Letâs pause the crypto talk. If you want to know what's going on there, check out this exclusive PRO video that Kyle recorded yesterday, explaining why we crashed to $80k and whats coming next.
Today is all about AI.
Why? Because these two (crypto and AI) are driving some of the biggest shifts in the world right now.
We talk a lot about crypto and for good reason. But AI is just as important.
Focusing only on crypto and ignoring AI? That would be a big miss.
And the truth is, for many of us, AI is already woven into our daily lives.
Chances are, youâve already seen AI in action yourself which makes it easy to understand just how big this is going to get.
But you might also hear that weâre in an AI bubble.
- But what does that really mean?
- Are people just overhyping the technology?
- Are companies spending too much money chasing the AI future?
- Or are AI stocks simply overpriced?
We donât think any of that is true and weâll show you why.
The first and most obvious proof? The chart below shows ChatGPTâs weekly active users (WAU) in millions.
There are two key takeaways:
- The trend is up only and we donât see it slowing down anytime soon.
- ChatGPT now has 800 million weekly users - thatâs more than 10% of the worldâs adult population.
Unless youâre an AI doomer, itâs hard to argue that AI adoption will stop here.
Itâs not just that more people are using it - the tech itself is getting better too. Fast.
Sure, many companies are still holding back. Internal rules, security worries, and fear of data leaks are slowing things down in some places.
But even with all that hesitation, the headlines are already starting to look like this. đ
And this is just the beginning - we expect to see a lot more headlines like that.
Letâs face it: AI is already outperforming humans in most tasks. Itâs only a matter of time before it starts competing with senior-level professionals too.
But it wonât stop there.
AI wonât just live in our laptops and phones - itâll power humanoid robots, autonomous vehicles, drones, and countless other machines that will reshape our world.
If we look back, itâs clear that the companies that embraced new technologies (many of them listed on the Nasdaq) have done incredibly well over the past 22 years.
Thereâs no better way to track the companies that embrace new technology than by looking at the Nasdaq.
Itâs a perfect example of whatâs called a secular trend - a long-term shift that plays out over years, sometimes decades.
And we believe AI is becoming a major part of that trend. This isnât just wishful thinking - itâs exactly how the biggest tech companies see it too. Thatâs why theyâre all investing heavily in AI.
But letâs not get ahead of ourselves just yet. We hope this gave you a solid context and set the stage for this report.
Hereâs what you can expect in todayâs report:
- Why companies are pouring so much money into AI
- Where all that money is coming from
- A look at the full AI supply chain
- The âpicks and shovelsâ powering the AI boom
- And most importantly, where we see the biggest opportunities ahead
AI and Crypto are the lifetime opportunities of our generation - take them seriously, and donât mess them up.
Tune out the noise and take the time to form your own view on where AI is going and whether you want to be part of it or not.
And hey, if you decide itâs not for you, thatâs totally fine.
But weâre all in.
Especially as we believe AI and blockchains are starting to converge. Thatâs why weâre diving into this AI piece - to build a solid understanding of the tech and where itâs headed.
So letâs get into it.
WHO IS PAYING FOR THIS
We have to start with this one key question, because it tells us whether AI is a true long-term trend, like we believe, or just another overhyped story with no lasting value.
To get a clear answer, weâll look at it from two angles.
First, from the user side: are people actually paying for this?
Itâs easy to show impressive user growth, but without real monetization, it doesnât mean much.
Weâve seen this play out in crypto way too often. A projectâs TVL shoots up, everyone gets excited, and it looks like the next big thing.
But then you realize itâs running on massive incentives or not charging any fees. Sound familiar? Hopefully weâve moved past that phase. đ€
Now back to AI.
Letâs focus on OpenAI, the company behind ChatGPT, and take a look at whether theyâre actually making money.
Back in December 2024, OpenAIâs annual revenue was sitting at around $5.5 billion.
Fast forward to June this year, and they announced that their annualized revenue run rate had already passed $10 billion and theyâre on track to comfortably hit their 2025 target of $12.7 billion.
Thatâs some serious growth, and a clear sign that people arenât just using AI, but theyâre paying for it.
Some analysts are already putting OpenAI in the same conversation as the fastest-growing companies out there - suggesting it could become the quickest to go from $10 billion to $100 billion in revenue.
This chart makes a bold call: OpenAI could hit $100 billion in revenue within just 3 years.
To put that into perspective, the fastest company to ever reach that level was Meta - and it took them 7 years to go from $10 billion to $100 billion.
So, can OpenAI really 10x its revenue that fast? Itâs a big ask, but honestly, not impossible.
And the rumors keep heating up. Apparently, OpenAI is preparing for a massive IPO at a jaw-dropping $1 trillion valuation.
Think about it: just seven years ago, Apple became the worldâs first $1 trillion company. Now weâre talking about a private company potentially going public at the same number? Thatâs huge.
Itâs also a strong sign that this AI boom is more than just hype. It feels like the natural next step in how tech and the world is evolving.
AI clearly has a business model that works. People are already paying for it, and the path to making money is real and active.
Sure, going public at a $1T valuation might seem toppy. Some might even say itâs a sign weâre nearing the peak of the AI cycle - perfect fuel for the AI doomers.
But ask yourself this: would you really bet against them?
đ If OpenAI keeps growing the way it is today and continues to lead with the best-performing models, that trillion-dollar tag might not be so wild after all.
That said, weâre still just looking at revenue and growth here. Itâs only one piece of the puzzle.
Thereâs a bigger picture to consider.
The other side is costs - things like model training, inference, or heavy capital expenses.
And when you factor those in, chances are that even with these eye-catching revenue numbers and fast growth, OpenAI is still running at a loss. đ±
Kind of makes that $1T valuation talk feel a bit different now, doesnât it?
But that brings us to the second angle of the question: whoâs actually footing the bill for all of this?
AI hyperscalers.
Those are large tech companies (Microsoft, Amazon, Google, Meta) that build and operate massive computing infrastructure to train and run AI models at scale.
You might be wondering, why are they doing this if the business isnât even profitable yet?
Because they see long-term strategic value that far outweighs any short-term profits.
- They want to lock in customers early, so when AI becomes more mature and profitable, everyone is already using their products.
- These tech giants are willing to offer AI tools even at a loss because the data they collect helps them improve faster, giving them a long-term edge.
- Theyâre not just selling AI models, theyâre trying to make their platforms essential for others building AI products. This strengthens their ecosystems and user retention.
- AI models require huge compute power, and whoever controls that infrastructure will control the âpicks and shovelsâ of the AI economy.
Once you understand these dynamics, the big bets (investments) on AI start to make a lot more sense.
And here's another key point: these tech giants are already making huge profits and sitting on piles of cash, so they can afford to invest heavily in AI without breaking a sweat.
They're funding the future with money theyâre making right now.
Hereâs a quick look at how much theyâre spending on infrastructure (capex) compared to how much money theyâre bringing in.
You can see their spending on infrastructure is picking up fast lately, but still around 50-60% of their free cashflow.
For the big AI players, capex usually includes things like:
- Building or upgrading massive data centers
- Buying powerful chips like GPUs
- Setting up cooling systems, power supply, and other essentials
- Investing in software, tools, or property theyâll use for the long haul
By now, youâve probably got a clear picture of why the biggest tech companies are going all-in on AI and why they're pouring so much money into it.
Still think weâre in a bubble? Or maybe a better way to ask it: Are you bullish on any company not investing in AI right now?
Itâs really the same question, just from a different angle. Like Kyle pointed out in the previous report:
Those are bold claims, and weâd sign off on all of them. Would you too?
With that, letâs move to the next sectionâŠ
Uh, Oh⊠đ§ The rest of this report is exclusive to Crypto PRO or PRO All Access members!
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WHATâS LEFT INSIDE? đ
- How the CEO of Nvidia sees this whole revolution
- Why we will run out of energy soon
- Is the GPU market overheated?
- Could data centers be the best play?
- What is one stock that provides exposure to the whole stack?
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