Tech companies stressing that the next leg in the AI race is all about data.

That's the focus of today's Tech Trek.

Dear Dromosa, here with that, heyday.

Mike, it's something I hear over and over again these days your model, your large language

model or generative AI model is only as good as your data.

Now yesterday I was at the Bank of America Tech Conference here in San Francisco talking to a number

of CEOs and analysts, zero surprise for our audience, a lot of that discussion focused on artificial

intelligence.

Now, Dynatrace is an enterprise cloud platform seen by some analysts as a clear leader in the broader AI space.

CEO Rick McConnell told us about the importance of that data.

Generative AI is going to enable all companies to compete more rapidly, develop applications faster, get to market more rapidly.

So I think all of that's true.

What is interesting though is that the digital transformation waves, the waves toward

cloud migration, they are creating an explosion in data and that data needs to be analyzed and analyzing that data is going to require more

and more automation and AI can bring that degree of automation.

Yeah how do you crunch all that data?

How do you collect it all?

So to that point, I also spoke to Microchip CEO Ganesh Morthy

about how cloud providers, the hyperscalers like Amazon,

Microsoft, Google, how they can accommodate these huge amounts of data that generative

AI engines require.

I asked him also more broadly if CAPEX will increase for them as part of this shift. Absolutely, and I think you will also find that companies like us

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