Riding https://nitter.siddz.com/t.co/oiZ9KpCzYv

OpenAI CEO Sam Altman believes people owning RAM is wasteful, and that it belongs in data centers instead. "From a global allocation perspective, actually, it’s quite terrible to have everyone have a bunch of the world’s limited supply of DRAM sitting in their own computer."

The amazing thing about Google getting hammered today is not that its core Search business is under stress. It’s how long it took investors to figure that out. AI is changing the regime under which the hyperscalers became some of the highest-return-on-capital businesses in human history. Google & Meta, and to a lesser extent Amazon, are at the centre of this disruption. They became the modern-day landlords of the digital economy. Google auctioned search intent. Meta auctioned attention. Amazon auctioned product discovery. They controlled access to consumers and charged advertisers increasingly expensive rents for the privilege. Beautiful low capital intensive businesses. Until the rules change. AI is doing precisely that,faster than the internet revolution that created these empires. I barely use a web browser for search anymore. It has degenerated into a window for opening websites. Why scroll through sponsored links & SEO garbage for dog food when an AI assistant can find what I need? I doubt I am alone. Their response? Join the party and build staggering amounts of compute. Google alone is heading towards US$200bn of capex in 2026, while its Search growth is already slowing. Clayton Christensen explained the problem in Innovator’s Dilemma. Incumbents struggle when technological disruption destroys the economics of the very businesses that made them successful. But throwing trillions at the disruptive technology won’t make another high ROIC units. Instead it renders the entire shop average. Worse, AI is on track to become commoditised, with economics eventually resembling airline seats: enormous fixed costs, relentless capacity additions, falling unit prices and fierce competition. Models become cheaper, more interchangeable and increasingly tailored to individual needs. Much of that intelligence will eventually run locally on personal devices. Who pays the landlord when the tenants no longer need his building? In 2025, Google generated US$225bn from Search, Meta US$196bn from advertising. How much of that can they defend, let alone replace, while committing hundreds of billions to a data centre arms race? It’s just ridiculous. In 2 years time they can buy these zero-moat compute factories for 20 cent on the $. The problem is the moat. I’d argue that 98% of businesses have no durable moat. Schumpeter’s creative destruction eventually erodes any competitive advantages in a free enterprise system, growth fades and returns on capital gravitate towards 5–7% as competition brings supply into balance with demand. Bruce Greenwald explained in Competition Demystified just how hard it is to build a economic moat. My favourite is what Buffett calls share of mind. Try displacing Coca-Cola, Pampers or WD-40 with a 5% discount. Good luck. Where is AI’s moat? Switching costs are near zero. I switch bw 4-6 models and already use 2 specialised AIs for commodities, each offering proprietary data and knowledge depth. If at all, I see opportunity for high ROICs in owning scarce, valuable info & domain expertise rather than another tech layer. But that is hardly the 10 trn-dollar TAM that spoiled Google & Meta executives want to present on their next earnings calls. They think unrealistically big, with precious little capital discipline. Instead of accepting that the regime change, rest assured that they will throw endless good money after bad. Like 100% sure! History offers zero comfort for that process. Look at the former kings of the S&P 500: AT&T, GM, DuPont, IBM, Exxon, Kodak, Sears, Xerox, GE, Philip Morris, Pfizer, Citigroup, Intel or PanAm. Some went bust, others lost dominance; few retained their extraordinary economics. Expect Google to join the decay list.

Bill Gates predicts a massive number of people will reject AI and choose to "live like the Amish."

WHAT THE HECK IS HAPPENING?? 🚨 Black October, a summary of the VERY concerning events so far... 👇 Countries Telling People to Prepare • Japan 🇯🇵: 3 days of food and water, ideally a week, plus portable toilets; formal request Nov 2 • UK 🇬🇧: "Be Ready" launched Oct 22; 3 days of supplies, citing weather and cyberattacks • EU 🏰: 72 hours of supplies for all citizens • Taiwan 🇹🇼: one week of essentials in a go-bag by the door • Sweden 🇸🇪: urging up to a week of supplies • Finland 🇫🇮: 72 hours of food, water, medicine; €70 to €100 cash per person • Ireland 🇮🇪: 2.2M prep booklets mailed to every home • France 🇫🇷, Netherlands 🇳🇱: 72-hour home kits • Germany 🇩🇪, Poland 🇵🇱: similar warnings Software Flaws • PHP bugs let hackers take over sites • Node.js flaws patched same day as PHP • Critical GitLab bug • Indian certificate firm's weak keys blocked by browsers Corporate and Health • AI-assisted hacks hit John Deere and others • Quest Diagnostics patient data exposed • New Mexico hospital ransomware halted surgeries • Ransomware group hit 600+ organizations • Capcom lost millions of accounts • Major retailer disrupted • California student data stolen • Crypto wallet key stolen; devices to be destroyed Japan • GMO hacked; data, money stolen, ransom demanded • Emergency cyber plans underway • Nikkei lost 1.83M records • SBI records on dark web • IDCF Cloud ransomware hit hundreds US Elections • Midterms next week • Hack attempt on the Federal Election Commission (FEC), the US campaign-finance agency; filing system taken offline • Trump: will accept only honest results • Fears of federal interference at polls • Possible Iranian threats • Low trust; voters fear chaos • Iran war and gas prices weigh on mood • Chaos could hit markets Nation-State • Iran threatens undersea cables • Russia-linked wiper attack in Ukraine • Tor exit nodes hijacked Supply Chain • Fake package stole passwords and keys • OVHcloud and other packages shipped malware • Rank Math WordPress update spread malware • Hundreds of online stores infected • Two coding sites leaked secrets and accounts • ConnectWise backup identities compromised

I have no idea what’s coming, if anything. But when a former Defense Intelligence Agency employee shares advice like this (on top of the announcements I’ve seen from other nations), I take note. Go buy more food, maybe. Because this is weird.

Not inaccurate