The best way to play AI is to buy the big hyperscalers, says Lead Edge Capital's Mitchell Green

AI Investment & Strategy - Hyperscalers such as Facebook, Amazon, and Google are dedicating massive capital to AI, with Amazon potentially spending $60 billion in the second half and having spent $56 billion in the first half, and Google potentially spending $85 billion [4] - The best way to engage with AI, especially for retail investors, is to invest in hyperscalers due to their significant capital allocation in the space [4] - An alternative way to gain access to AI is through investments in Microsoft, due to its significant investment in OpenAI, or SoftBank [5] - Some boards are starting to see real ROI from AI projects, though not yet widespread [19] AI Market Dynamics & Risks - There's concern that current leading AI companies could be like Excite, Lycos, and Alta Vista from the 90s, indicating uncertainty in picking long-term winners [7][17][18] - The dilution at some private AI companies is "absolutely insane" due to the amount of stock options being given to engineers [8] - The expense of bringing AI on board is not cheap and could hurt margins if not offset [15][16] - The current AI environment is compared to the internet bubble of 1999-2000, suggesting potential for significant long-term revolution but also current uncertainty [17] Talent Acquisition in AI - Companies like Facebook, Microsoft, and Google are paying engineers like NBA players, using both equity and hard cash to retain talent [8] - AI engineers are receiving compensation packages exceeding $100 million, highlighting the intense competition for talent [10] Market Sentiment - The market seems complacent, and a market pop will likely be triggered by something unforeseen [20][21]