Tha AI lvnseter

This 100MW data center in UAE is the largest solar powered datacenter in the world. There are currently 1,300 data centers in the world that are bigger than this one, but this one is the largest solar powered one. That’s 10 square kilometres of solar panels you can see. The datacenter itself is 0.02 square kilometres, so a solar powered datacenter is ~500x larger than a data center using any other form of power. A five hundred times larger site. UAE has some of the highest solar irradiance anywhere on Earth, it is an inhospitable desert. Averaging 9.7 hours of sunlight per day with average irradiance above 2,200 kWh/m^2. If you build this somewhere else, you need more solar panels because your irradiance will almost certainly be lower. Even if the world had an infinite supply of free solar panels, solar power will not be free. Anyone who has ever done major capital projects, who looks at where data centers need to be in the next 5 years and the next 10 years… we know it aint solar. Sorry. You struggle to even build a train track that’s 100 miles long and 10ft wide anywhere in the West, there is zero chance of build 100 square mile solar farms for GW compute. This is why people are talking about space compute. Deploying into space is one strategy to solve the constraints. But there are faster and more scalable strategies, that get you to mass deployment of multi GW data centers. There are strategies that also allow you to power the 10 billion robots and their newtonian actuators, that immediately follow the inference demand cycle. Step back and look at the full cycle of this industrial revolution… There will be billions of chips, but there will be trillions of actuators. This biggest part of this revolution is the embodiment cycle, and it’s big by a factor of 20 or 50x over the stuff that comes before it. There is no analogy in human history for the scale of this economy, of the demand it will place on energy and commodities. The humans own the Earth, and if you exist inside their legal system, they won’t let you turn the surface of their planet into glass. But they do want your chips and your actuators to serve their needs and desires. There is a way to do all of this, and so it will happen.

Current semi stocks ranking by forward PE / forward PEG note - directional only, data might vary depending on sources or the method

Looks like the market has gone from 'nobody making money but Nvidia' to 'everybody making money but Nvidia' Anthropic ARR jumped from $9B to $44B+ so far this year, while inference margins rose from 38% to 70%+ (source SA). OpenAI likely saw a massive jump too. Once models become truly valuable and people are willing to pay, remember it's big $NVDA bear thesis 1,2 years ago). Compute becomes the bottleneck, but compute is power-constrained. And in a power-constrained world, the platform with the best tokens per watt probably wins. Would be great to see the SA team add ASICs to this chart, so we can compare real performance vs NVDA GPU instead of relying on unverified claims.

Current semi stocks ranking by forward PE / forward PEG note - directional only, data might vary depending on sources or the method