He believes that the AI sector is not in a bubble because the technology works, there is high demand, and customers are actively paying for it.

“I would always say bring the conversation back to ground truth fundamentals. And the the two big ground truth fundamentals are number one, does the technology actually work? Um, you know, can it deliver on its promise? And then number two, is are customers paying for it?”

He believes that increased market scrutiny of Nvidia's accounts receivable and cash flow metrics indicates a potential cooling of the AI investment bubble.

“The more I was reading into it, it's like as a pure sentiment thing because Nvidia's been a lot of this is on vibes and like Nvidia, it's all been positive that they're invincible for a long time. And in the same week, you have the Google training on their own TPU story. People starting to actually ”

The speaker believes current AI market spending is not indicative of a bubble because companies are generating value and profitability from their models.

“I think like there's this like underlying financial success so far that I wouldn't expect to see if there were the very least an obvious bubble.”

The current high level of capital flowing into AI partnerships, characterized by milestone-based theoretical valuations rather than traditional financial metrics, reflects a frothy market.

“But but then we should talk about then then what it means for the market right because you follow of course the the private markets the public markets and if you think about how much uh the public market is relying on Sam to do well Sam to deliver on that promise that he's made”