Prepare for Exponential Costs in AI Training | 1min snip from Invest Like the Best with Patrick O'Shaughnessy

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Andrew Homan & Chris Miller - Redefining Semiconductor Progress - [Invest Like the Best, EP.396]

Invest Like the Best with Patrick O'Shaughnessy

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Prepare for Exponential Costs in AI Training

The rapidly escalating financial capital required for training AI models is staggering, with projections indicating costs soaring from $10 million in 2022 to an anticipated $100 billion by 2026. The overwhelming majority of expenses, reaching up to 90% of the total, are consumed by computing resources from major cloud providers like Azure, AWS, and GCP. This trend highlights an essential consideration for companies aiming to lead in competitive AI development; only those with substantial financial resources will likely sustain their operations at the forefront of the industry.

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My guests today are Andrew Homan and Chris Miller. Andrew has spent two decades at Maverick Capital and is a managing partner at Maverick Silicon, where he leads the firm’s technology investments. Chris is a professor at Tufts and the author of the New York Times best-selling book “Chip War,” which details the geopolitical battle to control the semiconductor industry. Together we get into a comprehensive discussion on the semiconductor ecosystem and the silicon backbone of our digital age. Andrew and Chris share insights on how venture capital is navigating this complex industry and what it means for the future of computing. We discuss the AI-driven revolution in chip demand, the geopolitics of semi-manufacturing, and the next wave of innovation beyond NVIDIA. Please enjoy my conversation with Andrew Homan and Chris Miller.

For the full show notes, transcript, and links to mentioned content, check out the episode page here.

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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.

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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:

(00:00:00) Welcome to Invest Like the Best

(00:06:28) Intel's Historical Success and Current Challenges

(00:08:22) The Paradigm Shift in Technology

(00:11:44) AI and the Future of Semiconductors

(00:19:02) Political and Economic Considerations in Chip Manufacturing

(00:29:28) Investment Perspectives and Market Dynamics

(00:45:46) The Mobile Paradigm Shift: Apple vs. AT&T

(00:46:49) Corporate Strategies in the AI Transition

(00:48:02) NVIDIA's Dominance and Potential Vulnerabilities