AI data centers require 10x more power than traditional 50-100 megawatt centers, posing a major challenge for aging electricity grids and driving up consumer electricity prices.
Asks if big tech leaders might work with the White House to gain favor with Trump, and what the impact on their profit growth might be.
Host
Unknown Analyst
AI data centers are a much lower gross margin business for hyperscalers (Amazon, Microsoft, Google). Margins are shifting from 65-70% for public cloud to sub-50% for AI workloads, forcing margin compression even for giants like Microsoft.
Notes semiconductors are top performers in S&P 500, buoyed by TSMC's bullish forecast, and asks if anyone loses out when TSMC can't meet demand.
Host
Unknown Analyst
Intel is benefiting; no clear losers yet. However, extreme focus on AI is creating supply shortages in previously neglected components like storage and CPUs, as resources are reallocated to meet AI demand.