Bloomberg Surveillance Single Best Idea with Tom Keene: Joumanna Bercetche and Heath Terry
May 5, 2026
Discussion of the UAE carving an independent regional path and how Gulf states view the war from a Dubai perspective. A deep dive into AI as an infrastructure story, including the economic shift toward massive buildouts and who wins the margins. Exploration of identity and security for AI agents and the role of enterprise identity solutions.
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Higher Margins Shift To Data Centers And Cloud
- Infrastructure margins from AI are higher than traditional software, creating new concentrated profit pools.
- Terry quantifies AI infrastructure with roughly 50% incremental margin versus prior 90% in software, shifting profits to data centers and cloud providers.
AI Trade Is Still An Infrastructure Story
- The AI trade remains primarily an infrastructure story focused on massive capex and data-center buildout.
- Heath Terry calls it the biggest transfer of economics within an industry he's seen, emphasizing continued infrastructure growth.
AI Is Reallocating Industry Economics
- AI is driving a massive infrastructure shift as incremental margin dollars move from software and internet to AI infrastructure.
- Heath Terry estimates $710 billion of AI infrastructure built this year rising to $2.1 trillion by 2030, creating a 40% margin-delta to infrastructure.