The a16z Show · Tuesday, July 14, 2026
Gavin Baker noted that the return on invested capital (ROIC) for major AI GPU spenders has seen a 10.3X increase. While the current ROI is positive, he acknowledges that the significant spending expected on Nvidia's Blackwell platform introduces an open debate about future returns, though he personally remains optimistic.
“It is return on invested capital of the biggest spenders on GPUs, who are all public.”
“And those companies, since they ramped up CapEx, have seen, called it a 10.3X increase in their ROICs.”
“It's an interesting and open debate about whether or not it will continue to be positive with the quantum of spend we're going to have on Blackwell.”