"Energy Capacity = Economic Capacity" Former Intel CEO Pat Gelsinger on why America's power grid is the ceiling on growth: "We went through 10 to 15 years where essentially I was taking coal offline at the rate I was adding renewables, and essentially the nation was flatlined in terms of overall energy capacity." "So essentially our economic capacity as a nation, flat for fifteen years." "Even with that, we've gone to maybe increasing our national energy capacity 4% per year. Going from essentially zero to one." "Nuclear as base load is a fabulous thing that we want to go build more of. Unfortunately all of our renewables have deep dependencies in China." "Energy capacity somewhat dampens how euphoric we can get on AI. Why build a new data center and buy the million GPUs if I can't power them?" @PGelsinger @RaghuRaghuram @appenz

The Optimus factory construction at Giga Texas is progressing rapidly. It'll be a massive 7 million sq ft facility with a targeted capacity of 10 million Optimus per year. Initial production is planned to begin in 2027. The Fremont facility, planned for 1 million per year, is expected to begin production this year.

Neros was the only company to be selected on both missions in Drone Dominance. This secured us a $100M order that we are ready to deliver on rapidly. We're hiring- come join the winning team.

Introducing our State of Markets pt 2, along with a companion podcast where we unpack the data and discuss what comes next. Tech is the everything cycle. Supply: putting the buildout in context, just passed railroads as % of GDP. The wisdom of Elon is real: the factory (or the datacenter!) is the product. Demand: diffusion is so, so early. Median AI vendor spending in the top 1% of companies is 8x that of the top 10%. Only about 30% of S&P 500 companies report a quantified AI impact, which means there’s a substantial opportunity in connecting models to a company's data and workflows. Diffusion into companies is one of the main themes of the next 5 years. We’re entering the agent work period. Only a few million users today, but applicable to billions of internet users with massive surplus created. META/GOOG monetize US users at $200+ per year today. Agent opportunity is much higher. Mega-trends the next 5 years: Consumer agents, Robotics, Autonomy, AI x bio, Personal health, Diffusion into enterprise, New era of American Dynamism. Much more in our SoM report here - a16z.news/p/state-of-markets… @a16z @sarahdingwang @aleximm @santiago__rdz

a16z's David George, Sarah Wang, Alex Immerman, and Santiago Rodriguez on the State of Markets, from AI and infrastructure to the next investment cycles: 1. Tech is the everything cycle. High-tech equipment, software, and R&D are now about 55% of US capital spending, and the AI buildout just passed the railroads as a share of GDP. The five largest hyperscalers will spend about $780B on capex this year, heading past $1T in 2027, and demand still outstrips supply at every point in the chain. 2. It's an earnings story. Stocks are up about 20% while multiples are down about 20%, and the S&P trades under 20x earnings. The market is up 90% since ChatGPT, on 15% earnings growth. 3. AI adoption is broad and shallow. 69% of the S&P 500 has a live AI deployment, 30% report a quantified result, and just 2% have AI doing a job they'd notice if it stopped. The power users are pulling away: the top 1% of AI spenders spend eight times the top 10%. 4. The private markets are enormous. Six private companies, Anthropic, OpenAI, Databricks, Stripe, Waymo, and Revolut, add up to about $2.4T by last round, more than every IPO of the past decade combined. "The founder is the asset class. The IPO is another financing event." Plus: why a data center can lower your electricity bill, what Amazon saying no to Muse and Instacart saying yes tells you about marketplaces, and the seven areas the team is most excited about next. 0:59 Charts from State of Markets II 2:59 Tech is the everything cycle 4:56 Is it a bubble? 6:31 Hyperscaler CapEx: $1T next year 12:12 CapEx is someone else's order book 14:36 Data centers can lower your bills 17:06 OpenAI and Anthropic vs. some of the best software companies ever 18:22 Enterprise AI: 69% adopted, 2% measured 20:32 The top 1% spend 8x the top 10% on AI 24:36 Spending on AI for growth or for savings? 28:46 Only 2% of households pay for AI 31:36 Amazon blocks Muse, Instacart welcomes 36:16 Software traded growth for profit 42:56 6 startups vs. a decade of IPOs 45:46 Why employees are turning down liquidity 48:44 Seven areas they're excited about YouTube: youtu.be/lr3hNhA0IfQ @DavidGeorge83 @aleximm @santiago__rdz @sarahdingwang

.@ADoricko of @RainmakerCorp with @gregorymbernn or @newindustrialco on the forum stage of Reind 3.0

i don't think nearly anyone, myself included, has truly internalized there'll soon be a machine better than us in every single intellectual & physical capacity deep down we all share a feeling that our 'entrepreneurship' or 'taste' or... is special & safe. it isn't. it's over