$NBIS : $SPCX Earnings Call Incredibly Bullish for Ai Infrastructure Buildoutđ„
Elon Musk just delivered one of the strongest validations of the neocloud thesis yet on todayâs SpaceX earnings call.
Direct quotes from Elon:
âWe are also frankly hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute. So we could rent out our compute several times over if we said yes to everyone.â
âI donât think weâre going to have a demand issue here. And like, itâs not impossible⊠that we will have a six-month payback period for compute next year.â
âOur belief is that the value of compute per watt will increase over time, not decrease. And the reason for that, I think it should be obvious to people really, is that as you improve the AI software, as the models get better and better, theyâre able to get more useful intelligence per watt. And the value of that compute is proportionate to the useful intelligence per watt. And thatâs why you see things like even old computers like H100s renting for more than they rented when they were newâŠand I think thatâs likely to continue. I think weâre going to face a shortage of superintelligence compute. And that shortage is going to remain for a long time...â
Why this is bullish for Nebius $NBIS:
âą Rising value per watt (even for older GPUs) supports sustained strong pricing and high utilization for AI cloud capacity.
âą Explicit long-term shortage of superintelligence compute means thereâs structural demand for elite Ai Infra providers like Nebius who can deliver and the Ai compute market will be supply-constrained for a long long time.
$NBIS : Long Game
Elon Musk just delivered one of the strongest validations of the neocloud thesis yet on todayâs SpaceX earnings call.
Direct quotes from Elon:
âWe are also frankly hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute. So we could rent out our compute several times over if we said yes to everyone.â
âI donât think weâre going to have a demand issue here. And like, itâs not impossible⊠that we will have a six-month payback period for compute next year.â
âOur belief is that the value of compute per watt will increase over time, not decrease. And the reason for that, I think it should be obvious to people really, is that as you improve the AI software, as the models get better and better, theyâre able to get more useful intelligence per watt. And the value of that compute is proportionate to the useful intelligence per watt. And thatâs why you see things like even old computers like H100s renting for more than they rented when they were newâŠand I think thatâs likely to continue. I think weâre going to face a shortage of superintelligence compute. And that shortage is going to remain for a long time...â
Why this is bullish for Nebius $NBIS:
âą Rising value per watt (even for older GPUs) supports sustained strong pricing and high utilization for AI cloud capacity.
âą Explicit long-term shortage of superintelligence compute means thereâs structural demand for elite Ai Infra providers like Nebius who can deliver and the Ai compute market will be supply-constrained for a long long time.
$NBIS : Long Game