In the Loop AI

On Tuesday, voters pushed back on AI data centers. Democrats won the House and the Senate, flipped governorships in Texas, Ohio and Georgia, and data-center restrictions passed in towns across the country. Goldman Sachs warns that 45% of planned US data-center capacity could be affected, and Texas alone is about a quarter of it. Ejaaz breaks down why an AI bull thinks the slowdown might actually be good for AI: no overbuild, data centers that pay their own way, and a race that rewards whoever uses compute most efficiently.
We also cover why voters turned on data centers (power, land and water), Gina Hinojosa's conditions in Texas, the water myth, the market's split reaction (stocks up, AI stocks down, Elon's companies hit hardest), the 10 to 15 gigawatts that may not come online, the new stakeholder in the AI money loop, and what it means for the race with China.
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Timestamps
00:00 America Hits Pause on AI
01:34 Power, Land and Water
02:38 Why Voters Turned
04:18 What the Midterms Changed
05:08 Texas Wants Data Centers to Pay
07:07 A Bipartisan Backlash
07:29 The China Problem
08:34 The Water Myth
09:55 Who Pays for Power
10:39 The Market Reaction
12:06 A New Stakeholder
13:07 Good News for the Bears
14:19 Stocks From Here
15:34 Efficiency Wins
17:24 AI Gets More Expensive
18:03 US vs China
19:51 Final Thoughts
#ai #datacenters #midterms #elections #elonmusk
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Over the weekend, Elon Musk told a Grok Bot user that "the cost of serving Grok Bot was unsustainably high relative to revenue," and usage limits tightened for hundreds of thousands of paying users. Three days earlier he'd pointed out that Grok Bot has no free tier, and two weeks before that he said he'd never seen anything grow as fast. Ejaaz breaks down what's actually going on: SpaceX can rent the same GPUs to Anthropic, which pays $1.25 billion a month today and about $3.1 billion a month from December, while Grok Bot's hardest tasks run on Anthropic's own Claude Opus 5.5.
We also cover Grok Bot's rise to 600,000 daily users, the delays on Grok 4.8, the $60 billion Cursor acquisition, the trade-off between renting compute and running his own AI agent, the bear and bull case, and whether this is the first sign that AI is too expensive to sell at today's prices.
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Timestamps
00:00 Elon's Grok Bot Problem
01:51 What Grok Bot Is
03:48 How Grok Bot Took Off
04:47 Grok's Model Problem
06:18 The Contradiction
06:58 The Landlord and the Tenant
08:35 The $60 Billion Cursor Bet
09:53 Rent the Chips or Run the Bot?
10:50 Why AI Agents Matter
12:46 Limits, Not a Shutdown
14:01 The Bear Case
17:46 The Bull Case
19:15 Final Thoughts
#elonmusk #grok #spacex #anthropic #ai
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Last week, Anthropic's S-1 showed a company that was finally making money. Today's amended filing adds the third quarter, and that profit is gone: revenue jumped to nearly $17 billion, up 47% in three months, but Anthropic swung to a $567 million operating loss, and it disclosed $895 billion in compute and infrastructure commitments, about $70 billion of it due in the next 12 months. Ejaaz breaks down why: demand outran the compute Anthropic had booked, so it paid up for $5 billion of short-term compute to keep serving customers.
We also cover the $2 billion donation-matching charge, where the $895 billion is going (SpaceX, Google, Amazon, Broadcom and the neoclouds), whether Anthropic can pay for it, OpenAI's cut-down fundraise and the junk-rating worry, and the bull and bear case for the Anthropic IPO.
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Timestamps
00:00 Anthropic's Profit Is Gone
01:50 Catching Up on the S-1
04:28 The Q3 Numbers
05:24 Three Reasons for the Loss
06:54 The Restaurant Analogy
07:56 The $2 Billion Donation Match
09:19 The $895 Billion Bill
12:32 Where the Money Goes
14:18 Can Anthropic Pay for It?
16:38 Less Than 0.1% of Budgets
17:48 Is the IPO a Buy or a Sell?
22:14 Final Thoughts
#anthropic #claude #ipo #ai #stocks
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AI stocks just had a brutal week. Google lost more than $500 billion in market value, Amazon fell 12% after hours on its earnings, and Intel had its worst day since 1974, all while the biggest tech companies reported record cloud revenue and promised to spend even more on AI next year. So is this the dot-com bubble all over again? Ejaaz walks through how the selloff started, why search and the open web are cracking, and who is really paying for the AI buildout.
We also lay out the bear case (concentration, borrowing, VC-subsidized spending and the walls going up around Reddit and Amazon) and the bull case (real demand, cash-rich hyperscalers, labs with money in the bank, and what happened to the internet after 2000), and why this looks more like a correction than a collapse.
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Timestamps
00:00 Is the AI Bubble Popping?
00:55 Big Tech Doubles Down
02:14 How the Selloff Started
03:11 Three Signals From Earnings
04:07 Search Is Breaking
04:59 Reddit Builds a Wall
07:20 The Overbuild Question
09:00 Who's Paying for It
10:13 Walls Around the Web
10:54 Amazon Blocks Meta's Muse
12:34 The Bear Case
13:46 The Bull Case
17:23 The Internet Still Won
18:51 Final Thoughts
#ai #stocks #bubble #nvidia #google
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Google now has the number one AI model in the world. Gemini 4 Carbon tops the Artificial Analysis Intelligence Index two weeks after Gemini 4 Argon, and Google Cloud revenue more than doubled to $30.7 billion. So why did Alphabet stock open down nearly 12%? Search, the business that pays for everything, grew just 12% and fell below half of Google's revenue for the first time as AI Mode answers more questions and earns less per query. Add a quiet change to how Google charges advertisers, the exits of Jeff Dean and Demis Hassabis, and a paper loss on SpaceX, and the market isn't buying the comeback. Ejaaz thinks it's wrong.
We also cover Genie 4, Google's new world model, which uses the cheaper Gemini 3.8 Flash as its planner; Microsoft offering buyouts to 60,000 employees, its own AI teams included; SK Hynix selling out its memory through 2029; and China's STAR 50 tech index falling more than 40% since June.
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Timestamps
00:00 Google Has the #1 AI Model
01:58 Gemini 4 Carbon
03:51 Earnings: Cloud Doubles
04:39 Why the Stock Fell 12%
05:13 Search Drops Below 50%
06:29 $200 Billion in Capex
07:27 Can You Trust the Benchmarks?
08:19 The Ad Auction Change
09:42 Ads in AI Chat
10:29 Google's TPU Customers
11:55 Jeff Dean and Demis Hassabis
12:42 The SpaceX Loss
13:23 Genie 4
16:03 Microsoft's 60,000 Buyouts
18:40 SK Hynix Sold Out Through 2029
19:41 China's Tech Stocks and Final Thoughts
#ai #google #gemini #stocks #earnings
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