What happens when every software company needs to be a hardware company first? And how are leading VC firms potentially predicting that the 2000s will be repeating themselves?

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SHOW NOTES:

• AI’s $200B Question (Sequoia)
• 5-years-and-15-billion-later-a-fiber-optic-venture-fails.html">5 years and $15B later, a fiber venture fails (Global Crossing)
• Dot com bubble
• The history of Switch Data Centers
• Interest rates over the last 30 years
• The Cost of Cloud, A Trillion Dollar Paradox (a16z)
• vs-cloud.html">VCs vs the Cloud (Eps.656)

BACK IN THE DOT COM DAYS, WE ASSUMED THAT EVERYTHING WOULD BE INTERNET

• Let's remember how we transitioned from the late 1990s to the early 2000s
• VCs used to have a $50M "hardware tax" on investments
• Cloud and Low Interest Rates changed everything
• New Technology with Simple UI + Infrastructure Buildouts + Unknown Business Models

NOW WE ASSUME THAT EVERYTHING WILL BE AI (and GPUs)

• Interest rates have come back up to 2001 levels
• VCs are back to paying the "hardware tax", and aren't happy
• New Technology with Simple UI + Infrastructure Buildouts + Unknown Business Models
• Let's see if history repeats itself.

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