Sensible Speculation

CEO of Citadel Ken Griffin says that Data Center spend this year alone is set to be half a trillion dollars, $500 billion He says that AI is useful in some areas but it’s not worth the investment, he says a lot of what it produces “It’s all garbage” “Data center spent in the United States this year, over half a trillion dollars, like over $500 billion. You're not gonna generate this kind of spend unless you're gonna make a promise. You're gonna profoundly change the world. So is it hype? Of course — In certain areas, we know it's gonna be profound, whether it's call centers, whether it's helping to improve the productivity of software engineers, but in a number of white collar jobs, you know, there was a, there was a recent Harvard paper on this, they called it AI work Slop, that it looks good, but if you sort of peel back the onion, the substance isn't there. I was with one of my colleagues who runs our commodities business and they, he handed a report on that we were generated with an AI engine. Doesn't matter what the topic was, the first few sentences, like, wow, that's, that's really insightful. And then you go down below that and it's all garbage.”

On the Julia LaRoche show 1 week ago I predicted the next round of Private Credit redemption requests would be a multiple of the last one (which led to gating in some cases). Check out today’s headlines.

BREAKING: U.S. officials & Wall Street analysts are now reportedly preparing for the possibility of $200 oil.

We're seeing some serious market dislocation on inflation 🚨 1-year Treasury breakevens currently imply 5.2% inflation over the next year. But 1-year inflation swaps are showing just 3.2%. What gives? It comes down to how these two metrics are actually calculated. 🧵👇