Palihapitiya Claims Big Company Earnings Growth 'Literally Zero' Related to AI

Billionaire venture investor Chamath Palihapitiya made a surprising statement on August 20, claiming that the earnings growth of the biggest companies has 'literally zero' to do with AI. This assertion is in stark contrast to the market's current pricing, which assumes a significant connection between AI and earnings.

Nvidia, one of the companies mentioned, has seen a 945% gain over five years and a 24% gain over one year. Palihapitiya owns Nvidia and has been critical of the data center industry, warning that it has the potential to unwind 200-300 basis points of annual GDP if it metastasizes.

Microsoft's recent quarter shows a different story, with Q4 FY2026 revenue reaching $90 billion, up 18%. Azure surpassed $100 billion in annual revenue and grew 41%, while commercial remaining performance obligations expanded 84% to $678 billion. Satya Nadella tied this growth to AI.

Nvidia's Q1 FY2027 earnings report showed revenue of $81.615 billion, up 85% year over year, with Data Center revenue up 92%. Palihapitiya's views on the role of AI in earnings will be put to the test when Nvidia reports Q3 2026 after the close on August 26.