The AI trade everyone is getting wrong

In March 2000, Cisco was the most valuable company on earth.

Its routers and switches carried the internet's traffic. It was, by every measure, the infrastructure play of the decade.

I'm telling you this because there's a trade developing right now… that constantly gets compared to the dot-com infrastructure boom... and the comparison is both right and wrong at the same time.

The trade is AI infrastructure.

And at Investormania this month… I'm going to walk through exactly what it is… and where the real money is likely to be made.

A normal data centre (the kind that hosts your email and Netflix account) uses roughly 10-15 megawatts of power. About enough to run a small town.

An AI-focused data centre? 100 megawatts or more. Ten times as much.

Jensen Huang calls these data centres AI factories.

It's a useful frame becaue like a factory, the data centers need raw materials (data)… machinery to process them (GPU chips)… plus power to run everything.

Like I said in yesterday’s email… most investors have piled into the machinery… the Nvidias and AMDs of the world.

And if you did so… you’ve likely had an extraordinary run.

But here's what I want to talk about at the event...

The bottleneck isn't the chips. It's the electricity.

Because by 2027, Anthropic estimates training a single frontier AI model will require 5 gigawatts… or roughly twice the peak electricity demand of New York City.

And former Google CEO Eric Schmidt testified to Congress that data centres will need 67 additional gigawatts by 2030.

This is the boring part of the AI boom.

And that's precisely why I think it's worth looking at seriously.

The California Gold Rush made millionaires out of men who never panned an ounce of gold in their lives…

They sold pickaxes… denim jeans and shovels.

Many miners went bust but almost all the merchants went home rich.

The AI equivalent of the shovel seller right now is not necessarily who you think it is.

At Investormania on May 14th-16th in Tampa, I'm spending a full session on the AI infrastructure trade… so if you'd like to grab your virtual ticket… you can do so here.

Oliver

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P.S. The last Investormania sold out. If you're thinking about it, don't think too long.