Erik believes NVIDIA and, to a lesser extent, neoclouds capture most of the scarcity rent from constrained compute capacity.

“Right, like right now I think, I think your, your capacity is constrained and, and that leads to sort of, you know, in economic terms there's a scarcity rent, right? Like who captured a scarcity rent?”

“I, I think that primarily goes to two places, mostly NVIDIA, but uh, of course, but also to some extent Neoclouds. Like Neoclouds and in general like, you know, anyone owning capacity has better economics.”

“Like that's undeniably true today with capacity being constrained. Long term, you know, in the very long run, I don't think that's necessarily entirely true, right?”