It is an interesting time to be an AI optimist and even more perplexing to be an AI bull. We are witnessing the diffusion and democratization of intelligence at an unprecedented rate. It will all but certainly transform the world and power economies for decades. If you have spent any time using the technology it is instantly evident how powerful and game changing it is. However, markets can be humbling. Right now we are in a tug-of-war between exponential growth and capital intensity. The Mag 7 is spending at a breakneck pace to position for long term viability and reduce existential risk to their business. And even with record revenue growth and great guidance, the market is calling its bluff. So what to believe when sentiment turns like it has in recent weeks? I believe we may see more downward pressure, but this is dislocation between the strength of the AI wave and the realities of the free cash flow crunch. The comparisons with the internet boom are largely a false flag. The adoption curve and demand for intelligence is nearly infinite and the growth of companies like Anthropic prove the demand continues to gain strength. This will continue to accelerate. The big question to ask is whether the thesis has changed and whether fundamentals have changed. In this case it is clearly a change in capital market structure and the impact is in the near term risk capital is nervous. I also think this market has presented more opportunity for long term investors and growth. Many great companies have lost a ton of near term value while fundamentals have improved. Hard to think that long-term minded investors won't do well buying strong performing names that are benefitting from the AI revolution. Next few months will be very interesting. I remain optimistic and bullish over the long term, but definitely believe sentiment has shifted bearish for now. Happy Sunday, Y'all.