Q2 2023 / Strategy Update

A central theme of last quarter’s letter was how generative artificial intelligence (AI) could drive the next productivity boom. Goldman Sachs says generative AI could raise labor productivity growth by 1.5% over 10 years while increasing annual global GDP by 7+%. In dollar terms, this means AI could create $7 trillion of new economic value over the next decade.  

$7 trillion is bigger than the third largest economy in the world, which is currently Japan. The earnings implications for this level of value—over such a short span of time—is nothing short of astounding. So naturally our next question was, which companies are positioned to profit most in the immediate term from the proliferation of this revolutionary new technology?

To find out, we got on an airplane and went to Silicon Valley.