TESL - Artificial Intelligence: Our Evolving Thoughts On Why AI
2025-01-16 07:30:00 ET
Summary
- AI has driven triple-digit returns and trillions in market cap for companies like Alphabet, Apple, Meta Platforms, and Taiwan Semiconductor Manufacturing.
- Despite skepticism, AI's gradual integration into everyday tech has been ongoing, with companies like Alphabet and Meta investing heavily in AI-related R&D and capex.
- Alphabet and Meta have leveraged AI for years, using proprietary hardware and software solutions to handle massive user data, generating substantial cash flows.
- The question "Why AI now?" is answered by recognizing AI's long-standing presence and incremental advancements in tech giants' operations and profitability.
The following segment was excerpted from this fund letter.