Newsletter

Pricing the Future The core principle of modern finance is that you pay for a company's current and future earnings. It might seem a little weird, then, that BlackRock is in talks to acquire Aligned Data Centers for $40 billion, when a significant portion of what it is

Why Are AI Giants Renting Computers? The current situation in the AI infrastructure boom is that you spend tens of billions of dollars building your own data centers. And also you spend tens of billions of dollars renting data centers from someone else. The someone else, it turns out, is

The Factory, Not the Chip Ordinarily, when you have a corporate breakup, you don't look back. In 2020, Apple very publicly dumped Intel—a move that foreshadowed Intel's eventual decline—by ditching its processors to build its own superior M-series chips. And yet, this week brought

The Humbling of Meta The story of the AI boom so far is that every tech giant is spending tens of billions of dollars to build its own world-beating intelligence. Mark Zuckerberg has been on a particularly aggressive campaign, poaching top talent for a secret "Superintelligence Lab" with

Circular AI A fun trick from the dot-com era was circular financing, where a company would invest in a startup, and that startup would then use the money to buy the first company's products, creating the magical illusion of revenue growth. It is a little weird to see

The Data Landfill The basic story of the AI boom is that it is a glorious, high-tech affair, driven by futuristic chips from Nvidia and god-like models from OpenAI and Anthropic. It is a story of brains. But it turns out that the AI boom is also a story of

The Great Unbundling There are two ways to build a chip empire. On one side is vertical integration, the old-guard model where a company like Intel designs and manufactures its own silicon. On the other is specialization, the modern approach where a "fabless" company like Nvidia designs the

The Made-For-China Chip One way to think about the US-China tech war is as a grand strategic chess match. Another, it seems, is as a farce. Last month, the story was that China was rejecting Nvidia’s made-for-China H20 chip because its homegrown alternative from Huawei was somewhat competitive. This

The Capital Efficiency Bet The rationale behind ASML's €1.3 billion investment in French AI startup Mistral, as we explored last week, is one of sound corporate strategy. The Dutch company that makes the world's most critical chip-making machines wants to embed AI into its own