Mike Scarpelli: I actually think it’s both, but I definitely think the fact that we kind of saw customers more reengaging with us in July on contracts and that continues into this quarter, I think it is easing a little bit at the top level in terms of approvals for customers and they’re willing to commit. But it takes time to convert that to consumption. With that said, consumption is good. It was really good today as an example. But it’s only one data point. We want to see more days of that before we think the — we’re into a real recovery. I think stabilization is the right term. We’re not seeing customers reduce their consumption right now.
Kirk Materne: Okay. And then Frank, just as you spoke to a lot of executives at Summit, do they recognize the fact that the road to AI does require perhaps a heavier level of investment than they were thinking 12 months ago? How do you think that factors into sort of their thinking on budgets as we go into ’24? Thanks.
Frank Slootman: Yes. The reality is, they don’t really know yet, in any real definitive terms, what this is going to take. I mean I think a lot of people, I think this is correct, they have characterized their foray into language models as experimental exploratory and sort of trying to get their arms around how big a breadth box is this. So it’s going to take a while before we get a real read of what the level of investment is. There are people who are going to — stomach to do this. I mean one of the challenges — one of the great things about search historically has been that search, also had a very potent business model that go with it to pay for it and we cannot sort of unleash AI and have no business model that pay for, and people will get tired of that really, really quick.
So these are — GPUs from NVIDIA, they aren’t cheap, as powerful as they are. So, we all have to bring that into alignment and into focus and have a sensible go-forward strategy. So, a lot of the use cases we’ll focus on, what are we getting for this, right? This is not just fun and games and planning your next trip to Yellowstone. People are going to be asking very, very hard-hitting questions, “What is this doing for us?”
Kirk Materne: Thank you, all.
Operator: Thank you. The next question will be from the line of Raimo Lenschow with Barclays. Your line is now open.
Raimo Lenschow: Thank you. Great to see the stabilization as well from my end, congrats there. Frank, one for you more — as you — as we all realize that data is kind of the new fuel, we do see more [indiscernible] like, oh, no, I have the data, I have to data, which kind of in a way like kind of puts them on a slightly different course than it used to be compared to your partnership. How do you see that competitive landscape evolving for you, since you, in theory, are the natural kind of holding source for data that is used in AI? How do you see this playing out for you guys? Thank you.
Frank Slootman: Well, we see it play out really well. I think we agree with you. I mean, we think that data is becoming infinitely valuable and that’s for all kinds of reasons, because we can no longer run enterprises and institutions based on what we call anecdotal observation because the world is too dynamic, too disruptive and we have this massive disintermediation happening. We no longer have all these intermediaries between us and the end customer. You can only run direct-to-consumer businesses with data. I mean, you see that, for example, in insurance like auto industry, companies like GEICO and Progressive and Liberty Mutual, I mean, you can only run these businesses on top of data, telemetry data being really important.
