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What a treat you're on a Friday parachuting in After World Travels, Dan Ives It joins us here, Dan, I'm supposed to talk about Apple and Nvidia. Forget about it. Here's the zeitgeist this morning, folks and Doug cast. Thank you for sending this on Trumany. Jeff Curry's out on the Twitter on this as well. Guess what tokens costs money? OMG, look at the cfo's bill for doing AI in your company.
Dan Ives.
Deloitte wrote this up in January, like eighty pages.
OMG, this is going to be expensive.
You see Microsoft limiting use of Claude because it's too expensive.
How is this going to play out? Dan Ives?
I mean, look, it just speaks to we're still in the early stage.
Agreed.
There's more data centers being built.
In active data centers, costs over time will come down, but right now in this arms is no company, whether it's large cap tech, small cap international, could basically not go down this route because eventually what's going to happen is the cost and the monizition they'll flip flop over the next few years.
And that's why companies are spending at this page.
I agree on that, but on a macro basis in your world famous on this, Does that mean we see a consolidation within the industry?
And is that in the second inning?
Year? Is it red Sox try to get to fourth of July? Or is it in the eighth inning and the Yankees are ready to lose to the Blue Jays again?
Which is it it's second and third inning? Because this is look it speaks to like the bears in their caves hibernation mood that have missed every transmission in TECHTOC the last twenty years. They'll continue to miss the AI trade underestimating the scale and scope of what the spending looks like. And I've seen it, you know, just even a few weeks ago in Taiwan, Ineesia.
Demand the supply is what twelve to one and that is.
Going to continue to drive this massive capax and the ripple effects across tech energy and everything else.
Damian Torsten Slock, publishing moments ago for a pull of global management it capex now counts for more than one third of S and P five hundred CAPEX spending.
Well, I mean I have to, I mean, wow, I mean, but I have to you know, let's just shift the way. Here. We have the world's largest I mean, on record IPO coming out in SpaceX here, and I just got to ask you, Dan, I mean, what are your thoughts here on Musk and and shareholder rights and minority rights and control? I mean, is this unusual the type of structure we're seeing here?
Bottom line is betting against Musk. It's been the historically wrong move for investors, right, and I think many were in that betting against Tesla. You're betting on Musk. And I get some of the in terms of voting rights and things like that. Book Space actually talking about one of one relative to what's going to really create a whole new category of investing.
And as you've seen in the private markets.
You know, there's more stock has come veb over the last you know, call it three or six months. And we're talking about a watershed movement, not just for Musk, not just for SpaceX, but as we've talked that we think a year from now over an eighty percent chance SpaceX and Tessa merge.
Wow.
So if that happens, I mean, we're how do investor's position, how do you take advantage of that. Let's put our merger on.
Well you buy Tessa.
I mean to some extent because from evaluation respective, I think Tesla we've talked about it is almost a double from here relative to the pure opportunities became out autonomous robotics and where this is all going in terms of.
The next level of AA. And that's why Musk is doing this to bring this all under onehood.
On a Friday of Memorial Day, did could you see Dan Ives out in the backyard with a grill?
I mean not Michael Barr.
Do you think he's doing like the whole thing, the grilled chicken, the long time got long.
Time one at the grill. I could see.
I could just see him, you know, you know, with the Milwaukee Best in his hand and the whole thing Dan give me. Microsoft is just you know, a stock idea. You're on it, Acmans on it.
I get it.
What's the why the distinction? The differential of Microsoft.
Look kind of right now because of Google and the success massive that they've had in Amazon, there's a view, especially with open Ai, that sort of competition and Microsoft's starting to lose in the game. I just strongly disagree because as enterprises move to Azure and they move on the AI stack, They're gonna move in Microsoft. Look, Microsoft and Apple are the two most I viewed table pound
their large cap names relative to where their trade. We've talked about one hundred and fifty dollars upside of Microsoft here. They will prove themselves over the next six twelve months. They will be the Google of twenty twenty five. That's where I view Microsoft in terms of that.
You know that that prove.
Moment generous of you to be with us on this Friday day nights with Wetbush Securities. Thank you so much. Next time he's on, folks, we'll do the stock thing, you know, Apple and Idiot and all that