What happens when the biggest technology trend is built on economics that don't make any sense when viewed end-to-end? Eventually, some aspect has to change, but which one? SHOW: 968 SHOW TRANSCRIPT: The Cloudcast #968 Transcript SHOW VIDEO: https://youtube.com/@TheCloudcastNET CLOUD NEWS OF THE WEEK: http://bit.ly/cloudcast-cnotw CHECK OUT OUR NEW PODCAST: "CLOUDCAST BASICS" SHOW SPONSORS: [TestKube] TestKube is Kubernetes-native testing platform, orchestrating all your test tools, environments, and pipelines into scalable workflows empowering Continuous Testing. Check it out at TestKube.io/cloudcast [Interconnected] Interconnected is a new series from Equinix diving into the infrastructure that keeps our digital world running. With expert guests and real-world insights, we explore the systems driving AI, automation, quantum, and more. Just search “Interconnected by Equinix”. SHOW NOTES: Tokens are getting more expensive Nvidia Earnings, Moats and China, Nvidia vs. the AI Labs Oracle Assures Investors on AI Cloud Margins as It Struggles to Profit From Older Nvidia Chips WHERE ARE THE BIGGEST AI RISKS? Jensen Huang (NVIDIA CEO) is convinced that the future will be built on always having the most advanced GPUs and Frontier Models. Oracle is telling investors that they will significantly increase profit margins between now and 2028-30, although they have low margins now and they don’t make high margins on older chips The economics of AI (reasoning models, high#s of AI tokens) is in contrast to the established SaaS business model. Right now everything AI-associated has a high valuation, but these forces are working against each other. Which one is going to give first? FEEDBACK? Email: show at the cloudcast dot net Twitter/X: @cloudcastpod BlueSky: @cloudcastpod.bsky.social Instagram: @cloudcastpod TikTok: @cloudcastpod
