MiniPod: The AI Revenue question asked and answered
Founders AM | Institutional Insights
Housekeeping: Good Morning.
Note: We aim to get this report out very early almost daily. However, some materials have been volatile in arriving to us. For now, to optimize materials and time, expect this report between 10 and 11. We will get it our earlier if the data is present. However Founders Big Event Prep, like Fed and Data releases will still be early when needed.
Overview: a JP Morgan Managing Director questions if all the new AI expense known as “hyperscaler“ costs are justified given the lack of killer app and foreseeable revenue generation from the costs. They layout why a shortfall is evident. It is a pretty big short fall.
We believe that the short fall is not so evident. And explain why in a mini podcast. Keeping in mind, we’re not fans of the product and everything it promises, but this is not about opinion of industry. This is about how businesses will utilize the new technology, and they will utilize it very quickly.
The bottom line is, many people will get fired from this product. And most of them will be white-collar workers in the finance industry and insurance industry. Some of them will be lawyers and mid office operators.
And Goldman Sachs has already stated what they will do with it
Enjoy.