Locator: 49353AI.
Tech / AI / investing: if one is having difficulty understanding how CoreWeave fits into the "AI data center value chain," link here.
How did AWS become the leader in "cloud" or "compute"? Link here. When it comes to "cloud" and "compute" right now, it is clearly the fact that Jeff Bezos and Jensen Huang were in the right place at the right time, but so were others, but Jeff Bezos and Jensen Huang saw well before anyone else how they had tapped into something that would be beyond anyone's imagination.
In neither case, especially with regard to Jeff Bezos, was it initially about making money. For Jensen Huang it was an existential issue (which is a bigger issue than money) and for Jeff Bezos it was recognizing that while he was "solving" his own problems, he could use the same "business model" and "rent it out to others." Which, by the way, whenever I see the word "rent" in all of this, I think immediately of Larry Ellison and Oracle.
There's a reason there are a handful of companies that make up the Mag 7. The moats are just too big: money, expertise, human resources.
Harvard: Jim Cramer was at Harvard University today and took questions from some of the students. I was dismayed how "mundane" (for lack of a better word) or "lame" their questions were; I expected more.
The first question was the same question that everyone on CNBC is asking with regard to AI. Is this a bubble? What happens if this (AI) doesn't pan out?
This is like:
- someone asking in 1760, what if this "steam power" thing doesn't work out?
- someone asking Cornelius Vanderbilt in 1853, what if this New York Central Railroad thing doesn't work out?
- someone asking William H Seward in 1867 what if this Alaska purchase thing doesn't work out?
- someone asking JFK in 1961, what if this space (program) thing doesn't work out?
It gets tedious. What if this AI thing doesn't work out?
Jensen Huang had it exactly right today. He said the Chinese, in the end, are going to beat the US at this "AI thing" because the Chinese, he said, are incredibly optimistic; the US is pessimistic.
Energy is going to be the choke point in both countries and China has already said: it will build as many coal plants as needed until their nuclear power plants come on line -- and they're building both -- coal and nuclear -- as fast as they can. Meanwhile, .... well, you get the picture.
Even Saudi Arabia has it figure out. By the way, I think that every OPEC country will take the Saudi route developing their own AI program, starting with ADNOC and Qatar.
Nuclear: link here -- breaking now --
Meanwhile, in the US, we can't get a simple pipeline built without the environmentalists shutting it down.
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Back to the Bakken
WTI: $59.65.
Active rigs: 33.
Five new permits, #24256 - #24260, inclusive:
- Operators: Formentera Operations (4); Phoenix Operating
- Fields: Larson (Burke County); Zahl (Williams)
- Comments:
- Formentera Operations has permits for four Piper wells, SWSE 18-162-94,
- to be sited 475 FSL and 2231 / 2336 FEL;
- Phoenix Operating has a permit for an Haefele well, NWSW 34-159-101,
- to be sited 2167 FSL and 475 FWL.
Six permits renewed:
- CLR (4): four Durham permits, lot 4, section 2-151-99; North Tobacco Garden, McKenzie County; and,
- Hunt Oil (2): two Halliday permits, lot 1, section 30-146-92, Werner oil field, Dunn County.
One producing well (a DUC) was reported as completed:
- 41556, 1,984, CLR, Kanyer 5-15H, Williams County.
