Swimming with Sharks: Enterprise AI Unleashed: S3 Episode 8: Adam Patti

The world is buzzing with AI, but beyond the dazzling applications lies a foundational truth: it's all built on robust infrastructure. In a recent captivating podcast, our very own Kevin J. Dean sat down with Adam Patti, the visionary CEO of VistaShares, to pull back the curtain on what's truly powering the AI revolution. 

Episode Summary

In a dynamic conversation on Swimming with Sharks: Enterprise AI Unleashed, Kevin J. Dean and Adam Patti explored the evolving landscape of Artificial Intelligence from an investment and infrastructure perspective. Adam, a seasoned veteran of the Exchange Traded Fund (ETF) industry, shared his journey and the genesis of VistaShares, a firm dedicated to providing accurate exposure to "super cycles" – long-term disruptive technologies like AI, robotics, and electrification.

Patti highlighted the crucial distinction between investing in front-end AI applications and the underlying infrastructure. He revealed that many existing AI funds are heavily weighted towards "Mag 7" tech companies, which, while large, are not primarily AI-centric in their core revenue. VistaShares' innovative approach, embodied in their AI Infrastructure Fund ($AIS), focuses on the "picks and shovels" companies building the data centers and high-performance semiconductors – the true profit centers in the current AI landscape. The discussion delved into their meticulous "Bill of Materials" methodology, which maps the entire supply chain of AI infrastructure and identifies companies generating at least 30% of their revenue directly from AI projects.

Beyond the investment strategies, the conversation broadened to critical factors influencing AI's future, notably the escalating energy demands. Patti underscored the enormous power requirements of new data centers and the urgent need for robust energy generation solutions, even leading some hyperscalers to build their own power plants. The episode also touched upon the fascinating and often surprising shifts in the job market, suggesting a growing demand for "blue-collar" technical skills as white-collar tasks become increasingly automated by AI.

Interview Highlights

• The "Super Cycle" Concept: Understanding how long-term disruptive technologies like AI are converging and reshaping industries.
• Beyond the "Mag 7": Why true AI investment lies in the underlying infrastructure, not just consumer-facing applications or large tech companies.
• VistaShares' Unique Methodology: A deep dive into their "Bill of Materials" approach for identifying key players in the AI supply chain, focusing on data centers and semiconductors.
• Energy as a Critical Constraint: The immense power demands of AI and the innovative solutions emerging, including the re-emergence of nuclear power for data centers.
• The Shifting Workforce: A compelling argument that AI will boost demand for "blue-collar" technical and building skills, while automating many "white-collar" roles.
• Long-Term Vision: How VistaShares’ investment strategy is designed to evolve as the AI industry matures and profits shift from infrastructure to consumer applications.
• Strategic Business Planning: The importance for enterprise leaders to envision how AI can transform their business processes, even if implementation is years away.

Key Takeaways

• AI is an infrastructure play, for now. The significant profits are currently being made by companies building the foundational hardware and facilities.
• Energy is the next frontier. The massive energy demands of AI data centers will drive innovation and investment in power generation.
• The job market is shifting, not disappearing. While AI will automate many tasks, it will create new demands for skilled trades and technical roles.
• Strategic foresight is crucial for businesses. Leaders must plan how AI will integrate into their core processes to remain competitive in the coming years.
• Discipline in investing is paramount. Avoid chasing hype and stick to a well-defined methodology that understands where real value is being created.

About Adam Patti

Adam Patti is the visionary CEO of VistaShares, a firm dedicated to providing precise investment exposure to groundbreaking "super cycles" that are fundamentally transforming global industries. With a career spanning back to 2001 in the Exchange Traded Fund (ETF) business, Adam previously founded his first company in the space in 2006, building it to approximately $5 billion in assets before its acquisition by New York Life in 2015. His extensive experience includes building out global ETF platforms and a deep understanding of how to identify and capitalize on disruptive technological shifts. Patti's insights are particularly valuable given his commitment to accurate methodology and disciplined investment strategies in rapidly evolving markets.

Adam's LinkedIn: https://www.linkedin.com/in/adam-patti-96919/
Website: vistashares.com