happen to interest rates? What's going to happen in Iran? What's going to happen on a geopolitical stage, et cetera? And so from that, I think people want certainty. And so they look to assets like Bitcoin, which are non-sovereign or finite and also can be audited by anyone in the world. And so I think that as Bitcoin continues to increase in adoption, where the adoption is coming from is very fascinating. There's lots, millions, tens of millions of people who own it. But now Wall Street's getting in the game. And you're starting to see these really big firms that are very smart, who are looking for risk-adjusted returns, who have a fiduciary duty to their clients.

6:14And they're starting to say, you know what, Bitcoin is good enough for me. I'm going to go and put it in my client's portfolio. And I think it's a huge step for Bitcoin. Well, I know that you're an investor in Bitcoin, but you also have said that the industry is dying. Well, I think that the four areas of crypto that are going to end up surviving are Bitcoin, stable coins, equity infrastructure and tokenization. But most of the rest of the industry is just kind of becoming a ridiculous clown show, right, is they are basically running around and they're trying to be mercenaries. Everyone is trying to figure out how do I create some coin and hope it goes up in value.

6:45But ultimately, I think that sophisticated investors are trying to figure out where can I put my capital and have it resiliently hold value or increase in value. I think those four years is where that's going to happen. You are a straight shooter, Anthony. Great to have you this morning. Thank you. Yeah, thanks for having me. So there you have it, folks. I believe that the AI infrastructure trade, that's going to continue. And we are in a bull market. I think that if we can put AI products in the hands of the consumer and actually draw a line from use this product and here's how you can make money, that will change people's tune towards the technology.

7:14And last but not least, in a world of abundance, I think that scarcity becomes very valuable and assets like Bitcoin are going to do very well. That's it for today's show. Thank you guys so much for watching. Please remember to subscribe on YouTube and I'll see all of you live from the desk of Anthony Pompliano tomorrow.