The Cashflow Memo
Shownotes
[00:00:00] Intro
[00:00:49] Exhibit C - Oil Demand and Supply
[00:02:11] Exhibit B - Natural Gas Production
[00:03:42] Exhibit A - Government Deficit
[00:04:55] Apple's AI Approach: The discussion turns to Apple's measured approach to AI, focusing on developing a small on-device model and leveraging the platform to bring in external models like OpenAI. Mike believes this demonstrates Apple's strengths in secure and sensitive handling of personal data. The OpenAI partnership is likely a freemium model where Apple takes a revenue share of premium subscriptions. This could become a meaningful part of Apple's services business.
[00:09:52] Microsoft vs Apple AI Strategies: Microsoft is taking an enterprise approach, integrating Copilot across its software suite. OpenAI's business through the Apple channel will likely be more consumer-driven. The cost of inference on newer AI models is substantially higher than older ones, but will decrease with new NVIDIA hardware generations.
[00:11:49] Monetizing AI: OpenAI's monetization paths include consumer and enterprise offerings and APIs for other companies to integrate AI capabilities. Many software companies are exploring AI enhancements for their products, such as generating email responses in sales or chatbots for customer support.
[00:14:03] OpenAI's Future: Jason believes Microsoft will likely acquire OpenAI at some point. Google's response to Apple's AI moves and the potential impact on search is discussed. Technology often sees mainstream adoption after Apple integrates it into their products.
[00:16:55] Oracle's AI Infrastructure Play: Oracle is building a massive data center entirely populated with NVIDIA chips for AI training, with half the capacity pre-sold to Microsoft. This may be to support the increased compute needs from the Apple-OpenAI deal. Larry Ellison is inserting Oracle into the AI supply chain by securing preferential access to NVIDIA chips and providing GPU compute to hyperscalers. Data center capacity, rather than GPUs themselves, may become the choke point.
[00:19:16] Crypto Miners and Power Infrastructure: The discussion briefly touches on how crypto miners with existing power interconnects could be acquired for their infrastructure to support AI data centers, as getting power from utilities to new facilities can take years.
[00:20:29] Oakcliff Sailing Sponsorship Message: A brief sponsorship message from Oakcliff Sailing, featuring testimonials from sailors David Hervey and Kate Mattiello about their training experiences and Olympic aspirations.
[00:21:04] Salesforce, ServiceNow, and Snowflake: Jason mentions a hack related to Snowflake customer datasets, potentially due to a compromised sales engineer account without proper multi-factor authentication. This could slow down Snowflake's sales process if it leads to more stringent security requirements when engaging customers.
[00:25:41] Healthcare News - Celsius, Eli Lilly, Vertex: In healthcare, Celsius' growth was reported as slowing based on Nielsen data, but this may be due to data gathering changes. Eli Lilly announced positive trial results for an Alzheimer's treatment, more effective than the current standard but still with a low bar. Vertex has started submitting data to the FDA for their pain medicine, with potential approval by end of year.
[00:29:05] NVIDIA News: NVIDIA's CEO Jensen Huang made a high-profile visit to Taiwan, and the company announced a 10-for-1 stock split, possibly positioning for inclusion in the Dow Jones index. TSMC's monthly reports show steady improvements.
[00:30:58] Streaming and Sports Content: The hosts plan to discuss streaming and sports content rights in the next episode, with the NBA parceling out their events to likely partners Comcast and Disney.
[00:32:14] Closing Remarks
AAPL 0.00%↑ MSFT 0.00%↑ GOOGL 0.00%↑ NVDA 0.00%↑ ORCL 0.00%↑ SNOW 0.00%↑ CELH 0.00%↑ LLY 0.00%↑ VRTX 0.00%↑ LNTH 0.00%↑
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