Big Digital Energy

0:00 What's up, boys? Welcome back, Kurt. It's been forever. Dude, it's good to see you guys, man. I mean, you're across the pond in London. Mark, who knows? Probably in Memphis, somewhere in

0:10 barbecue. Home of what I learned and I think is true is currently the world's largest supercomputer, the Colossus XAI facility. With, at peak, I guess peak operation is 300 megawatts I also

0:27 learned that in that 750, 000 square foot, what do you call it? Footprint, form factor? Footprint, we'll see you that. They're talking about expanding to a billion chips. Here's my question,

0:42 Mark. Does Tennessee have state income tax, yes or no?

0:49 No. Okay, all right. I'm sure they did their homework. Yeah, they did their homework and they're pulling a tremendous amount of water out of, I forget the name of the aquifer here. They're

0:59 right next to Mississippi River. And apparently they've been competitors, surveillance drones, taking a look at what they're doing, but it's pretty cool. It started back in August, 122 days,

1:13 and we've talked about it before, but 122 days from, I guess, shoveled to startup, which is astounding. Yeah, that's a neat, that is. Kirk, you look really good. What are you doing these

1:25 days? I started

1:28 a stupid diet called carnivore. It's not stupid, but it's a little radical and I just wanted to test it. Two months, almost two months in. Feels good, basically I'm eating only meat.

1:42 Eggs, bacon, fat, protein, mainly steaks, mainly beef and some pork. It's awesome, man. I mean, I'm enjoying it, so. Well, you know, they're running They're running a study right now of 5,

1:57 000 people.

2:01 that are in really good shape, have low body fat, work out all the time, but have really high cholesterol 'cause they've all been on the carnivore diets. Yeah. And you know, this is gonna be the

2:09 first study that truly looks at does cholesterol matter for heart disease because you can make a case that, you yeah had high cholesterol, but all the people in the studies were all so fat, you

2:22 know, and they were out of shape And so this is truly gonna isolate cholesterol and those type measurements on cardiovascular disease to see what shakes out. Well, the guy who coined the term

2:37 carnivore diet, Dr. Sean Baker, we should probably link to him, but he's a Longhorn, I mean, look him, but he was a surgeon and he figured this diet out. And he has a couple of world records

2:50 since he's been, he's been carnivore for what? 15 years maybe and that's there's a few areas that you have to jump over sort of crevasses that, in your mind, you have to be like, oh my gosh. One

3:06 is the cholesterol argument. In regards to like just overall health, like I'm working out, I don't, I feel as strong as I ever have. And going only me, I've lost most of my visceral fat. And

3:21 that's where I gain weight is around my stomach. And that's the first fat that kind of just goes out the window. Which is awesome. But there's a few areas that, you know, like you have high A1C,

3:35 high cholesterol, things that you have to take on faith. Is this gonna be okay or not? Now we've all been taught that this will kill you, but I'm following medical doctors that have been doing

3:48 this for over a decade and they're showing results. So I guess two months in, I'm gonna be, I'm okay with it And I'm enjoying eating free can. sad he meets all the time. Nothing like a

4:02 porterhouse to make you feel good about your fitness. Nothing better than a porterhouse. Exactly. Well, one report I've got that's pretty interesting from across the pond. A buddy of mine named

4:15 Dave Rhodes runs Sky News, and Sky News has been around almost 40 years. Yeah. I think it was the first 24 hour news channel in the

4:27 UK It's now owned by Comcast. I think it was originally started by Murdoch. Yeah, it was. Anyway, we went

4:40 and we go way back. My grandfather delivered his father. Our fathers went to rice together. Me and Dave went to rice together. His brother Ben Rhodes, who was Obama's right hand man, went to

4:50 rice with us. And

4:52 Dave was the youngest president of a major network news. President and CBS News for a while before moving across the pond to take the job at Sky News. But anyway, it was a fascinating discussion,

5:06 and all of this is in a Financial Times article, so I'm not disclosing any trade secrets, although some were said at lunch the other day. Pretty fascinating talking about how they're making the

5:19 transformation into things like podcast and long format and are going to move to charge for that, and TV is going to be the byproduct as opposed to the approach to date has been TV is the focus and

5:35 will dump the extra stuff on YouTube. So it was kind of wild having a discussion about the changing media that we're kind of like right in the middle of, you know, you know, on the head, I mean,

5:47 I think one of the things as I'm trying to build a new golf media empire, you know, slow and hard. The question is, is YouTube gonna be the biggest platform in the world? And we're sort of in

6:02 this interesting dynamic where linear and cable is still dominating the advertising business. It's still holding off. Now this year, streaming is supposed to overtake that, but advertisers are

6:18 reluctant to move all in on streaming But streaming supposedly is the future, but our next generation millennials and then Gen Z, they are actually moving, they will move off of YouTube and off of

6:33 social platforms

6:36 to watch really good content.

6:39 And that's still proven. So I think the reality and the fight that was back in my early days of tech when in the '90s, The big question was, who's going to win? Is it the tech platforms or is it

6:54 going to be - There goes Chuck. Is it the tech platforms or is it gonna be content? And I think both of one. I mean, tech wins, of course, because you've got Google and these guys, Apple,

7:07 Apple struggling to some degree. But you've got the Googles that are in the Netflixes that are just dominating all the television, executive conferences, et cetera. But content still came. And

7:19 that's sort of an East Coast philosophy, New York philosophy, but content still went. So if you have great content, even Mr. Beast, the number one YouTuber in the world, will tell you his

7:28 advice is make great fucking videos. I don't care anything else, make fucking great content. And that's content still went. So if you have good content, people can talk. I mean, how many

7:44 podcasts across the spectrum do you listen to where there's a video companion that I don't have to go to YouTube for great content? I've got video capability on whatever platform it is. And so

7:57 absolutely. I've just, just a historical aside, I was a, as a Skynet or whatever the, wasn't Skynet. Sky News

8:08 in satellite news or 30 years ago, it was dominant in Asia, which was great. A lot of Australian sitcoms and soap operas I always heard you're in huge in Asia, big in Japan. Yeah, no, it was

8:25 while they're talking about how content's king, no doubt, but the rules for content are thrown out the door now. I mean, the thought was you had to create 45 second bits for people to watch now on

8:40 TV. And what you're finding out is that people go watch, Rogan talk to Trump for three hours.

8:49 Yeah. And actually consume it. And so it was a fascinating launch to be a part of. So Mark, why don't you kick us off? What's going on in the energy world? Well, we'll start with the alpha.

9:01 This was announced last week. Diamondback is acquiring certain assets out of Double Eagle. What is it? Midco 4, private equity maven, Chuck. Yeah, they were uncapped back this time around Along

9:18 with others, 41 billion, 3 billion in cash adds 40, 000 net acres and a little over 400 undeveloped locations. So Diamondback keeps winning the consolidation game and the Permian in somewhat

9:38 concurrent with that announcement There was an announcement that Kase is going to be succeeding. Travis is CEO at some point this year, which I think is a great model of succession planning. I

9:54 think been well-telegraphed, so to speak, but the timing of it is

10:02 interesting, just given the continued momentum that Diamondback continues to enjoy. I think the two interesting things I saw about this dealer, one, always look at the maps and where the colored

10:15 things overlay each other. I think Diamondback's done a really nice job through the years of piecing it through. I think that rolls into this stat, I find, pretty interesting. They went public in

10:28 October, I believe, of 2011

10:33 at1750 a share, and now, probably this morning, they're trading at175

10:39 per share. They've been as high as200 about a month ago It's up 10x.

10:47 And since that time, the SP 500 was called 1, 200 in October 2011 and is at 6, 000 a day, so call that 5x. So they 2x the SP 500. So Mark, what does this mean to the layman, this acquisition?

11:05 Well, I think it's just continued separation of the, you know, I term this segment as the alpha, we'll get to the beta here in a minute

11:16 over in the European theater, but you know, they've got since 2011 and before the IPO, you know, they've continued to focus on what ultimately matters in

11:34 this game of independent EP, which is

11:37 number one asset portfolio quality And number two, or one A,

11:43 is a relentless focus on being lowest cost provider. And so, you know, they haven't strayed from that model. My question to Chuck is, you know, what does the private equity source of, you know,

12:05 continued strategic consolidation, portfolio enhancement look like at this point, just given the numbers of takeouts that we've seen here over the

12:15 last couple of years? Yeah, you know, when you look in private equity and let's kind of make the analogy to, you know, drunken sailors in a bar, you know, we'll call, we'll call, you know,

12:29 starting in the early 2000s through, call it like 2017, we can call that, you know, two in the morning, the drunken sailors, everybody could raise as much money as they want And then the brakes

12:42 kind of got put on and probably. Two or three years ago, there wasn't much out there at all. I think we've seen private equity come back. You've seen carnealing go out and hit their hard cap,

12:53 raising almost a billion dollars. You've seen Pearl go out, raise a billion dollars, Quantum and Cap have both gone back out and raised. And so, you know, probably not two AM drunken sailors,

13:09 but maybe it's midnight and people got a good buzz on It might be the analogy of where we are in private equity world. I think, you know, kind of like you've been talking about the haves and the

13:20 have-nots as the consolidators and the Permian, I think you kind of had that in the private equity world. You know, the NGP's and Cap's quantum's are still around and you've probably shaken off

13:33 some of the smaller players that just won't be able to get back in the game. Yeah, quite a contrast from, I don't know, three years ago

13:42 Transitions, sleeves, or verticals were ramping, and there was a lot of,

13:48 I think, somber tone around the future of raising institutional capital for hardcore or foundational upstream assets. So, a lot's changed in the last three years. I don't think people realize that,

14:03 you know, institutions like, and let's use Rice University, they have a targeted endowment or targeted percent towards energy, right? Let's say that may be eight percent. Well, the amount you

14:16 have invested to date counts in that eight percent. And, you know, so if you're not selling anything, if you're not getting returned to cash from your existing investments, then look low and

14:29 behold, you're not gonna commit to new funds. And so,

14:34 part of having sales distributions go back is gonna help capital formation in the future. I'm going to put my best on for a second. But as a finance, bro, I wonder if these endowments go back and

14:50 question is 8 the right number and energy. Did they go back and kind of reset where they're putting their capital? I wonder. And I wonder if times like what we're seeing now, sort of the flight

15:04 back to quality, as you say, going back to oil and gas and things that have been proven to perform, do endowments increase their exposure to energy? Or is it just like, hey, it's 8 because the

15:16 person behind me said it was 8.

15:19 I'm wondering if they actually ever question the data. It was, they do, and that's your job as the CIO is to sit there and say, we need to build a portfolio and run all the scenarios. What if oil

15:34 goes to 200? Because the thing, you know, or what if oil goes to 10? Because at the end of the day, everything's - interrelated investment wise, right? Because if we're going to go to 30 Amazon

15:48 and those vans are going to do really well. And so you want to make sure you have diversification, right? Because you get rich, you get rich by being concentrated, you stay rich by being

15:60 diversified. And so if you look back historically, energy was the the hedge to inflation. So everybody had caught five percent or something like that of their portfolio committed to energy. And

16:14 then when this alpha story of horizontal drilling shale, new revolutions started happening, that's when people creeped up to kind of 10, 12 percent in portfolios. Because it in some way or shape

16:29 or form it always is going to mirror kind of the SP 500 and you know what kind of exposure energy has to there. And so it's fallen because at the end of the day as we've reported here. energy has

16:42 been less than 5 of the SP 500 for a long time. So as it performs better, then yeah, we may see it tick up, but that's pretty sticky. Just so folks know, you make decisions like this for five

16:56 and 10 year blocks. You don't make this quarter to quarter. So who's left in the Birmingham? Chuck, on private equity, uh, it feels like it feels like every one of the private equity firms has

17:10 at least one player. Still kind of kind of out in the Permian, and it's in various stages of development. But I mean, the big blocky private companies, I don't even know who's left endeavors gone,

17:22 double eagles gone. It's, uh,

17:29 they're getting kind of few and far between in terms of the big bulky ones. Let's go to, uh, what's happening in London. Yeah Now let's move to beta. The saga of BP. Um, you're sitting right in

17:42 the, in the heartland. I drove, I drove, I drove by a station this morning, but are not post that. Yeah. Cause I don't want you to be picked up and put in jail for something. You said that

17:54 might be seen to hurt someone's feelings over there. I have a, I have my VPN set on a set for New York city. So

18:05 that they don't know that's good. Yeah BP's got its capital markets day on Wednesday at 1, 300 GMT, which I believe is 7 am. Houston. Is that right? I don't know. Close enough. This is

18:21 somewhat elevated in profile, but due to the fact that as has been talked about in headlines and with not much specifics, but Elliot got involved and has nearly a 5 position And so BP hasn't really

18:38 signaled a lot of the details that are going to come out of its. essentially what's going to be a portfolio reset. How dramatic is it going to be? They've abandoned their

18:50 oil production, contraction targets in concert with their net zero pivot that they made back in 2020. And so the question is, what level of board disruption and capital allocation disruption we're

19:10 going to see relative to its

19:14 its goal to increase the renewables part of its portfolio, you know, 20 fold over the next several years. I just saw some speculation or some some rumored source unnamed source chart coming out of

19:30 the preparation for the meeting that yeah they're they're pretty much going to abandon the renewables targets altogether and I think

19:42 more recent cases of Elliott activism in the form of Southwest Airlines. I think half their board left in the midst of the shake up. It'll be interesting to see what happens to BP's board. Herm

19:55 Keller can rest easy but keep going. So, you know, the shares have lagged since this pivot, the renewables pivot, they're down 20

20:09 and peers are up 10 to 70. So, you know, it's a pretty harsh spotlight on this capital markets update and really the fallout in the aftermath of, you know, Elliot, is this far enough? Is this

20:24 deep enough? Is this fast enough? I think it's going to be really telling. I've never understood BP because literally any individual person I've met that works for BP is used to work for BP.

20:39 incredibly impressive. I mean, Jane Stricker over at the Houston Endowment. I mean, she's amazing. One of the best management teams I've backed at Caine, all XBP folks. Just anytime you meet

20:55 someone, but as a collective company, how they screw it all up, no idea It's simple, Chuck. You focused on US number one and on the independence. So let's stay there. They're super focused.

21:13 But you're talking about a global company based in the UK, where your investor base, half is not more, are pushing you to defy logic and go all in on green So, I mean, BP's tried. This is the

21:28 second time BP has tried to be beyond petroleum, by the way. And I think, you know, having worked at Royal Dutch, Same thing. It's like the mind share, the executive suite is sitting amongst

21:45 their children go to school with people that are mad at them because they're destroying the planet, blah, blah, blah. It doesn't make financial sense, but in terms of just who they're surrounded

21:57 by, who'd they go to cocktail parties with, it's all about making it look like we're doing the right thing. Now, you go to Midland, Texas, no one's bullshitting about like, oh, you're saving

22:12 the planet. Everyone's slapping each other on the back saying, hey, I hope oil hits100 so we all get rich here. I mean, it's just a siloed focus. We're making money versus, you know, you're in

22:24 London now. People are all believing the lie. And in fact, what it says in one of the articles is hilarious Like, the CEO of BP is going to drop a bombshell. Like, who is going to be like,

22:39 you're backing off of your huge green initiative. Wow, amazing. And you

22:44 had to have an activist investor get involved to tell you to do it 'cause you won't move fast enough. I will give them in their defense. It is freaking windy here all the time. So maybe, you know,

22:57 I'll give 'em that. I'll give 'em that. Go ahead, Mark. So, you know, over the last several weeks, the

23:08 BP shell combination rumor or speculation has come up, just thoughts there. Why would shell entertain that, you know, this far end, at least through the early phases of what WIL has done and has

23:23 promised to do at shell, why would shell take on this messy circumstance? There's two answers to that One is because you can organically figure out how to do it yourself.

23:38 And secondly is it's a gigantic distraction and it gives you, it buys you at least a year or two on your huge compensation package to keep going because everyone knows like shit, man, you just

23:52 bought this big thing, it's gonna take years to find synergies. And so those are the only two reasons why you do something like this. So I've got a solution. I've got the BDE solution Elliot

24:06 Capitol needs to nominate someone to the board and that someone is Scott Sheffield. Oh shit, yeah. We're going back E and P baby. Let's get the best in the Permian to tell us how to do it. I

24:21 think he has a little time on his hands these days. There's an interesting dynamic here. I think that's a little bit different with this one than recent Elliot moves And, you know, how handcuffed

24:37 are they going to be? relative to US domiciled and listed companies to affect the more radical doge-like changes that I think Elliot wants to see at BP. You know, even including, you know, I've

24:54 seen breakup mentioned a couple of times in pieces that I've read, it's going to be an interesting case study of US. fund activism in a foreign listed, particularly a UK listed company in dealing

25:10 with those rules. Well, no matter how much I'm impressed with YL as being CEO fantastic a, I don't think even he can figure out how to navigate getting shell to be domiciled in the United States.

25:25 I just don't know way that's going to happen. Yeah, and so how

25:32 how good is the alignment between what Elliot wants, versus what's possible just given the

25:42 special restrictions that are just inherent to

25:48 all the things that means to be a UK listed company. I'll go BCEF, I've got some time, I'm ready to do it. I'll enact the turnaround. If you look at this current president of the United States

26:04 and you listen to, you

26:08 know, kind of the jury box on both sides, people are like, you can't, they're saying like this president, you can't do what you're doing. You've fired the entire staff of this, of the military,

26:22 you've done this, you do this and people are like, you can't do this. But maybe if they pulls it off and it works, it provides a road map for Wall Street's very, very conservative. You know,

26:36 maybe it provides a roadmap where a CEO can come in and go, Guys, we need to be massive. We need to make big edits and changes. Now, that is super scary as an investor, but in BP's case,

26:48 they've been heading towards this cliff for quite a while, and no one stopped them. Yeah, I mean, you used to have Boone Pickens that did that through the old patch, but we don't have anybody

26:59 like that anymore, so maybe Elliot is a God rest his soul, no doubt

27:07 Well, let's move to the French in Texas, Mark. The white? The French in Texas on G and what's happening in our neck of the woods. Why don't you kick us off? Well, I'm shocked about this, but

27:24 on G pulls the plug on Texas Energy Fund projects. They had two gas-fired Pico projects

27:32 in Texas, and they pulled the plug on me. And the reason why they pulled the plug is they weren't going to meet their debt loan deadline because they can't get their blame it on supply chain because

27:45 they can't get actually that the gas fired turbines delivered on time. And that's the crux of it, right? That's

27:55 just picking up in the market. You're looking at deliveries starting to push into 2028. Yeah For anything meaningful and leading edge in terms of gas turbines, so those two projects, I think one

28:13 was listed among the 17 that were selected for this first wave of the Texas Energy Fund loan program, and they had to have a disbursement of those loan proceeds for the, forget which one it was,

28:29 there were two Spencer and Perseus combined almost 900 megawatts of power, which by the way, in that first wave of projects selected is almost 10 of the total 10 gigs of capacity. And so the gas

28:46 fire generation

28:49 greenfield projects are certainly bumping up hard against a reality in the critical equipment segment of the business. So, you know, how does that play out in terms of where we're actually gonna

29:04 get the data center and the power consumption growth that is projected, you know, we've got this real sticky wicket in the middle of gas fire turbine supply chain. So, there'll be some creative

29:17 workarounds and alternatives, but it really, you know, starts to push things out. You know, I've run some math and I've done this back of the envelopes. I haven't built an Excel model on it,

29:29 but if you look at kind of peak or plants, It feels like paybacks are at eight. 10 years when you run through the math and you run through kind of like base assumptions. Now, if you have some

29:42 crazy weather and you have some spikes, you can see payback in two or three years. It's just private equity and certainly not banks and debt financing are willing to lean into, hey, we're going to

29:58 see some crazy shit go down. And we know we'll have three days there where we make millions of dollars on

30:08 prices spiking. And so it's tough for the gas turbines and the peakers to compete with heavily subsidized wind and solar. It just is. When you think about the fundamentals of the peaker market, I

30:23 read this a few weeks ago as we were talking about the sun train, the battery train in Colorado. There are 999 peakers. in the US. and they had either in 20 years, 2023, their capacity factors

30:41 were 6. And so that's what this sun train was competing with in terms of the market. Really, really tough to make economics work with that type of idle time. If you don't get it precisely right on

30:55 the capital efficiency and your market forecast as to when you're gonna be used, that's why I think we're gonna see more and more of this equipment going to these behind the meter dedicated

31:09 facilities where the power's mostly on to run these data centers. But this is an ERCOT, this is a grid program and what they're dealing with in terms of getting in line for the supply chain and

31:25 getting access to these, I don't know the terms of these loans under the TEF, but this is really the. kind of the execution reality around a lot of this stuff. So you're saying maybe this is a

31:38 blessing for Angie, they're like, hey, thank goodness we're not going to make it. Yeah, I don't know if you're, you know, if you're playing in primarily the growthier part of the data center

31:52 type load, we're seeing more and more of these arrangements, these green fields popping up where it involves quite a significant, if not virtually all of the component of at least the first few

32:03 years of power generation, power delivery is going to be behind the meter. So you're not tangled up with things like the PUCT and ARKOT, et cetera.

32:13 And, you know, that competition will probably pay more for that equipment to get a better place in line. I just texted CEO of a large rap. I'm gonna see if they, well, they're kind of, they're

32:24 bigger than that. But I'm gonna see if he has any comment on it. I love it. Well, Dan, this was fun It's been one more thing. Got one more thing. Oh, do we? Okay. Good. Yeah. And, you

32:36 know, in our continuing role through the first several weeks of the administration, I don't know if you guys saw that the president has banned, I guess, through executive order, US scientific

32:48 participation in the UN's IPCC,

32:52 which is in its, I guess, the working group three, which is working on, what is it, the climate assessment update report that's scheduled out for 2028 and 2029. And that was right in front of

33:06 what I think of, they call it a plenary in China that was supposed to actually start today. The NASA's chief scientist is

33:17 the co-chair of this working group, and ostensibly this drafting or this outlining session that was supposed to occur in China But basically, we've taken NASA and all the other alphabet. scientific

33:30 groups that are involved in atmospheric and climate science and said, put your pencils down.

33:37 Any thoughts there? Chris, Chris Martz probably had the best tweet about this. Since the science has settled, nobody can bitch about this, right? Why do we need to keep doing this?

33:51 You know, if you don't accept it, I am, you know, my two cents worth is you get away from the hyperbole and what the politicians and the non-scientists say about this report. It's actually really

34:09 good stuff and things we probably ought to be doing. And so, you know, if I had, if I kind of had had trumps here and say, let the scientists get in there and mix around with the other scientists

34:24 and let's try to get better at our models

34:28 and the like. But yeah, no, just too much partial quoting, lobbyists, politicians use this report for things that doesn't actually say. Well, as Steve Kennan has pointed out that the executive

34:46 summaries and the headlines that blare upon publication of the last report is that there's a disconnect between what the details say and what's portrayed as conclusions in the headlines. So I think

35:02 our continued involvement given the right people in those chairs and the overall influence. And I would guess significant funding of the effort. I wanna stay involved with the right people to force

35:19 some more rigorous scientific method type of principles on this group that's like herding cats to put it mildly. Um, because I do think a lot of those, um, principles have gone by the wayside,

35:35 but there is, I think there is value in staying involved at the foundational technical and analytical level. It's getting the political translation of it, um, more consistent with the work that's

35:48 being done and also recognizing the vast errors and limitations and things like climate modeling, I think is a worthy thing to stay involved with and pushing that more to the forefront of

35:58 understanding of how this stuff works or doesn't work. So I don't know, it's, it's a, it's a, it's a bombastic political move and headline, which is not short in supply here over the last few

36:12 weeks. Uh, is it a, you know, is it a fight worth picking at this point? I don't know. Um, I think there'll be some resolution to it because the work will continue and it, I think it's in our

36:24 best interest to make sure that work gets much more back on track scientifically. We should keep that as a running, let's discuss in ongoing shows.

36:38 Keep that up. I got that. I did notice on Apple Maps this morning that it is the Gulf of America. Really? Woo hoo. Dang. There is so much, so many great memes out there

36:52 of names for the Gulf of America. It's so good. I'm having so much fun. People are so witty, it's great The Gulf of Van Halen. I love it. No, we're gonna call it the Van Halen Canal. The Van

37:07 Halen Canal. They were like just saying and in the last episode. Oh, to Panama. That's hilarious, man. So good. Hey, final, the last story is these cancellations on Microsoft, on data

37:20 centers. I'm curious about, 'cause we've been talking about data center data center, that's the big bottleneck. Well, power is the bottleneck to powering data centers. We can't get enough power

37:31 in the locations where the data centers need to exist to run these super fast and video chips, et cetera. But what's happening with Microsoft canceling projects? I think their inside versus outside

37:48 has changed. And a lot of these were not signed agreements. I look at more as, you know, they went out and bought a bunch of options in some cases And what you're talking about is these

37:58 cancellations or decisions not to proceed amounts to about 200 megawatts right now. Against that backdrop, and I'm sure it's hitting some stocks today, I haven't looked at some of the derivative

38:10 stocks, but against that backdrop, Microsoft and others are continuing to strongly reiterate their level of capital spending on AI, Microsoft reiterated its80 billion plans for this year I don't

38:25 think this arm's race. slows down. And one of the, one of the things that was referenced as a potential, this is just moving some data center agreements and contacts around, particularly as it

38:38 relates to OpenAI, Microsoft has the

38:42 right to first refusal on whether or not OpenAI uses a data center source outside of Microsoft. You know, keep in mind they, I think it was on inauguration night or maybe the night after Sam was

38:58 with Larry Ellison and the CEO of SoftBank talking about their collaboration on500 billion worth

39:06 of AI build out in an investment. So

39:12 200 megawatts, I think it's my personal read of it is, and I could be dead wrong, is you just

39:22 scattered your options around in. and are seeing things play out differently where you don't need, you know, maybe they're running into things where ultimately the provider can't get power on time

39:33 relative to their needs in that particular location. And some of it may be co, maybe co location issues. They got the permits, they built the location, they just may not send the rig there. I

39:44 mean, we've all done that. So, yeah. Yeah, we'll put, we'll put the transition, we'll do some consulting to these stranded data center providers on how to stack these things.

39:56 Perfect. Who knew Abilene Texas was going to be the, the greatest spot in tech going forward. But God bless them. Arizona, Abilene State, man. It's like Grant Boone, who's the voice of the

40:12 LPGA is an Abilene A-S-U is A-S-U, Abilene State. Is that the name of the voice of Abilene Christian? Abilene Christian. Sorry. A-C-U. AC there's some action out there man exactly exactly hey

40:30 Chuck what are you doing are you uh uh what are you doing in London are you um kind of touring you're on a piece and what's happening here the the uh the girlfriend and i have uh just come back come

40:43 home to see her her folks and so you know be back be back in a few days how does she feel about us calling her neck of the woods beta i'm not going to tell her all right she's at work done all right

41:03 exactly exactly all right boys good seeing everybody shows better when you're here at kurt kurt totally dude thank you absolutely i'm gonna make it this is easier but i'm gonna make it back when you

41:17 come back we'll i'll make it in office too we'll make this work oh we'll probably have to be remote but i I'll make a special comment below we want to hear their people's comments because we want to

41:28 give the people what they want Right. Get the people what they want.