Ep 110 - Hyperscaler CapEx is going nuclear (Charles Fitzgerald)

The Big Three hyperscalers each hit an all-time high in CapEx spending in 2024, collectively investing almost $200 billion. For this episode, I speak with Charles Fitzgerald, managing director at Platformonomics, whose annual "Follow the CAPEX" report tracks the cloud providers’ spending. He pulls back the curtain on what’s driving investments, how AI and nuclear power are coming into play, and whether telcos have what it takes to sell AI workload capacity at the edge. Listen now to hear:What happened with hyperscaler CapEx spending in 2024 [02:49];Insights into the Stargate project, which aims to boost AI infrastructure and know-how in the United States [7:17];How the cloud providers are addressing AI’s energy needs, and the role nuclear power is poised to play [11:06]; andWhy telcos may want to think twice before betting on selling AI workload capacity at the edge [14:25].Links and ResourcesRead Charles Fitzgerald's 2024 retrospective on public cloud CAPEX spending and check out his Cloud Reactor Tracker.Take a look at Charles' 2022 paper calling on big tech companies to champion nuclear energy.Learn more about the hyperscalers’ nuclear energy plans.REad about telcos’ aspirations to make money by selling AI infrastructure at the edge:Verizon execs hint at making money from AI infrastructureAT&T and Verizon are pivoting into the landlord biz for AIThis is Charles’ third time as a guest on Telco in 20. He’s working his way to our 5-Timers Club! Check out the first Saturday Night Live 5-Timers club inductee, Tom Hanks, who was ushered in by Paul Simon, Steve Martin, and other special guests.Watch this episode on our YouTube channel.You can find the episode transcript here.Wanna talk AI and public cloud? Telco execs, set up a meeting with our team to learn how to tap the immense business value it can bring.Follow DRHave an idea for a Telco in 20 podcast guest or topic? Send it in!Want to sponsor a podcast? Let us knowFollow Telco in 20 on X @TelcoIn20Follow DR on X @TelcoDRThe Telco in 20 podcast is ranked in the top 5% of all podcasts globally by Listen Notes! 🎉 We've also won a 2024 MarComm Award and Hermes Award, and are recognized as a TeckNexus Top 12 Telco and Tech Podcast, Forrester Top 100 Channel Podcast and Feedspot Top 10 Telecom Podcast.If you enjoy the podcast, would you leave us a review? It takes you seconds to do in your app and it really makes a difference in helping to convince hard-to-get guests. And I love reading your feedback and reviews!This week’s guestCharles Fitzgerald is a Seattle-based angel investor, with a focus on developer platforms and infrastructure. Previously, he spent 20+ years working on platform businesses at Microsoft and VMware. He can see the cloud from his house.Podcast CreditsExecutive Producer and Host: Danielle Rios, TelcoDRSenior Producer: Lindsay Grubb, TillCo MediaSenior Editor/Brand Manager: Alisa Jenkins, Springboard MarketingAudio Editor: Andrew CondellSupervising Producer: Amanda AveryAssociate Producer: Kriselda DionisioMusic: Dyami Wilson Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.