Compute

we're early Jensen Huang: "Agentic AI requires 1000x more compute than generative AI"

Jensen Huang just replaced the most important metric in global economics. Not trade volume. Not oil output. Not manufacturing. Compute. Huang: “Compute equals GDP. I know that for certain.” He did not say probably. He said certain. If your nation does not produce compute, it does not produce intelligence. If it does not produce intelligence, it does not produce revenue. Two links in the chain. Miss one and the whole thing breaks. Huang: “Not one country in the future will say, ‘Guess what, we’re gonna opt out on intelligence.’” Because opting out of compute is not a strategic decision. It is an extinction schedule. Every country that does not build its own inference capacity becomes a tenant in someone else’s infrastructure. Not an ally. Not a partner. A dependent. And dependents do not negotiate terms. They accept them. But this is not just a story about nations. Huang: “The entire software industry will be token-driven.” Every product. Every platform. Every service you touch. The entire business model of software is about to be measured in tokens consumed. Not seats sold. Not licenses renewed. Tokens burned. Software used to be a thing you bought. Now it is a thing that thinks. And thinking costs compute. Every query. Every action. Every decision the machine makes on your behalf. The meter is always running. Huang: “The entire internet industry could take 100% of their CapEx and make it AI because it’s better.” Not ten percent. Not a pilot program. One hundred percent. The moment any internet service rebuilds itself on generative intelligence, it outperforms every version that came before it. Search. Ads. Recommendation. Infrastructure. All of it. Better on contact. CapEx follows. All of it. Trillions moving in one direction with no offramp. The companies still budgeting AI as a line item are telling you exactly how much they understand. AI is not the line item. AI is the budget. The global economy is being re-denominated in a currency most people have not even heard of yet. Tokens. Whoever controls the supply of that currency is not playing in the new economy. They are the house. And the house does not lose.

A lot of compute is needed