Bill Gurley says the GPU-allocation-vs-cloud-revenue chart is his favorite because it exposes competitive strategy differences, notably Amazon under-indexing on GPUs and Oracle's surprising comeback. ✦ AI generated
Bill Gurley · BG2 Pod · 2025-06-20 · original ↗
starts at this moment · 23:56
“tell tell us why you guys put this together and what are your big takeaways?”
this might be my favorite slide because it shows like the competitive dynamics at work and whose strategy will win out. You know, I mean, I look at this and one obvious takeaway is that Amazon has half the share of GPUs than their share of AWS... it shows the reinvention of Oracle, right? I mean, left for dead in the 2000s, left for dead in the SAS era, left for dead in the AI era, now coming back.
verbatim transcript · starts at 23:56
23:56why you guys put this together and what are your big takeaways? I mean, for me as a um I I'll go ahead and then you go as a as an an as an analyzer of companies, this might be my favorite slide because it shows like the competitive dynamics at work and whose strategy will win out. You know, I mean, I look at this and and one obvious
24:18takeaway is that Amazon has half the share of GPUs than their share of AWS. So, that could mean one of two things. either AWS is behind in AI, that could be one, or they're pursuing a different hardware strategy than its uh than its competitor, which Andy spoke specifically about. So that could be or a combination thereof, right? So that's one. And number two, it shows the reinvention of Oracle, right? I mean,
24:45left for dead in the left for dead in the 2000s, left for dead in the SAS era, left for dead in the AI era, now coming back. And then also I give Cory of a tremendous amount of credit of just entering the market as a pure play. Had difficulty raising capitals. None of us ever believed there's no IP. You're just buying GPUs and reselling them just by
25:05being in market and being focused, right? Started to build that relationship with Nvidia and now is punching way above its weight. So it's a by the way the third theory could just be that Nvidia would prefer not to have a dominant customer like they wouldn't want this. be the customer though it hasn't seemed to impacted Microsoft and Google. So yes, do you want to add anything? Yeah, I mean listen, I would
25:30say the one thing on that chart is damn hard to get the numbers right. So there we have to explain the viewers like we could be off by, you know, five or 6% up or down. But I think where we're not off is the concept that some players are getting more GPU chips than others. And so then the question is are Nvidia GPUs a prediction of future cloud revenues
25:54and I think the answer is like and uh we haven't even included Stargate which is going to start coming up here right what if what if anthropic also becomes its own hyperscaler you could have a world with more like a dozen hyperscalers than like the two or three that we the overseas sovereign then you're going to have the sovereigns for sure uh So you're going to have some telecom