00:00:00
tokens greater greater than tariffs. Tokens to an AI model is like fuel to a car or electricity to a computer, right?
00:00:07
Microsoft said that in their Q1 they processed 100 trillion tokens, 50 trillion alone in March. And so the
00:00:14
tokens are really going basically vertical, which is probably because of these reasoning engines which are much
00:00:20
more sophisticated and require more compute power. It's a bit unfair for Trump, but the market did not just go
00:00:26
down because of tariffs. If you remember, it went down because people freaked out. We're in an AI bubble. AI
00:00:30
is not really working. What's the ROI on AI? That was maybe a third to a half of
00:00:36
the problem. And I think what Microsoft said is like capex is going up and everybody has a gigantic shortage of
00:00:43
chips right now. That I know for sure from all of our private companies, public companies, there's a shortage of
00:00:48
chip, a shortage of compute power. Look at the next year or two. At some point tariffs goes away. Trump makes this big
00:00:54
deal with deregulation. and the tax breaks sort of cancel out the tariffs. We move on and what are we left with?
00:01:01
We're left with tokens. All these people that say, "Oh, this is the end of American exceptionalism." I almost
00:01:06
wanted to say, "No, you guys are wrong. And this is the beginning.