In the Loop AI

The stock market just lost $2 trillion in 40 minutes, and AI stocks took the worst of it. Intel is down more than half since October, AMD fell 17% in a day, and memory and cybersecurity names went red with them. Ejaaz breaks down why it happened (valuations, the ROI question and the midterm vote on data centers) and why he thinks the market is wrong: demand for AI is still climbing, with GPU rental prices up as much as 106% since July while token prices fell 58%.
We also cover where the money went (Apple, Amazon and Microsoft held up), Black October, Nvidia as the bedrock of the AI trade, the memory-stock bear case, why AI agents need far more CPUs, Palantir's record quarter, the fridge and blood-bank hacks, China paying a premium for Nvidia GPUs, how little the Fortune 500 spends on Claude, Big Tech's buyouts and Anthropic's IPO valuation.
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Timestamps
00:00 $2 Trillion in 40 Minutes
00:51 Where the Money Went
01:32 Why the Market Is Wrong
02:47 Black October
03:32 Intel's 50% Drop
04:57 The Midterm Effect
06:15 The Bull Case
07:07 Nvidia, the Bedrock
08:34 GPUs Are Worth More Than Ever
10:09 The Memory Stock Problem
12:04 Intel, AMD and the CPU Boom
14:28 The Skeptic's Case
15:49 Cybersecurity Goes Red
17:32 China Wants Nvidia GPUs
18:42 The Long View
21:26 The Bear Case
23:19 Anthropic's Valuation
24:12 Final Thoughts
#ai #stockmarket #nvidia #intel #amd
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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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