Seven days and $80 billion

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

Microsoft to spend 64% of 2024
Will Nvidia top $340?
The golden age of American AI

If that’s enough to get the cash splashing, read on…

AI Collision 💥

We’re back for 2025 with the rambunctious enthusiasm we had in 2023 and 2024. We’re in no doubt 2025 is going to be as big a year for AI that we saw in 2024, if not, even bigger!

How can we be so sure, so enthusiastic about what’s coming?

Well as they say in the market, just follow the money.

We’re already seeing commitments in the tens of billions towards more critical infrastructure aimed squarely at the AI market.

In fact, Microsoft, one of the biggest splashers of cash for AI infrastructure, has said that in 2025 it will spend $80 billion on the development of data centres to train AI models.

Just seven days into 2025 and $80 billion is already on the table!

This comes as OpenAI is saying it’s confident it knows how to build artificial general intelligence (AGI) and are now working towards superintelligence.

Maybe this is the year where we find out if AI is going to kill us all Terminator style, or work with us to create a better humanity!

That said, I expect this year we’ll get humanoid robots for commercial and consumer purchase, mind-blowing jumps in the capability of AI and the ongoing proliferation of AI agents in commerce and global trade.

For good measure, I also expect we’ll see the continued convergence and intersection of cryptocurrency with AI as bitcoin global adoption increases, TradFi gets deeper into DeFi and in his first 100 days Trump goes full “degen” to make the US the bitcoin and crypto capital of the world.

Now that is a little off track from AI, but my view is the two converge and become (once again) the two best performing areas of investment in 2025.

I say that because we know of all major assets in 2024, the leaders were stocks like MicroStrategy (359%), Palantir (340%), Nvidia (171%), Broadcom (138%) and, of course, assets like bitcoin (122%).

These are all either AI or bitcoin related. So it would make sense that if you’re aiming to make a killing in the market in 2025 that you check out my advice and make some smart moves when it comes to both AI and bitcoin – you can see more about that here.

And with Microsoft already backing up the truck on its data centres, it’s only a matter of time until the other big players in AI – Google, Meta, Tesla and Amazon – all follow suit.

To give you some idea of just how big and crazy this could get in 2025, estimates are that in 2024, these tech giants spent around $125 billion on investing in and running AI data centres.

With an $80 billion commitment, Microsoft already meets 64% of that total. 2025 is going to be a big one, so get ready, get investing and get your capital targeted appropriately.

AI gone wild 🤪

Do you remember August 2024? That blip on the radar that saw trillions in wealth ripped out of the stock market thanks to the “Japanese carry trade”?

We covered it at the time in the most suitable way…with a bunch of memes.

But it’s what that blip created that is the focus here. Because that may have been a turning point, a last chance, to get one of the world’s best stocks at a truly discounted price.

Here’s what I wrote on 6 August,

I’ve just given a roll call of AI related stocks that look attractively priced now, I liked them a month ago, I like them more now. And again, if you’ve got the risk appetite for volatility like it’s 2008 or 2020 and you’ve got the risk capital to deploy, I don’t think you want to sit on your hands here, I think it’s a buyer’s market again, and the time to buy is upon us.

Two days later in a piece titled, Time to buy Nvidia? Is this as cheap as it gets? I suggested that Nvidia at sub-$100 might be a thing of the past.

This was off the back of an extraordinary run for Nvidia in 2024, where it was trading at $615 in mid-January 2024… then went through a 10-for-1 stock split… then traded well over $100 through 2024 ($1,000 pre-2024-split) and then back under $100 in August 2024 as Japan led to market shenanigans.

Today Nvidia is now at $145 ($1,450 pre-2024-split) and the question is, will Nvidia continue at this pace? In January 2026 will we look at $145 like we looked at $61.50 (split adjusted) in January 2024?

The question is, will Nvidia top $340 in 2025?

Right now, it’s looking like it’s still in huge demand and it’s still supply issues that can’t keep up. In fact, the supply issues are becoming such a problem that Nvidia is already looking beyond Taiwan Semiconductor (TSMC) to manufacture its chips and is notably looking to Samsung as an alternative as chips get down to the 2nm level.

The thing is, Samsung isn’t quite at the level as TSMC, and the 2nm process is only going into testing this year. But it’s a sign that if the parts of Nvidia’s supply chain can’t keep up, they better ship out.

And for us, this is a strongly bullish case for continued Nvidia dominance in 2025.

Boomers & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

man in black suit jacket and black pants figurine

Boom 📈

iRobot (NASDAQ:IRBT) up 24%
Gorilla Technology (NASDAQ:GRRR) up 24%
Vertiv (NYSE:VRT) up 9%

Bust 📉

Amesite (NASDAQ:AMST) down 6%
Tesla (NASDAQ:TSLA) down 4%
Broadcom (NASDAQ:AVGO) down 3%

From the hive mind 🧠

It’s the end of the line for proud Black queer momma. This AI-created user profile found on Facebook ad Instagram is one of many AI-created profiles Meta unleashed very quietly in 2023. It’s slowly killed them off, but a few remained in the wild, like the one above. But with AI agents increasingly becoming a part of everyday life, what (or who) is AI and not is becoming increasingly hard to distinguish.
This home robot might be good at cleaning and picking up rubbish (as the company suggests) but what happens when in the middle of the night you feel a tickle on your foot… and it’s not your partner lying beside you!
America wants to be great again. Maybe it will be. Maybe embracing bitcoin is part of that. Maybe embracing AI to create the Golden Age of American AI is another.