Episode summary
Big Tech Spend Fuels Next Leg of AI Arms Race
Bloomberg Surveillance
· · 8 min · Guests: Dan Ives, Michael Burry, Jay Goldberg
Summary
The guest argues that the AI trade is being driven by a genuine supply-demand imbalance, not just hype. He says Meta’s reported interest in Google’s TPUs underscores how hard it is for big tech to secure enough Nvidia chips, and he frames Google’s hardware as a workable, if still behind, alternative for some workloads. He also says the broader AI buildout is still in its early innings, with enterprise adoption ahead of consumer use and only a small share of U.S. companies truly deployed on that path.
The guest is bullish on Alphabet, Apple, Meta and Tesla as beneficiaries of the next stage of the AI race. He says Google’s DOJ win helps open the door to a deeper Apple-Google partnership, including Gemini integration, and he argues Apple could gain meaningful earnings power from AI even after years on the sidelines. On Meta, he views rising capex as a positive sign of a "wartime CEO" strategy, despite near-term pressure on earnings and cash flow.
He also argues the market is underestimating the length of the cycle. In his view, investors are still only in year three of an 8 to 10 year tech build, with at least two more years left in the current bull market. Tesla, he says, may ultimately be defined less by cars than by autonomous driving and robotics, with regulatory easing likely to support robotaxi expansion.
Key takeaways
- The guest says Nvidia still dominates AI chips, but shortages are forcing companies like Meta to look at Google TPUs as a backup.
- The guest says Google’s DOJ victory clears the way for Apple to deepen its partnership with Google around Gemini.
- The guest argues Meta’s higher capex is a bullish signal because management is spending aggressively in the AI arms race.
- The guest says the AI bull market is still in year three of an 8 to 10 year build, with at least two more years left.
- The guest says Tesla’s next growth chapter will come from autonomous driving and robotaxi rollout, not just car sales.
Notable quotes
“there is one chip in the world fueling a revolution that's in video”
“They're not buying perplexity. They're going with Google. They're going to go down bet heavily on them”
“I think right now, investors, it's very easy knee jerk with the bury the bubble, all the worries”
“there's two more years at least we have in this tech bull market”
“I believe autonomous and ultimately optimists robot will be the most important chapter ever in Tesla's growth story”
How the episode opens
To me, it's really it's all about where they're ultimately going to take this in the future. And we'll see. As Apple Altman goes down the paths with Gemini.
And in terms of the feature, they need to have as wide of a content lens as possible. And I think when you look at Apple TV, it's all part of look, the quality speaks for itself. Quinn has been the issue, but for them, it's just they're going to continue have irons in the fire.
That's they're going to do the TV show Pluribus. It's a sci fi. Yeah.
She's home all alone. Everybody around her is like a droid. She's watching surveillance.
It was great fans watching it, too, including her example. So then the A.I. story here took a little bit of a turn over the last a couple of days here.
Metta placing a big chip order with Google. Further call into question the position or the dominance position of in video. Give us your thoughts about that.
I mean look Google TPU if you with Broadcom and TSMC is the is the builder that's been around for over a decade. Right so it's not that new per se. I think the issue comes down to demands by for embedded chips at 12 to 1.
So the reality is that the supply of Nvidia chips 12 to 1 to look when you look at Metro, they're not going to be able to get everything they need from a video. So they got to work outside. When you work with Google, as I'd say, it's really it's probably 3 to 4 years behind where India is.
But again, under some certain instances it could be good enough and we'll get that's where we're going. I mean, the reality is when it comes to AMD, when it comes to big tech event and see Apple and Symetra using Microsoft, they'll build their own chips as well.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai chip spending
- tpus vs gpus
- big tech ai capex
- cloud compute demand
- ai bubble fears
Companies and tickers mentioned
- META
- GOOGL
- GOOG
- NVDA
- Meta Platforms
- Alphabet
- Nvidia
- Anthropic
- Wedbush Securities
Watch the episode
Watch “Big Tech Spend Fuels Next Leg of AI Arms Race” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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