THOUGHTS ON THE AI BUILDOUT

Summary from the TLDR Founders newsletter

AI growth is facing physical limits. Nvidia's profits could fund several new TSMC fabs, which means chip demand now exceeds the cost of producing them. The real constraints are power, materials, and labor. The world needs more factories for turbines and transformers, and hundreds of thousands of skilled workers to wire and cool datacenters. Speed now matters more than efficiency, so natural gas is beating nuclear and solar for new power. Hyperscalers are moving off-grid, building modular datacenters, and paying suppliers more to accelerate production. If growth continues, tens of gigawatts of new capacity will come online each year. Even if the boom slows, it will leave behind a massive industrial base ready to deliver cheap, rapid compute for decades.