What do we think the ROIIC has been over the last several years for datacenter and LLM training capital costs done by the Mag 7? It has to be pretty dismal, right? So it is possible that the Mag 7 is filled with Quality Traps?
Yeah, I would guess negative so far. It is possible some are traps especially if LLMs are commoditified and the real value accrues to those who layer it on top of their core services.
It will take a little more time to tell. I keep going back to this chart from Coatue on how it took 6 years for Azure and cloud investments to turn ROIC positive.
What do we think the ROIIC has been over the last several years for datacenter and LLM training capital costs done by the Mag 7? It has to be pretty dismal, right? So it is possible that the Mag 7 is filled with Quality Traps?
Yeah, I would guess negative so far. It is possible some are traps especially if LLMs are commoditified and the real value accrues to those who layer it on top of their core services.
It will take a little more time to tell. I keep going back to this chart from Coatue on how it took 6 years for Azure and cloud investments to turn ROIC positive.
Oh that is a good anecdote for an example of patience. Thanks.