Eric Schmidt on AI capital requirements
From Eric Schmidt Talks AI, TikTok | Bloomberg Talks · · Bloomberg Podcasts
“The arrival of these large language models is a new economic problem in our industry because the amount of capital in my 50 years of doing software we never had capital constraints. Now in order to do anything you need 10,000 or 20,000 Nvidia H100s, B200s which cost $40,000 a pop. So you do the math, all of a sudden your idea to get started has to have a billion dollar valuation.”
On , Eric Schmidt, Co-founder of Schmidt Futures at Schmidt Futures, spoke about AI capital requirements during Eric Schmidt Talks AI, TikTok | Bloomberg Talks on Bloomberg Podcasts.
About Eric Schmidt
Eric Schmidt, the former CEO of Google and co-founder of Schmidt Futures, delivered the commencement address at the University of Arizona in May 2026. During the speech, he discussed the potential of artificial intelligence, stating that AI is "already accelerating research at a rate that we could not have imagined even 5 years ago" and that it is "designing new molecules, running simulations, identifying patterns in genomic data that no team of humans will uncover in a lifetime." He also acknowledged fears about technology, saying, "There is a fear in your generation... that the machines are coming, that the jobs are evaporating." Reports indicate that portions of his speech were met with boos from the graduating class. In other appearances, Schmidt discussed the global AI race, describing it as "really an energy race" and noting that the "current number one problem in the AI companies" is a "lack of data centers." He also commented on government concerns about AI, stating that governments "want to win, but they're also concerned about safety for their populations and can it be misused."