Transcript was automatically generated.

0:00:16 – Frank Curzio

How’s it going out there September 24th? I’m Frank Curzio. This is the Wall Street Unplugged podcast where I I break that handle. Let’s end. Tell you what’s really moving these markets. Daniel Creech. What’s going on, man?

0:00:31 – Daniel Creech

What’s happening, frank? Hello, hello, another beautiful Wednesday.

0:00:34 – Frank Curzio

Yeah, if you guys are watching on a YouTube channel, you can see the new office, actually the new studio. It’s going to be all fixed up. Daniel still has his little brick, gray brick background. It’s a little different. The whole office is going to be different. It’s going to be really, really cool. So, yeah, I’m going to get couches, I’m going to have it more produced. Lots of new stuff, fun stuff coming. It’s going to be good for everyone involved.

Trust me, now I can talk with my hands. I don’t have to control everything, which is gonna be fun. So I like to control my hands all the time. Gotta talk with them should be fun. But, uh, I want to say two things. To start out, today is my youngest daughter’s birthday. She’s 15 today. Happy birthday, that’s britney, and celebrating later it’s gonna be really cool going out to dinner, mexican, which is our favorite, got some nice gifts. And then I wanted to say my second daughter, my other daughter, which is, which is my oldest, who’s 17, going on 25. So I don’t know if I told you this, daniel, but I punished her last week Actually it wasn’t too long ago, a couple days ago because she talked back to me.

She didn’t talk back to me in a way like teenagers all teenagers talk back to their parents. Now it was very loud, it was in a public place and I was like like that’s it, I’m taking your phone away. So I took a phone away. Did the dad responsible thing? Right, I took a phone away. You know what she did.

You know this kid did? She got a burner phone from best buy and I took a phone away. And then she calls me like the next day from another number. I was like what are you using your friend’s phone? She’s like no, I was like whose phone this is? She showed me you got a one month plan for like 30 bucks or something that she can cancel. And I looked at her and I was like you got to be kidding me. And after she turned away I was like wow, that’s pretty impressive. These kids, kids are getting smarter and smarter. Right, punish them. I don’t know, it’s just uh nuts, but anyway, happy birthday to my one daughter and my oldest. Yeah, I want to kill her even more, but yeah, everyone knows having teenage daughters or sons, holy cow, especially daughters, I think. I think my hair is getting more and more gray by the day, so I’m not sure, but it’s pretty crazy right now, but it’s a lot of fun. But I wanted to start off with that, especially the happy birthday to my youngest.

0:02:46 – Daniel Creech

So what’s going on, man? How’s everything? Good, good, yeah, the silly spending continues to go on.

0:02:50 – Frank Curzio

You know, the spending within AI is really insane right now. So one of the top stories this week was NVIDIA. They plan to spend up to $100 billion, along with you know, in open AI as part of a data center build out. So it’s $100 billion and I think that was two days ago or maybe100 billion, and I think that was two days ago or maybe yesterday early. And then Alibaba said today they’re hiking AI spend which is going to be more than $50 billion.

This follows deals we saw the past couple of weeks with Microsoft’s $17 billion deal with Nebius for GPU infrastructure. Nvidia deal with CoreWeave that was $6.3 billion. I mean this is the past couple of weeks. Anthropic raised $13 billion for $183 billion valuation. You have Musk doing the same with XAI looking to raise $10 billion. Dow placed that valuation at $200 billion. Oracle receiving a massive investment, we think pretty sure from OpenAI. That pushes backlog from $150 billion to $450 billion their long-term backlog. Billion to $450 billion their long-term backlog. So these investments made over the past three weeks or so total over $400 billion. Dan, what are your thoughts on that? $400 billion? Holy cow, that’s insane. It’s insane.

0:03:57 – Daniel Creech

Yeah, it is insane and it just shows you that the bears and everybody that is excited to call the top and to say that this is more than a bubble than anything else have to be just extremely frustrated right now Because, as we’ve tried to keep everybody on the same train here, you know at some point spending will slow down, but we are clearly not there. And the thing that I’m trying to wrap my head around is these projects are going to take years. I was impressed. I don’t know which one you want to go into detail first around is these projects are going to take years. I was impressed.

I don’t know which one you want to go into detail first, but one of the deals with OpenAI and a data center out in Texas, in different places, they’re going to bring on about one and a half gigawatts Think of a gigawatt, you know, powering the city of Denver or something. So one and a half gigawatts by the end of next year. And I think I mean you can get lost in the excitement, the billions and the gigawatts and the demand and all that and that’s exciting. I just I think the faster and the more clear you can interpret or, excuse me, communicate to how fast. These are coming online because the gap between demand and power generation is really where this all leads. But I just, you know, do not fall in the camp of trying to say, hey, this is a bubble, this is getting ahead of itself. Maybe it is, but this is going to take time to play out and build out. No pun intended on that. But just you know, stay invested.

0:05:12 – Frank Curzio

This is a wave of momentum, that there’s no reason to think that it’s collapsing right now. Yeah, when you look at bubbles, bubbles have to do with, you know, this excess supply that comes onto the market because of expected demand and then the supply gets out of hand and then you see this bubble burst. We’ve seen that in numerous industries, especially dot-com. We are seeing massive amounts of demand and there’s a reason why I mean, if you’re looking at $400 billion, daniel, I’m going to put this in perspective for you the global oncology market size, not US, the global oncology market size is $225 billion. That’s a total addressable market $225 billion. Remember, $400 billion. We’re highlighting in just the past three weeks in terms of spending the cybersecurity market, which every company in the world needs to spend those Fortune 500 companies to protect their customers’ IP from hackers is $200 billion for the year. We’re looking at $400 billion in announcements in the past three weeks. If you want to go more into specialized technology, 3d printing that’s a $25 billion market. Remember, with global smart glasses and meta changing their name to meta right For just the metaverse and all this online and gaming and virtual reality stuff, the global smart glass market is $8 billion. These companies spend $400 billion.

This is by far the biggest trend anyone has seen in history in terms of CapEx and spending. No one has seen anything. I’ve been covering the market for 30 years not at this scale. How many times have we were told by the media not by us? We knew because we have great contacts in this industry. We’ve been covering this trend for a while not just AI, but especially within power and how much consumption is going to need. It’s unbelievable and I’m going to show you some stats in a minute. But we heard so many times that this trend was over. It’s not over, it’s accelerating. It’s accelerating. It’s accelerating. It’s global. There’s more and more players coming in, china’s coming in, middle East is coming in and it’s getting bigger and bigger.

But the biggest story on CNBC yesterday, I felt, was the follow-up to the OpenAI-NVIDIA deal, which was titled NVIDIA, and OpenAI’s Monumental Data Center Plan again, this is their title has an equally massive problem when to find the power, and I’m going to bring that up right now. This is from yesterday. Where they’re going to find the power, and I’m going to bring that up right now. This is from yesterday. Where they’re going to find the power. This is something we talked about, daniel, over and over and over again, because I have no idea. As someone that’s been covering this trend for a long time, and especially the last nine months, looking at data, going over the deals, going over the technology, going to consume electronics show, understanding the power needed by all the new chips coming out, I have no idea how we’re going to get this power. So tomorrow, what we’re doing? At 7 pm, we’re holding a live event and it’s called AI Power Crisis how to Profit Before the Lights Go Out. You can register by going to wwwcurzioaicom. The event is 100% free. It’s 100% live. So it’s not the fake live where you’re going to see a lot of these presentations, where this is live and they tape them before. No, we’re going to be live. If this new studio anything falls or whatever, you’re going to see it live, which is cool. I’m hoping everything holds up well because the studio looks really nice. But I’m going to give you a little preview for tomorrow, daniel. I want you to listen to some of this stuff, because we go back and forth In the last couple of weeks. We said listen, we have to have an event, we have to hold this live, we have to go over the AI power and it just so happens, the past three weeks. The amount of news that’s come out is insane about this, but here’s a preview of what you’re going to hear tomorrow.

A traditional search in Google uses about 0.3 watts hours of electricity. A single query using ChatGPT uses 25 times that amount. You may be familiar with that. People cite that. Okay, that’s fine, right? It’s a stat that you could probably find if you did a simple Google search. What the hyperscalers and electricity companies aren’t telling you is this is just for a simple request using a large language model like ChatGPT. A lot of you use Lama, gemini, grok, claude, whatever. That’s just for large language models, which is simple Just plug in something and it gives it to you.

However, when you look at AI in terms of trends within the major trend this is yesterday’s news trends within the major trend this is yesterday’s news the real trend within AI is in the first inning. It’s inference, agendic AI, and this is where AI is learning to train itself. And what exactly does that mean? It means that when you’re punching this stuff in, they include reasoning, understanding. The language model itself is asking questions about the outcomes. They draw conclusions, they make informed decisions, they’re predicting their learning every single second, every single minute, every single hour, whatever you want to put Constantly learning that, and then they’re going to operate independently and autonomously, and that should be pretty scary. Now, this type of AI that it’s very hard to find. This data, this type of AI uses 79 times the amount of electricity compared to traditional AI, large language models 79 times.

And if you want further proof of how crazy this is and the energy crisis that we’re in, look at a company like Oklo. This is a company that’s developing small module nuclear reactors smrs are called of which their first commercial nuclear reactor, daniel, won’t be operational until 2027, which probably means 2029. This company right now is trading at a 20 billion dollar valuation and generating zero revenue. That should tell you. And I was wrong on this stock. I said it’s 20, 30, you’re crazy. And where is it now? I mean, it’s through the freaking roof. Do you know what the stock price is for this stock? It’s insane.

0:10:51 – Daniel Creech

I’ll check.

0:10:52 – Frank Curzio

I know it’s, I know it’s doing well I mean, it seems like it goes every single day. Well, it’s not up today, it’s 138, 138. Look at this. So this is oklo 138 and just off its record high $20 billion market cap, and if you scroll down, it has zero revenue, zero revenue, zero revenue. You wonder why? Because this is where you’re seeing massive, massive demand. These companies need power. You want to know why every uranium company is going through the freaking roof right now? This is the case as well. You want to know why solar companies are surging right now. It’s just the beginning for this industry, because when you look at microsoft, google, amazon, meta, openai, grok they every one of these guys.

They know we don’t have enough electricity power, ai demand starting pretty much in six months and the forecast for 2030 that I’m looking at are an absolute joke. Where, in 2024, our global data center power consumption was at 55 gigawatts? Okay, and I’m going to post this up. Hopefully you see this. This is the global data center power consumption projections and something you’re going to hear about tomorrow. Just give me a little taste. In 2024, daniel, we’re using 55 gigawatts. Okay, end of 2024. By 2027, they’re predicting 85 gigawatts. By 2030, they’re predicting 145 gigawatts. Okay, this is the power consumption.

These are projections from Goldman Sachs and also the EIA. When you look at these projections, it is impossible to get to that level. And I’m not sure if you know about the power industry and the only reason why I know is we’ve got great contacts in this industry and utility companies as well. It takes a ton of money and a shitload of time to build the infrastructure for just a 5 gigawatt increase, and I’m talking about 7 years, sometimes as long as 15 years, to build some of this stuff. But to triple this capacity where we’re going to need 90 gigawatts of new power in 5 years, it can’t happen. And the best part is Goldman and EIA’s forecast. What I’m showing you 145 gigawatts by 2030, it’s not even in the ballpark of how much we’re going to need. It’s super conservative. And when I show you these statistics, there’s a company called RAND. Have you ever heard of RAND, daniel? No, it’s been around since 1948, formed after World War II.

Uses fact-based analysis, independent analysis, nonprofit, nonpartisan research think tank, very respected. They’re predicting you hit Goldman Sachs all the time. You hit Morgan Stanley. I have all those projections for you. They’re all wrong. These guys are projecting. Global AI data said the power demand could reach 68 gigawatts by 2027. Now, if you compare that to 2027, that’s 85 gigawatts. That’s below Goldman Sachs projections if you take a look, okay. But now if you’re looking at 2030, they’re projecting 327 gigawatts by 2030. 327 gigawatts? Okay, let me bring that chart up again and show you, because Goldman Sachs, they’re projecting 145 gigawatts, right?

0:13:59 – Daniel Creech

Yeah, a little bit of a difference this.

0:14:01 – Frank Curzio

I mean the difference in this I don’t even know how to put in perspective. I always joke where I use analogies. It’s almost like you’re up 100. Nothing in basketball, professional basketball game. I mean it’s something that that can’t happen. You don’t see right. It’s just, it’s unfathomable when I think about how much energy that we’re going to need and there’s absolutely no way we could achieve this. But the hyposcales are spending like we can. But the thing is, something has to break. And when you see the analysis, you see the statistics and Daniel, you and I talk about this all the time I mean I have no idea how they’re going to get this power. Maybe you do. I have no idea. I have no idea. Oh, you turn to me.

0:14:42 – Daniel Creech

Yeah.

I’m turning to you because I’m looking Well like I said, there’s going to be a supply gap and it’ll be. I don’t have the exact answer, but it’ll be. It’ll be a blend of, you know, trump waving the magic executive pen to see what can help. Their reforms can make a lot of headway. But the nonstop momentum here, in my opinion, is I’m not so much worried about can we do it, but I mean not to say that I’m not worried about that, but more of, like I said, I’m excited about the timelines approaching, because we’ve kind of joked about this, but I love checkpoints or places that you can hold management accountable. So the best thing about one of these announcements was this 1.5 gigawatts at the end of next year or whatever. So I’m curious about the timeline. I’m, you know we’re so early in it. In my opinion you can say, hey, you know, we’ll have this built in two years. Well, in six months or a year from now, it’s going to be harder to say that without knowing if you’re on track or not. That that’s my big thing.

But the underlying thing here as well is we’ll talk about more tomorrow is the underlying trend in my opinion and I’ll get your opinion on this frank is no matter what. Unfortunately, electricity prices are probably going higher. So investors need to look at everything from power demand and generation all the way to the end user of either electricity or chips or whatever. And again, I’m not. I’m not happy about higher prices, but in the short term demand excess demand leads to higher prices. Typically it will average out over time. No consumer likes that in the short term, but really the opportunity from power plant to end user, frank, is pretty remarkable.

0:16:22 – Frank Curzio

You know I just shared a small portion of the data, a very small portion of what we’re going to show and highlight tomorrow that I’ve been spending close to nine months researching and I could tell you tomorrow there’s going to be hedge fund managers on our call. They’re going to be tuning in to this event. Higher ups at utility companies are our contacts going to be tuning into this event. We already have over a thousand people registered and we could double that by. You know, we’re really heavily marketing it today and tomorrow into the event. That’s usually where you get the most signups. Already, a thousand people have registered. But I’m also going to be sharing more in-depth data about how we’re in an energy crisis right now. It’s not coming. People think, oh, it’s going to come next year and we’re in trouble. It’s right now. The lights are going to go out, starting in Texas in about six months, and this is based on data, not some BS forecast I made up and you’re looking at it. You’re saying how could that happen? Well, when you have, you need 24-7 baseload power. What’s 24-7 baseload power? It’s available every second of the day. And if you look at wind, you look at solar. That’s not baseload power. If you look at thermal energy, it’s not baseload power. If you look at uranium, it could be yes, absolutely. If you’re looking at natural gas, yes, something that’s going to power you the whole entire time. It’s not going to shut off and on. If you get thermal energy in the right spot, you could have that. But you’re seeing so many sectors within energy is starting to take off and You’re seeing so many sectors within energy is starting to take off. We know about uranium, we know about natural gas and some of these companies as well. Which is going to power most of this? But there’s just so many industries within alternative energy that I hated for such a long time. But the economics are now making sense because electricity prices are going through the roof and when you look at Texas and the massive demand that you’re going to see, they cannot have the AI capacity 24 capacity, 24 7, and that’s a problem. So when you have peak demand for electricity coupled with this massive demand for ai, you don’t have enough power within the grid to power it. So they’re trying to find out. Okay, during those peak hours, what could we do? Is it solar, is it batteries? How do we provide more power SMRs during that time, because people aren’t just suddenly not going to use AI and say, oh okay, you know what, I’m not going to actually search anything AI, do anything AI, whatever inference between 3 and 7 pm? No, no, freaking way. And that’s where you’re going to see blackouts occur. And you heard it here first. It’s going to happen. It’s a mathematical certainty, right? Because you look at electricity prices, where they were going to go up 1% annually, 2% annually. Now you’re seeing forecasts with 2.5% annually. I’m going to present data that’s going to show you and this isn’t coming from me. It’s coming from the company that provides electricity for Texas and the states around it, saying we’re going to see 9% growth in energy demand 9%, which is unbelievable off the charts. Okay, so I’m going to have quotes from actual utility companies saying we don’t have an idea of how we’re going to get this power.

Some of this stuff’s been buried everywhere. I’m going to disclose the secret meeting that took place at the White House Everyone saw it on CNBC when Trump was asking Tim Cook how much money are you going to spend? Oh, 500 billion. Say it again Okay, 500 billion. That’s me. I did it. I did it. I told me that wasn’t what that meeting was about the meeting that took place about a week ago, which was at the White House. We saw Tim Cook. You saw just the top CEOs from all the hyperscalers who were there. I think even Bill Gates was there. You have Zuckerberg. That were there. Elon Musk wasn’t there. That had to do little with creating jobs for Americans and 100% to do with how in the fuck are we going to get the power to fuel the AI boom in the future, because nobody knows how we’re going to do it.

That’s how fast this is moving, and I know this stuff sounds insane, but the real purpose of this live event is how can you make a fortune from the massive spending spree and the power crisis, because so many times you’re on the sidelines of so many of these trends, and especially this one where you’re not only going to be on the sidelines, it’s going to cost you a fortune, because I know all of you. If you have houses, I don’t care. If you have apartments, look at your electricity bill. You’d think it’s high. Now, wait six months from now, wait three years from now, wait five years from now and 10 years from now. They’re going to continue to go higher and higher and higher. Look at the auctions. Look at everything that’s pushing through, look at all the arguments that are happening. Again, you could find a lot of this data if you dig when people are like how are we going to afford higher electricity prices? We just don’t have enough infrastructure. And this massive demand is continuing. It’s not slowing.

We just talked about, we highlighted, how many deals, daniel, just in the past three freaking weeks 50, 100 billion dollar deals. So during this event, I’m going to show you how to make a fortune. I’m going to give away three stocks for free, all of them relatively small market caps that are right in the middle of this massive secular growth trend. Going to show you exactly what sectors you need to be in, since it’s not just about nuclear and natural gas. You have hydrogen, you have solar, you have wind, even coal. And, daniel, this is a big problem. We talked about this offline.

Where coal? Right, they’re phasing out coal. They were supposed to phase out coal, oil of coal right now, and they’re phasing it out much, much slower. Because, because they can’t afford to, because that helps power, electricity as well. Coal, coal, the death of the world, coal. Let me use coal. Everyone’s going to die. We’ll use it for how many freaking years and we’re going to need these forms of electricity, which a lot of stocks are operating in this field and changing their business models and have power, just power that they accumulate in terms of megawatts. That is worth an absolute fortune. Now, even Bitcoin miners right, they’re using it for tier one, bitcoin mining. Listen, you have the halving, which means your margins every four years are going to cut in half, no-transcript. So this is where the biggest trend within AI is and the future of AI when it comes to the power generation and a future of our country, a future globally, is going to be AI. I know it is. You should know it is 100%. I’m not talking about just AI in the classrooms marketing. We’re talking about warfare, discovering more energy in oil fields and nuclear pharmaceuticals, discovering new drugs to cure cancers, alzheimer’s, all kinds of diseases.

Robotics Soon we’re going to see families with robots in their home. This is all coming. This is in the works. You could see a lot of this stuff. Go to Consumer Electronics Show this year. You’re going to see a lot of this stuff. I’m getting emails. Everybody’s going to be there. This event was kind of crappy the past couple of years, ever since COVID. This year it’s going to be insane. All the major companies are going to be there highlighting everything within AI. This is the world. This is going to be part of all of our lives. Everything we buy, everything we do, everything that requires thinking. So it all happens. In order for this to happen, you need the power.

So tomorrow, 7 pm, september 25th, you can join us for free by going to wwwcurzioaicom and registering. There are over 1,000 people again that sign up to watch it. Once you register, you could ask questions. You’ll go into queue. We already have lots and lots of questions that people are asking. Daniel and I are going to do the live Q&A after our presentation, where we hang out, have a couple of beers, answer as many questions as possible and sometimes that goes on for a while, depending on how many people stay in a room. The last couple of conferences, the last live events, we had 60, 70% of the people stayed around. I was like all right, let’s stay around. We’ll answer a couple more questions. Sometimes it goes an hour, an hour and 15 minutes for the Q&A. Again, that’s live, but now you can ask any question you want during this. So again, sign up wwwcurzioacom.

Trust me statistics that you have no idea what’s going on. We’re going to tell you what sectors to be in, what stocks to be in, help you out tremendously along this trend, something that we studied a lot and it’s going to be a lot of cool people tuning in. It should be a lot of fun tomorrow. A lot of questions. So we’re doing that for you again. Free live tomorrow, 7 pm to register at CurzioAIcom. I’m actually excited because now all this stuff, all the statistics getting everything together over the past week or so, it’s a lot of fun. And when I say research, daniel, as you know, we have access to all the sell-side reports. So Morgan Stanley, goldman Sachs, these are the reports I’m reading.

If you want to know how to make money in stocks, it’s very simple, because when you watch CNBC and you’re looking at the analyst reports, that’s the status quo, that’s what everybody believes, what’s going to happen. Those are the projections. When you say hey, I see is super, super conservative, because they’re not projecting the next generation of chips, which come out every nine months and it could require much more power. All their models are based on the current generation of chips. It’s not based on the massive amount of spending we saw the last three weeks, which is a huge acceleration, but the power is where you’re going to make the most money in this. You’re going to make 3x to 10x even more gains.

We’re sitting on gains like that in our portfolio right now, some of them within energy with our Curzio AI portfolio. That’s what we’re going to bring to you tomorrow, which should be a lot of fun, because this trend you need to be in. It’s very, very early when it comes to agentic AI and just people are not understanding how much power we’re going to need. We can’t fulfill that demand, and there’s a lot of stocks like Okla, which I missed, we didn’t miss. Other ones like Bloom Energy we didn’t miss that one, which is up tremendously. There’s a lot of stocks that have tremendous upside potential. With the amount of demand hundreds of billion dollars filtering into that. A lot of these small caps just need a little bit.

No-transcript live event. Yep, tune in. So there’s a couple of more things that I wanted to talk about here, daniel, because even if you’re looking over the past 24 hours, we’ve seen several things. Right, we right. We saw a CoreWeave interview with Glenn Hutchins, which you mentioned, which I want you to talk about.

Just talk about CoreWeave, because we saw CoreWeave come down and we saw a short report and the short report came out on CoreWeave and I read it was from Carisdale Capital and like the five bullets that they had as a reason why CoreWeave was going to go down. 90% was a couple of hours that show report was released and a couple of hours later in the afternoon, corby signed an over $6 billion deal with NVIDIA, which addressed saying Microsoft is 70% of their revenue. However, now they branched out when it comes to Corby with OpenAI and NVIDIA. They said that there’s just a lot of hype around this. They highlighted the debt and everything, but every single thing was addressed just from that one deal coming out. And I think they came out and that stock was around $100 to $133 now. But Glenn Hutchins came out great guy. You’ve seen him on CNBC. If you see his face, you know him with the CoreWeave interview.

0:27:23 – Daniel Creech

And I know you looked at that and went through it, which is really just highlighting, as well as energy and how cool we was just in a perfect position to benefit from this trend. Yeah, and one of my big question marks that I hadn’t been able to figure out is you know, what are the GPUs worth a few years from a depreciating standpoint on their balance sheet? And I’m getting a little over my head here, but it is something to think about that. You have access, you have partnerships with NVIDIA, the king of AI and chips. You get these chips in two to three years Again, right now, nobody cares, but in two or three years, when they have to replace those, it’ll be interesting to see hey, what are they worth? What are they going to be used for? And, on top of that, the deal CoreWeave just replaced or took that risk out of the market because they did a deal with NVIDIA to where 6.3 billion NVIDIA is going to buy all the excess space or capacity there is.

And what this gentleman, hutchins, said he was talking and Andrew Ross Sorkin, I thought, had some decent questions and was asking about how do you value these chips? And Hutchins said it doesn’t matter over the appreciating life, and that’s what shocked me. And in fact, he said that chips are generating two times the money over the depreciation, and he said so kind of off the cuff. He said even if they’re worthless in four or five years, it still works on this. And what he meant by still works on this is the financing side and, frank, I want your opinion on this because I think this is genius was the reason or what and I’m paraphrasing some here, because he’s from North Island Investments I think that’s the correct name, but North Island and he was saying how one of the things that attracted him he’s a director or the lead director for CoreWeave was their financing deals, and he said a couple of things that really stood out to me. One is that everybody is mimicking these kind of vendor financing deals now, and two, it brings on your critics, which I think is a fine opening for a great conversation.

But he also talked about how and I think this is the bigger picture he talked about why all the manufacturing was in Taiwan and Asia, and it’s because those are the only places and again, I’m paraphrasing here, I’m not trying to play gotcha he was explaining how, when the semiconductors were really booming, you needed basically a larger balance sheet. You needed bigger financing opportunities and Taiwan would lend you the government’s balance sheet essentially, and that’s how that got it In Asia. China specifically is very popular Now. Us in the good old US of A Frank put a cork in Intel equity stock. Now we’re taking in Canadian mining stocks.

Evident you know that stock’s up 100 anyway the point there is what I think he what, what triggered me when he said that about taiwan and needing a sovereign or government balance sheet, and then these sovereign wealth funds. When you think about, in my opinion, he is just foreshadowing on where we are going. Again, we joked about intel and lac and the slippery slope that is. But if we are in a shift to where you’re going to see larger players, institutions, Southern wealth funds and governments ie the largest and most powerful government and us under Trump that’s even worse, in my opinion, for the macro, but better in the short term for stock prices. And so with this financing deal, essentially. And so with this financing deal essentially. Frank, I didn’t know this. Does this shock you? Data center loans, Okay, Forget if you’re signing Microsoft and the big dogs, but a data center loan would cost you around 10 to 12 to 13% in interest. I have to admit, I was reading through reports that surprised me to the high side, because of just the data center. Hey, what are you doing? We’re building a data center. What are you going to do? All you got to do is mention AI. I would think that’d help you out. Evidently not Now, when you bring on a Microsoft, an NVIDIA, a Meta, somebody with deep pockets, six to seven percent. Again, I’m being very general here for a purpose.

The point is the breakthrough here that CoreWeave did and then, to your point, really nobody paid attention, recognized or was knowingly, until the gentleman went on and did that good interview on CNBC shortly after the IPO tanked. You know, if you remember that it didn’t take off like Circle and the other ones. It meandered and moved lower. But the point is they’re matching the short-term cash flows and basically guarantee from the big dogs of the Mag7. And then they are parlaying that over time and I think that’s amazing, because I do think it’s a good conversation to say hey, Frank, I think it’s low, easy fruit for a critic to say NVIDIA pledges $100 billion to open AI. Nvidia’s stock goes up $160 billion market cap. Now stocks go up and down.

I’m just having fun with that. For every $10 billion NVIDIA spends on OpenAI, OpenAI buys about $35 billion in NVIDIA chips. Now Ponzi can come into this conversation. But you can’t stop there. You can’t just say, well, that sounds like a circle whatever and move on from there. The you can’t just say, well, that sounds like a circle whatever and move on from there.

The point is, it’s not as crazy as it sounds if the demand continues to be there, and no offense, you do not want to get in front of this 800. There’s $2 trillion in global spending on AI et cetera pledged, and these are round numbers and, as Frank was just joking about not joking but having fun with the 850 extension from OpenAI is about half of that, Frank. So again, I just I think there’s tremendous opportunity here. This is, without a doubt, one of the biggest, if not the biggest, trend in a generation, and I hope everybody’s participating, as you should be so far. So, but the financing, Frank, is what I want your opinion on. Do you think it’s? Do you think it’s crazy to see everybody just kind of intertwining and making everybody nervous, or is this a house of cards on concrete and it’s?

0:32:38 – Frank Curzio

going to work. It’s not a house of cards because everyone was worried about your return on investment by spending this money. I don’t know if you saw the results last quarter and the quarter before for the hyperscalers. If you don’t think they’re benefiting, you’re out of your mind. I mean you’re talking about record profits massive, massive profits. I mean you talk about even depreciation of chips. These guys need the fastest, the best chips, because you’re talking about four or five companies with trillion-dollar market caps, some of them with $3 trillion, even $4 trillion market caps right now. I don’t know if Apple’s at $4 trillion yet, but I know that NVIDIA was at $4 trillion recently, which, the right technology, within a six-month period could swing your market cap a trillion dollars. So if you don’t think that’s worth their spending, which they’re generating massive hundreds of billions of dollars in free cash flow, I mean their balance sheets are huge. You’re seeing these companies lay off employees because they don’t need as many employees with AI.

When you’re looking outside of the hyperscalers and the next step down, there’s a mass amount of companies that are going to need these chips. Right, they are. It’s almost like using the best chips before AI were for Bitcoin mining. Right, the ant miner systems. You don’t need that for gaming, right? You need good cards, good GPUs for gaming Right, that’s great. You need good cards, good GPUs for gaming that’s great. You don’t need the same. So companies are going to be able to use these GPUs, even on a slower scale. A ton of these companies Just the hyperscales are going to need the best technology, the latest technology, the quickest technology. That’s what they’re going to need. So, in terms of depreciation, these mean you don’t see this massive depreciation every single year for these cards because there’s other uses for them outside of what the biggest uses are for the hyperscalers. So I’m not really worried about depreciation schedules.

But what I do know, covering trends, is when the spending slows. Look out, and we’re not seeing the spending slow. The contacts that we have have said that the whole entire time, all the whole world was saying on CNBC we’re slowing, they can’t get a return on investment. We’re hearing from our contacts who build these facilities that we’re saying we’re not seeing a slowdown. Yeah, microsoft might not put up all the money or they may lease something instead of buying it. We’re not seeing that, right, and just the last month is proofs going holy cow. Look at this stuff. But what that’s leading to is these secondary industries they have to pay attention to because they’re going to need a ton of energy. And then you say, ok, well, energy, all right, well you have. I mean, uec is at 30. Somebody came out with a short report at like 11 for UEC and just got annihilated. Already it’s like 13, 14, whatever they got upgraded, I think today right.

So I mean you’re trying to. I mean, when you see a company like oklahoma with no revenue and just the future, the potential of how much demand they’re going to see at a 20 billion dollar valuation, with no revenue, you’re nuts trying to short one of these companies because there’s just this massive need for demand that companies are going to pay. I Three Mile Island that deal with Microsoft, daniel holy cow. That’s not going to be available for five, six years before they can actually tap any of that power. They signed a 20-year agreement after that to acquire all that power. This is how far out that they’re looking. These are the smartest guys, the smartest engineers, the smartest people in the world that work for these companies. They get paid an absolute fortune. They’re not getting this wrong. For anyone to say, oh my God, cnbc, they have no idea. What are you out of your mind? You know how brilliant these guys are. They know exactly what they’re doing, exactly, and they’ve been through ups and downs. They’ve been through Microsoft, amazon, apple. I mean they’ve been through COVID, they’ve been through the credit crisis. They’ve been through the dot-com bubble. They understand when stuff is slowing, how to cut immediately. They’ve been through this already, right, and they’re not. They’re accelerating their spending. And another acceleration that we recently saw is Alibaba, and this happened yesterday and they’re increasing spend to over $50 billion. But the biggest story here, right, the spending and everything that’s all over the place. But when I started looking under the hood, they just released new applications for this language model called I think it’s QEN, q-e-n, qen3. I may not be pronouncing that, right, it doesn’t matter. So they have new variants across text, vision, audio and safety. I want you to hear this. So these are some of the details. One of their variants I think there’s eight new variants that they released. Right, it shows at its top version, it achieves perfect scores across math reasoning benchmarks. Already, alibaba wasn’t even in this conversation. Right, they weren’t even in this conversation, like a month ago. Another variant is capable of processing text, images, audio and video, while supporting speech understanding in 19 languages and generation in 10 languages. Another variant grades out as the top non-reasoning and open source visual model, while also surpassing top close-in models on a series of benchmarks. Now, why is this such a big deal? Because when you look at OpenAI, you look at Anthropic, you look at Google, look at Lama. Their release schedules happen every month, every two months and they’re conditioning us to be like hey, every couple of months we’re going to have JATGPT-5, is going to come out of JATGPT-4, and look at the new Gemini 2.5 model. Right, they’re conditioning us to come out with these models every few months.

In China it’s different. Not just Alibaba, all the China companies. They’re doing the opposite. It they’re doing the opposite. It’s like this rapid fire throw the shadows as fast as you can, flood the market with new advanced options. So they’re comparing Quinn to DeepSeek already.

And this wasn’t even in the conversation. Alibaba wasn’t even the kind of yes, they have huge cloud capabilities. Yes, they’re getting into AI, but not to the point where they have faster models than what’s existing already. That wasn’t even a conversation. You wonder why China I mean they say it’s all grandstanding of, why they say, hey, we don’t need NVIDIA chips anymore. I don’t know, maybe they don’t after seeing this. I mean, they knew this information before it actually came out. That was really big. That’s highlighted under the Alibaba news. You have to dig a little bit, but eight variants of their new large language model are better than almost everything out there and faceted a lot of the stuff that’s out there in certain categories. And if you see that and you throw that into this whole theme of how in the hell are we going to get one, you’re thinking this is slowing down. And it’s clearly not slowing down because now you have Alibaba, you have Oracle as players. Right Now you’re going to have Tencent as players. You got, you know, jdcom, like just other players outside of other countries, this massive spending spree.

Where are we going to get the power from when? Where are we going to get the power from when? Where are we going to get it? I mean, utilities are a regulated industry. They can’t just be like, okay, we’re going to take some of this energy. No, there’s other forms of energy. You wonder why solar companies are going through the roof right now? Because it’s economical. We just recommended a solar company to AI Newsletter.

I think it’s going to quadruple from here. I really do. I think it’s going to be the next Bloom Energy. I mean, when I’m looking at statistics, I hate, I hate, I freaking hate alternative energy. If anyone ever mentions carbon credits, I say just short the shit out of it. I mean, it makes me want to beat the crap out of people. It’s the biggest corrupt industry you’ll ever, ever see. There’s no regulation around it. We’re going to build. Take the carbon credits and build some forest in Africa that you’ll never see Right or fraud, right? I hate alternative energy because I hate money. That needs to be. I hate industries that need to be subsidized to work. You don’t need that anymore. We got rid of the tax credits, right. The US is getting rid of the tax credits and these companies are taking off because it makes sense. Electricity prices are going so high it’s economical for one of the first times ever for solar, for wind, and you’re seeing these companies, seeing these companies.

Not all solar. I’m not talking about residential solar. I’m talking about ones that focus on utility battery storage. That’s within the AI trend and you’re seeing some of these names. These are some of the names we’re going to share tomorrow. Just one of the names I may share with you tomorrow. One of them is in a newsletter. I’m not going to share that one because people pay for our newsletter AI newsletter but I’m going to share another name for you in the solar industry.

There’s only a few of them. There’s a lot of solar companies, lots of them for a solar, solar run, whatever a bunch of them, but there’s only a few that really are targeting that battery storage, that power that’s needed to be able to fuel that grid during peak times because the lights are going to go out. They’re going to go out. You’re going to see it in Texas. I mean 9% demand. No one’s talking about 9% demand and it’s the utility company of powers that’s saying this is demand that’s coming. No one’s even paying attention to it other than the hyperscalers, other than the White House, and this is going to open up so many opportunities for you.

But just this news over the past 24 hours, with Alibaba becoming one of the best. Where did that come from? Holy shit? This is happening every single week that comes out with these new models. They’re forcing them to spend, they’re forcing them to upgrade them and, at the end of the day, no matter who competes and how to pick the winner and the loser and all this shit, it doesn’t matter, because the more that they compete, the more power that’s needed. And that’s where you’re going to make a fortune in this sector, which we’re going to explain tomorrow at 7 pm, which I can’t wait.

It should be fun, man. I’m like pumped up, just just going over the stats and getting everything out and getting some of this stuff out is a lot of fun. Just showing you because I’m really into stuff like this, I’m really into trends, I’m really into data, into analysis, how you benefit and we’ve been benefiting, where our curzio ai newsletter has had a tremendous performance. I love the fact to see some of the things up hundreds of percent, uh, names that are starting to get upgraded, that were up 200. You know it’s. You know it’s really cool to have some of these names in our portfolio when you’re up a ton and just now, people are recognizing them. That’s the reason why we’re having this live event.

What’s the next generation of winners? What’s the next uranium company? Nobody’s talking about. What’s the next solar company? Nobody’s talking about, that’s already receiving orders. What’s the next IPO that’s coming out that you could buy, which I would never tell you to buy an IPO because it’s usually a liquidity event for insiders. But we told you to buy CoreWeave, right, and that was when they were trying to hold the 40 level and NVIDIA’s like we’re going to hold the 40 level. For them it’s $130. Okay, it went down to $100. We said again buy the shit out of this, don’t worry about that stupid short. These guys are great. They address their debt issues. They only take on debt when they have these massive orders and then they pay them off right away, which is a great way to use that debt. They’re not just taking off debt to pay employees. They’re only taking on debt when they have these massive contracts and they sign them in their backlog and they pay them back within a couple of years. That’s what the CEO said actually on TV on CNBC.

There’s lots of ways to play this trend. It’s a lot, just the core. We’ve interviewed with Glenn Hutchins and also Alibaba. That’s in the past 24 hours. What’s going on? And then you throw in CNBC actually having first time. I see this good for them, but NVIDIA and OpenAI’s monumental data center plan has an equally massive problem where to find the power. I mean it’s about time, but again, so many people are behind this trend. About time, but again so many people are behind this trend. There’s so much money to be made because there’s a big disconnect and you don’t see these disconnects often where, uh, even the biggest technology companies in the world have no idea, with all the money and power they have, how we’re going to get that power to fuel ai just in the next six months by 2027 and forget about 2030. But it’s going to be interesting. There’s a lot of money to be made in this trend, so it’s pretty exciting tune in tomorrow don’t miss it.

Tune in tomorrow, don’t miss, it’s gonna be a lot of fun. Uh. So questions or comments. Always feel free to email us especially. You know I don’t know if I’ll be able to get back to you before tomorrow because it’s nuts, because daniel might have to do a podcast before tomorrow. Then I’m gonna put together the whole presentation and everything. It going to be really cool, with graphics and stuff like that, and the presentation is not going to be long. I’m not going to bore the shit out of you with all kinds of statistics. I try to make these things entertaining and fun. It’ll probably be about 15-minute, 20-minute presentation tops, and then we’re going to take questions and by registering at WDWcurzioai you get those questions first, and also those of you who listen to the podcast and stuff, because you know we marketed this to the outside audience and we’re starting to see lots of demand. Because you know our social media accounts are getting much more traffic than they’ve ever gotten before. You know we’re in certain algorithms. We need to trigger that, and you know it’s a lot of fun right now in terms of adding traffic. But you know tomorrow is going to be a really, really cool event, so be sure to tune in at 7 pm and again register at wwwcurzioaicom.

Daniel, did you want to end with anything else, since we have a really busy day tomorrow? So we have the Wall Street Unplugged Premium and also, and then we have that event at 7 pm tomorrow night. No, you know, I don’t. I’ll just say that I’ve been talking this whole podcast. Anyway, I talk when I’m excited. I’m really excited, I’m really excited to share some of these ideas. Even if you register, we’re going to be able to send you ideas and send you a replay. So, even if you’re busy tomorrow, don’t worry about the football game. It’s a horrible football game tomorrow. It’s horrible. It’s like twoennessee or something. There’s two teams that you don’t have any fantasy football players on. But uh, even if you register for that event, uh, you will get you know our three stock picks and also a replay of the event too, probably like the next day or maybe 24 over 24 hours later, stuff seahawks and cardinals.

0:45:07 – Daniel Creech

What is it, seahawks at cardinals? Seahaw, you football fans.

0:45:10 – Frank Curzio

Well, it’s not terrible. I think it’s a little bit worse than that. I mean, the Seahawks actually look what did they win? Like 40, 50, whatever. Who did they beat? They beat. Oh, I forgot who they beat last week. What a terrible team that they beat. And then you have the Cardinals, which, ah, they kind of look crap. They were 2-0. Sit him and listen to the conference for the fantasy football. Sit him. That’s it. I don’t even know who the quarterback is for the Seahawks. But questions, comments, feel free to email me at frankcurzioresearchcom. Daniel. What’s your email, daniel, at curzioresearchcom? Long day tomorrow we’re going to see a Wall Street Unplugged premium and then we’ll see you at the live event at 7 pm. Looking to see.