Prof G Markets: Is Boeing a Buy? AI Picks & Shovels (and Scott’s Ketamine Trip)

Data Centers

The growing demand for AI infrastructure is driving significant investments in data centers. Scott Galloway highlights Prologis's plan to invest $8 billion in data centers over the next five years, with potential expansion to 100 projects and a $25 billion investment long-term 1. Ed Lee adds that the global spend on compute power is expected to surpass the current GDP of the US by 2037, emphasizing the need for computational efficiency and production 1.

When you have compute power growing this rapidly, it's estimated by 2037, global spend on compute power will be greater than the current GDP of the US, which is $27 trillion.

--- Ed Lee

Energy companies, despite a challenging year, could see a resurgence as AI demands increase energy consumption 2.

   

Energy Efficiency

The energy efficiency of AI and crypto is a pressing concern, with Scott Galloway questioning the rationale behind crypto's massive energy consumption 3. He sees potential in companies like Astera Labs, which improve AI system efficiency, and Vertiv, which provides power management for data centers 3.

In a typical data center, only 40% to 45% of the energy use is for the actual computing. The rest is used just to keep cooling down the servers.

--- Scott Galloway

Ed Lee notes Oracle's unique position in the cloud infrastructure market, as it doesn't compete with AI companies, making it an attractive partner for AI startups 4.