Rolf expresses himself and a view on hyperscaler ROIC more precisely than I ever could:
Dougie Kass 35m ago
uber guy on cnbc talking about commoditization of ai – a concern of mine as it relates to adequate roic on large hyperscaler ai spend
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rolf thrane just now
AI hyperscaling resembles other capital-intensive industries where the only defensible advantage is money—which, by most schools of economic thought, is not a competitive advantage – actually the opposite . Industries requiring enormous capital investment generally produce low returns on capital: airlines, automobiles, shipping, and so forth.
rolf thrane
7m ago
strong ROI rule 1) No competition, rule 2) Low to moderate capital intensity, rule 3) remember rule 1 and 2
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