Anthropic's Infrastructure Investment - Anthropic plans a \$50 billion infrastructure project, a significant commitment for a four-year-old startup [1][2] - The \$50 billion investment is being compared to government infrastructure spending, suggesting a measured approach [2] - Anthropic aims to demonstrate fiscal responsibility with this investment, which is an order of magnitude less than some other initiatives [3] Business and Partnerships - Anthropic has raised \$13 billion and is valued at \$183 billion, with 300,000 business customers [3] - Anthropic is partnering with a UK company, Fluid Stack, for US infrastructure development [4] - Fluid Stack, a neo cloud company, is less known but has been involved in a French supercomputer project [4] Computing Needs and Reliance - The total gigawatt figure for Anthropic's US footprint is undisclosed [5] - Anthropic heavily relies on hyperscale partners like Amazon and Google for compute resources, despite the \$50 billion plan [6] - Anthropic will continue to depend on big tech partners and neo clouds to meet its computing needs [7]

A major move in America's AI arms race today with Anthropic. It launched a $50 billion national infrastructure buildout plan and it's all beginning in Texas and New York. Mackenzie Sagalo is joining us now from San Francisco with more.And I guess the question I asked Mac is pretty simple. Where's the money coming from and where's the money going to go. >> And that's a question that I've been asking Anthropic all morning and we don't know yet.Uh so $50 billion. This is pretty notable because it's the first t ...

This year alone, the world will spend $580 billion on data centers, $40 billion more than it will spend on new oil supplies. https://t.co/MT0v6kqrm8 ...

But let's start with some and kick things off with Maryanne Bartell's chief investment strategist at Sanctuary Wealth. Maryanne, great to kick things off with you. >> It's great to be here.>> All the data points, they're great. Markets tend to rally. Best time of the year.I got to imagine for your clients at Sanctuary, it's nice. It's probably not the reason to invest, is it. >> Well, the way we've been looking at the market now for a couple of years is that we're in the digital era.And the digital era mean ...

Of course, there's the energy question. Uh, can the energy supply required meet the demand. Our next guest is out with a new report projecting up to a 20% shortage of US power for data centers through 2028.Joining us this morning, Morgan Stanley's global head of thematic research, Steven Bird, is with us. Stephen, welcome back. It's good to see you again.>> Thanks so much, Carl. Thanks, Sarah. >> So, is this going to get worse before it gets better.My concern is you can run into so many different snags when ...

Investment & Expansion - Anthropic plans to invest $50 billion in US data centers in partnership with Fluid Stack, focusing on owning, building, and operating the facilities [1][2] - OpenAI's Stargate project is projected to cost $500 billion, with plans for overseas expansion [3] - A lab within Matter will spend $600 billion on domestic data centers [4] Revenue & Profitability - Anthropic projects revenues of $70 million by fiscal year 2028 [5] - OpenAI's annual revenue run rate is approximately $13 billion for 2023 and projected to be $20 billion for 2025 [5][6] - There is a growing consensus that Anthropic may achieve profitability faster than OpenAI due to its capital-light model relying on partners like Amazon, AWS, and Google [4][6] Competitive Landscape - Anthropic's $50 billion investment is smaller compared to OpenAI's $500 billion Stargate project and Matter's $600 billion domestic data center spending [3][4] - Anthropic relies more on hyperscale partners like Amazon, AWS, and Google for data center resources compared to OpenAI [4]

Financial Performance & Shareholder Returns - Chevron aims to grow free cash flow at a 10% compound annual growth rate [3] - At a $70 oil price, Chevron could return 45% of its market cap to shareholders over the next 5 years through dividends and share repurchases [4] - Earnings per share growth is expected to be better than 10% annually if Brent stays above $70 through 2030 [4] - Break-even point to cover capital spending and dividends is below $50 [7] - Free cash flow is expected to triple from 2024 to 2026 at a $60 oil price [7] Production & Capital Expenditure - Production is growing at a 2% to 3% compound annual growth rate [9] - Capital expenditure is being reduced to a range of $18 billion to $21 billion per year through 2030 [8] - An additional $1 billion in cost cuts has been announced [9] - Synergies on the Hess transaction have been increased by 50% from $1 billion to $15 billion [9] Market Outlook & Strategy - The International Energy Agency's updated report shows demand for oil and gas growing to 2050 [13][14] - Chevron is in discussions to build data centers powered by natural gas, targeting large customers and off-grid power generation [19][20][21][22]

Data center is now our largest segment. So almost half of our business 47% of our business approximate there. We are now let's call it roughly about 40% revenue share of the market in the most attractive uh segments of the market.So large hyperscaler you know very much standardizing uh you know AMD technology through our five generations in addition to you know growing enterprise footprint and it's growing it's growing much faster than the other pieces. uh one because the TAM is growing and the other becaus ...

Risk Management - The company is continuously working on managing third-party risk, especially concerning supply chain constraints [1] - Procedures are being put in place to handle potential backlog doubling and further supply tightening [1] Client Diversification - The company has significantly diversified its client base [2] - At the beginning of the year, 85% of revenue came from a single client [2] - Currently, no single client represents more than 35% of the company's backlog, a decrease from 50% last quarter [2] - Tremendous progress is being made on the contracting side [2] Supply Chain Diversification - No single data center provider represents more than 20% of the company's 29 gigawatts of power to be delivered over the next 24 months [3] - The company is focused on diversifying both clients and suppliers [3]

AI & Technology - Hyperscalers resemble the operating systems of the dotcom boom and have the best chance of creating software packages that bring AI to the people [4] - The rapid depreciation of AI chips, with new chips appearing every 18 months that are ten times more powerful, poses a risk to independent companies [7] - The focus is on who will create the software package that can be monetized, with hyperscalers having the best chance [7] Market & Investment Trends - The world is different from the dotcom boom era because most companies understand that many of those companies never generated earnings or revenues [1] - Only Microsoft, Apple, and Amazon recovered from the dotcom boom and became substantially larger companies [2] - The ETF business has changed the investment landscape from mutual funds, offering tax efficiency and lower running costs [9][10] - Private debt relative to GDP is down 2% annually, indicating the private economy is saving money [16] - The dollar's stability suggests that the anticipated economic problems may not be as severe as expected [17] Value Investing - The most important engine of a value company is generating free cash flow and collapsing capitalization [13] - Value companies in mature industries should focus on generating cash flow rather than investing heavily in CapEx [13]