Evolution of Computing Architecture Layers

Different layers of computing architecture evolution show a pattern where returns on capital are highest initially for infrastructure, followed by platform/OS, and lastly applications. Investors tend to focus on applications layer for practical use, but returns on capital in this layer take time due to the need for the market to develop solutions. Therefore, Light Street focuses on the infrastructure layer and allocating capital there during the initial stages of the AI shift, starting with GPU makers such as NVIDIA and AMD.