Serial venture and growth equity investor. $bn+ scale ups. Investing in European technology companies. #AI #extended reality #neuromorphic #photonics #devops #edge #web3 #quantum #efficient software
Nvidia is now bigger than corporate listed Germany ( my thanks to Charles-Henry for highlighting this). Although this is remarkable, the bigger issue today may well be whether we’re going to see ‘technology corporate singularity’. The extent of the free cashflow of three leading Ai companies is well over $100bn. If you have technology which is capable of delivering a massive cost to serve advantage, then buying large swathes of industry would seem a good use of capital as your core growth rates start to decline, especially where there’s captive data which makes your ‘fly-wheel’ better at creating value from it. Currently there appears little to stop this happening, and it would seem odd, in the long run, that all companies would be satisfied with solely an external service provider role. All is not lost for the non-technology sectors, valuation wise, but we should begin to think about an alternative definition of anti-trust, as you may not be purchasing a dominant market share today but the superior application of AI should be able to get you there. The playing field is no longer level, the returns to the AI enabled will dwarf those created through merger by the incumbents. Not sure we’ve thought through the true consequences of ‘winner takes all’ .
Chief Investment Officer & Member of the Executive Committee at Syz Group ¦ 190,000+ followers
All German stocks are now worth less than Nvidia. Germany's stock market value is just ~$2.5tn, Nvidia's value is $2.62tn. This week, Nvidia has gained $348bn in value, the combined value of traditional comps Siemens, Deutsche Telekom, and Mercedes. Source: HolgerZ, Bloomberg