The Titanic thread

[Dr Strangelove]

[Dr Strangelove]

The layoff wave tells two stories, not one.

Tech giants like Amazon, Meta, and Microsoft are cutting to fund GPU purchases. Their revenues are growing. Their stock prices are climbing. They're firing people to free up cash for compute. This isn't cost-cutting during a downturn. It's a forced reallocation from payroll to datacenter capacity. The math is brutal: every percentage point of headcount reduction funds another batch of H100s.

Meanwhile, UPS, Nestle, Ford, and Target are cutting for the opposite reason. They've already deployed AI tools that work. Customer service automation, supply chain optimization, generative design systems. The productivity gains are real and compounding. These companies don't need to buy massive GPU clusters. They're renting inference from hyperscalers and cutting headcount because the math finally works.

Both sides are feeding the same beast. Tech companies are buying the shovels. Everyone else is buying the gold those shovels dig up. Semiconductor companies sit in the middle, collecting rent from the entire value chain. TSMC, NVIDIA, and ASML are printing money while employment craters on both ends.

The timing matters. We're at 10% enterprise AI adoption, heading toward 50%. History says this phase moves fastest and generates the most wealth. But that wealth is concentrating in compute, not labor. The gap between market cap growth and wage growth has never been wider. This isn't a recession. It's a rebalancing. And most workers are on the wrong side of it.

Guys, this is so important to understand fully:

The market is being dragged up by only about 10 companies, all AI, all round-tripping revenue, all making outlandish claims of future earnings while producing none of it in real life. They are now actively coordinating public relations messages and cross-sells to each other in order to continue to push the bubble up.

This is extraordinarily dangerous. I’ve not seen this before in my entire career. It’s a bubble that makes the dot-com era look like a pimple in comparison.

Laying the current BS aside, and taking their claims at face value, investors need to realize that we will never get there. Not for a decade or more.

We don’t have the energy infrastructure to provide for the data centers to even get remotely close to the earnings these companies have claimed.

And if they do magically transform our society, somehow, what it will mean to you is far fewer available jobs and much, much higher energy costs.

And yet, they drag the markets up every day. Eight out of 11 sectors, fully 80% of the companies in the index, were DOWN yesterday.

[Dr Strangelove]

The real story here is Nvidia stopped being a chip company and started building a platform moat across every industry that matters. Pharma, defense, automotive, telecom, energy, transportation. They’re not just selling GPUs anymore, they’re embedding themselves into the infrastructure layer of AI deployment. Every partnership is a lock-in play.

The $500B revenue projection through 2026 tells you they’re pricing in platform economics, not hardware margins. That Nokia investment isn’t charity, it’s about controlling the edge-to-cloud stack for AI inference. The quantum computing integration is the same move: own the connection points between every compute paradigm. When your chips become the translation layer for quantum, you’re not competing on performance anymore, you’re competing on switching costs.

This is the Amazon playbook from 2005. Start with infrastructure (AWS/GPUs), then move up the stack into every adjacent market before anyone realizes you’re not just a vendor anymore. The difference is Nvidia’s doing it faster because they have infinite cash and every Fortune 500 company is desperate to not miss AI. By the time people realize Nvidia owns the platform layer, it’ll be too late to build an alternative.

[Dr Strangelove]

This is why the shutdown is indefinite, rescission means promises are worthless.

[Dr Strangelove]

Eat the rich

[Dr Strangelove]

[Dr Strangelove]

The rot is total.

[Dr Strangelove]

This is a reflection of the USA at large, not just ship building. Resting on their laurels the new world has eaten their lunch. Yes, the US is large on the world scene... for now. Just like Russia. They took their eye off the ball and got distracted by quick gain in shiny AI and not investing in the nuts and bolts of infrastructure for DECADES. This rot is baked in now. Canada needs to back away from the US like a survivor backs away from a zombie horde and bunker down.

[Dr Strangelove]

Picture says a trillion words.

[al_keda]

The infuriating thing is that Congress does nothing.

He's taking their power away from them, on tariffs, war, and even cabinet appointments. They could fire Kennedy. They choose not to.