if you want to 100x your money TODAY, you can't long NVDA, or buy into an Anthropic SPV. you need to move further up the AI stack.
Stack is: Compute -> Models -> Data.
Compute (last 10-20 years):
NVIDIA: 1,500%
Intel/ARM/etc: 200-300%
infra like Energy, semis, etc all pumped/pumping
Models (last 5-6 years):
OpenAI: >$1T IPO soon
Anthropic: >$1T IPO soon
xAI, Mistral, etc all have mega valuations already
Data (next 5-10 years):
it's still early innings for data, but Mercor already valued >$10B, Scale AI bought by Meta for $14B. Many new companies emerging too, eating their lunch.
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Don't get me wrong, you can still make decent returns on compute and models today, but the massive upside is no longer there.
what's left is data.
AI cannot function without training data.
AI cannot get better without training data.
AI needs training data just as much as it needs data centers and energy.
The word "data" in "data centers" tells you all you need to know.
Data is like the spice in Dune.
Companies that sell high signal training data are selling picks and shovels in the AI race.
Frontier AI labs are ALREADY spending massive amounts of money on data, and after they IPO they will have EVEN MORE massive amounts of cash to spend on data to get ahead of their competition.
We will see $1T data companies in the future.
NFA, DYOR