CNBC Television
Prince: We need the next generation to teach old guys like me how to use AI
11/6/2025, 12:10:51 PM
Economic Summary
- AI represents a platform shift that will change how information is consumed and create broad economic opportunities for infrastructure and tooling providers (e.g., Cloudflare - NET).
- Although AI is real and valuable, the speaker estimates most AI spending is wasted (roughly 99%), implying concentrated winners and high investment risk.
- Multicloud is becoming the norm as customers avoid single-provider lock-in; Cloudflare's Oracle (ORCL) deal positions it as a fabric tying multiple clouds together, improving reliability and security.
- Hiring and talent strategy matter: Cloudflare plans to hire 1,111 interns in 2026 to capture next-generation AI skills, reflecting firms' need to invest in human capital alongside technology.
Bullish
- Cloudflare as 'picks and shovels' benefits whoever wins in AI.
- Large customer penetration: ~80% of leading AI companies are Cloudflare customers.
- Oracle partnership expands Cloudflare's native reach across enterprise cloud customers.
- AI is a platform shift similar to mobile/social, creating broad new demand for infrastructure.
Bearish
- Extremely high valuation (about 220x forward earnings) risks being a bubble.
- Most AI spending may be wasted — speaker estimates 99% of AI spend is 'lit on fire'.
- Uncertainty over which AI companies will win means many investments could fail.
Bullish tickers
NETORCLAAPLGOOG
Bearish tickers
NETPLTR
NET
Bullish
Positioned as 'picks and shovels' for AI with ~80% of leading AI companies as customers and large hiring plans.
Bearish
High valuation risk cited (about 220x forward earnings) and concern that most AI spending is wasted.
ORCL
Bullish
Native availability of Cloudflare services to Oracle customers supports multicloud adoption and extends enterprise reach.
AAPL
Bullish
Potential integration of Google AI into Siri seen as part of the broader AI platform shift improving user experiences.
GOOG
Bullish
Alphabet's AI capabilities being embedded into other platforms (e.g., Siri) underscores demand for AI models and services.
PLTR
Bearish
Referenced in the context of recent earnings and valuation debates that frame concerns about lofty multiples.
People mentioned
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