12 …Technology Compounding Over Fifty-Plus Years = Better + Faster + Cheaper → More Note: PC units as of 2000. Desktop internet users as of 2005, installed base as of 2010. Mobile internet units are the installed based of smartphones & tablets in 2020. Cloud & data center capex includes Google, Amazon, Microsoft, Meta, Alibaba, Apple, IBM, Oracle, Tencent, & Baidu for ten years ending 2022. ‘Tens of billions of units’ refers to the potential device & user base that could end up using AI technology; this includes smartphones, IOT devices, robotics, etc. Source: Weiss et al. ‘AI Index: Mapping the $4 Trillion Enterprise Impact’ via Morgan Stanley (10/23) Enabling Infrastructure CPUs Big Data / Cloud GPUs Computing Cycles Over Time – 1960s-2020s, per Morgan Stanley Note: Axis is logarithmic; i.e., there are expected to be tens of thousands more AI Era devices than Mainframe devices 1960 1970 1980 1990 2000 2010 2020 2030 1 100 10,000 1,000,000 Mainframe Minicomputer PC Desktop Internet Mobile Internet AI Era ~1MM+ Units ~10MM+ Units ~300MM+ Units ~1B+ Units / Users ~4B+ Units Tens of Billions of Units MM Units in Log Scale Technology Compounding = Numbers Behind The Momentum