@KobeissiLetter Zuck and $Meta are the dumbest capital allocators. Literally throwing money at anything โcoolโ without a long-term plan. From Reality Labs to the next cool toy called AI. Google and Amazon are spending on capex because they sell AI infra. Whatโs Metaโs excuse?
@tekbog yeah... a million-strong fan colony on Mars. SpaceX catches assteroids from space, dumps them on Mars to be mined by his bluecheck premium bois, and Grok verifies their work. It's a well-thought-out plan.
We have a record debt situation due to massive AI CapEx, yet $SPGI and $MCO are down 20% for the year. I'm buying both every day they are down, the market has them mispriced as-if they are SaaS companies.
Cash flow no longer covers the AI capex bill, so hyperscalers are funding it with record debt:
Hyperscaler bond issuance has soared to $150 billion YTD, more than the prior two years combined.
I have found that I instinctively go to Gemini for general questions I would otherwise have asked on Google search. I know other models like Anthropic or the latest ChatGPT might be better, but Iโm not doing scientific research. A cheaper model like Gemini serves it well.
Alphabet's Gemini app reaches 900 million monthly users in May
The company also announced that its paid subscriptions recently reached 350 million users.
Alphabet stated it has reduced Gemini serving costs by 78%
@SleepwellCap Itโs hard to understand why 'now.' It was trading in the high 200s as recently as March. My speculation is that this is going to be a much larger investment from $BRK.B - maybe around $100 billion. So, this $10 billion payment is not a big deal in the long term.