What is the Data SuperCycle?

Investing in the Data SuperCycle SuperCycles – periods where prices of particular products are significantly increased (or decreased) for extended periods – occur when massive new demand comes online.

SuperCycles can last more than 30 years and significantly contribute to GDP growth. Often they are propelled by demographic, infrastructure and technology changes.

We have been tracking a new SuperCycle that relies on data and data analysis: The Data SuperCycle. It will create huge value and at DYDX Capital we believe it is going to be the defining economic wave of the 21st century.

The Data SuperCycle has some traditional drivers

1. Demographic Change:

Millenials and Gen Z are the largest US cohort and first digital native population. They are running the economy and demanding more data tools.

2. Rapidly Scaling Infrastructure:

Large incumbents and new upstarts are spending 100s of Billions of dollars on new GPU clusters, LLMs and Data Centers to power Data Analysis.

3. Technological Paradigm Shift:

The acceleration of data science, beginning in 2014, has rapidly progressed from machine learning to deep learning to AI unlocking vast reservoirs of data.

Together these drivers are increasing the speed of market change unlocking vast opportunity for new companies to capture value.

We already see the effects of the SuperCycle in Capital markets.

The NASDAQ has significantly outperformed the DOW over the last decade. In large part this has been due to the value created by data focused companies, whether it is incumbents powering compute such as Microsoft and Amazon, or infrastructure companies, like chip maker, NVIDIA, the impact has been significant. Notably nine of the ten largest companies on the index were venture capital backed. Now, OpenAI, Anthropic and xAI, among many others, are positioned to continue this momentum. Venture Capital and company builders are at the beginning of a new partnership in value creation and capture that is accelerating. It will come from using the data infrastructure being put in place to solve hard problems. Investing in the Data SuperCycle to build these companies is a huge opportunity and that’s our mission at DYDX Capital.