Pichai says Google capacity-constrained by Argon launch
The post cites Pichai saying Google is capacity-constrained amid the Argon model launch, using it to push back on AI bubble talk.
AI Bubble Bois vs Reality…… Reality: Elon $500B-$1T ARR at $spcx next year (per earnings call this week) Jassey (Amazon CEO) we are sold out at AWS in 2027 and a lot of 2028 (per podcast this week) Nikesh Arora (Palo Alto CEO) compute is constrained, I’m a taker of terms not a setter of terms (per podcast today) Sundar Pichai (Google CEO) we have been capacity constrained as they work through new model (Argon) launch (per podcast this week) Jensen (Nvidia CEO) sold out through mid 2028 “Bubble bois”: Average Private Wealth idiot on CNBC…. “Rates up 40bps over past 4 months AI bubble going to blow”….….. Reality: Meanwhile there’s like no financial leverage from the top companies …… Net debt / EBITDA — Nasdaq-100 top names (TTM, reported) NVDA -0.4x (net cash) AAPL -0.3x (net cash) GOOGL -0.3x (net cash) TSLA -2.5x (net cash) META -0.1x (net cash) MSFT 0.0x AMZN 0.2x (~0.8x incl. leases) AVGO 1.4x ORCL 3.4x ← the outlier Nasdaq-100 aggregate: ~0.3x reported 0.6–0.8x lease/SPV-adjusted S&P 500 ex-financials: ~1.5–2.0x ….the dummies can cause a lot of vol, hang in there. Have a great weekend!