The Key Question on AI * - Part II
Asking the Right Questions; ORCL; CXMT; China; Robots
In the first part of “The Key Question on AI *”, we posed a very simple question:
“If OpenAI or Anthropic faulter, what happens to their giant backlog with the Hyperscalers?”
Unfortunately, we have yet to receive a satisfactory answer.
The AI Bears were delighted with the sheer thought of the AI Trade blowing up, whereas the most common answer from the AI Bulls was:
“Demand for compute is so high, that if OpenAI walks away, then Microsoft will give it to someone else or keep it for their own use”.
I mean, guys …. If I gave this answer to my professor he would’ve flunked me!
It’s $300bn we are talking about, and the best answer I got was that we can just shift $300bn here and there as if this is candy we are passing round?!
This is really wishy-washy thinking, as if the whole “AI Grand Plan” was “vibe-coded” by ChatGPT version 1.0 …. oh crap, maybe it was, and we just bet the future of humanity on a dumber version of Scam Altman.
This person also didn’t ask the right question: Warren Buffett.
The Nasdaq is down 8% since Buffett invested $10bn in Google, and nothing would be more ironic than if “the AI Top” was marked by the greatest value investor of our generation getting FOMO for the AI Trade at the tender age of 100 (“The Buffett Meme Top™️”).
Had Buffett asked our question before he invested in Google, would he still go ahead?
But seriously. Why can’t someone answer this question for me?
As we said previously, the implications for Passive Investors are also great, given that nearly half the S&P is composed by AI-related companies.
The AI Trade just hit “Pause”…and I’m not the one saying it
Guess which other person didn’t ask the right questions before incinerating billions?
Our old favorite, Labubu Larry!
Since “Labubu Larry” was conceived in September 2025, Oracle’s stock is down 65% …
Anyone remember when Wall Street got super-duper-excited about Oracle’s RPOs (Remaining Performance Obligations) hitting $500bn and pushed the stock above $320, while we exposed the ridiculousness of it all with a single meme?
Well, you can have it now 65% cheaper for $115 …