Richard Sowden

Bird Watcher

[zerohedge @zerohedge]

It appears hyperscaler creditors figured out they are lending our hundreds of billions over a decade plus to buy rapidly depreciating memory chips.

[Inverse Cramer @CramerTracker]

homeboy

[Dallas Morning News @dallasnews]

Texans fight 'explosive diarrhea' from gut-wrenching parasite https://t.co/zTGm5jzGc3

[Ricardo @Ric_RTP]

Palantir's CEO just exposed Sam Altman and Dario Amodei for robbing every Fortune 500 company.

Within two minutes, Alex Karp took the entire frontier AI industry apart on national television.

His exact words:

"Every single enterprise in this country, these people are LIVID. They are paying for tokens that create no value. These people are stealing the weights and alpha of my business."

He literally said the entire frontier AI business model is intellectual property extraction dressed up as a subscription.

Then he also destroyed the pricing model with a single question that Silicon Valley still refuses to answer:

"If it was so valuable, let's say I can make you $1 billion tomorrow. Wouldn't I say I'll make you $1 billion and I want 30 percent? Why are they charging for tokens if it's so valuable?"

That question breaks the industry.

If OpenAI and Anthropic's models truly delivered the productivity gains the labs claim, they would take equity or a share of the profit they generate. They would not sell access by the million tokens.

Token pricing is itself the CONFESSION that the product cannot produce reliable value at scale. If it did, they would price for the value. But they price for the compute because that is what they are actually selling.

Karp went even further...

He called the entire arrangement "a wealth tax that does not help the poor. It just punishes."

American businesses are transferring the alpha of their operations, meaning the workflows, the customer data, the strategy memos, the internal models that make them competitive, directly into the training pipelines of a handful of Silicon Valley labs. Once those labs retrain, the customer's own edge becomes the next enterprise product sold back to their competitors.

And the part the AI industry does not want anyone thinking about:

Every enterprise running its confidential documents, its customer conversations, and its financial models through a frontier model is potentially teaching that model HOW to replace them.

The vendor collects the token fee AND the compounding intelligence about that customer's business. That is the mechanism. And that is why Karp used the word "stealing."

He claims this is why every executive he meets is furious in private and silent in public. Nobody wants to be the CEO who called out the labs and then discovered their next competitor was built on their own leaked workflows.

The entire AI industry has been priced for perfection on one assumption:

That frontier labs produce durable, defensible value that justifies infinite compute spend.

But Karp just told us that the customers do not believe that assumption anymore. They believe they are being taxed without benefit, watched without consent, and copied without recourse.

The moment enterprises stop believing, the whole valuation stack shakes.

[Richard Sowden @rsowden]

No shit

[Reuters @Reuters]

The S&P 500 ended marginally lower, with a steep drop in AI-related chip stocks as investors' concerns grow that the massive spending to build AI data centers may take too long to pay off https://t.co/IffJLsV2M4

[Karl Smith, CFA (Level 1 Candidate) @wallstreetkarl]

Hear me out: CEO, COO, CFO

[Richard Sowden @rsowden]

RT @TruthGundlach: DOJ investigating odd stated NAV behavior of one the largest private credit funds.

Ever larger redemption requests acro…

[zerohedge @zerohedge]

Removing AI Spyware From Your Google Account https://t.co/pTqcOnHzg9

[David Ruff @dcarterruff]

Stumbling back to the house after the bars looking for a pledge to drive you to taco cabana

[Dave Portnoy @stoolpresidente]

You’re wearing a beret. Boom roasted.

[Richard Sowden @rsowden]

And you’ve never been known to over promise

[Elon Musk @elonmusk]

@JonErlichman I think SpaceX might be able to reach approximately $1T revenue in 2030

[Elon Musk @elonmusk]

@JessicaTetreau @RichardGrenell Yup

[litquidity @litcapital]

Who is gonna tell him????

[Karl Smith, CFA (Level 1 Candidate) @wallstreetkarl]

Fidelity waiting for me to sell my 1 SpaceX share so they can immediately ban me for life

[Richard Sowden @rsowden]

@REALMizkif @RobinhoodApp Maybe they realized you only had $1k in your account

[Spencer Pratt @spencerpratt]

Saving LA - Phase III

[Richard Sowden @rsowden]

It catches up with everyone eventually

[Joel Beall @JoelMBeall]

Exclusive: Phil Mickelson accused of nonconsensual, inappropriate contact with a female employee at his home course. Following the allegation, he is no longer a member of the club. Our Golf Digest investigation: https://t.co/9oUaElyErq

[Daniel @danielisdizzy]

Stanley Druckenmiller, who made extensive use of technical analysis throughout his career, says:

"I can unequivocally tell you that technical analysis is about 20% as effective today as it was 30 years ago, because no one was using it. But when everybody's using it, it doesn't work anymore because you don't have a unique thing to act against."

As Peter Lynch said many times, technical analysis is largely a waste of time. In the long run, stock prices follow the economic results of the business.

"If charts could really predict the future, technical analysts would all be billionaires."

Personally, I combine fundamental analysis with a bit of technical analysis to identify the best moments to buy aggressively and when to sell.

Stocks lose 50% or more of their value all the time "without reason."

That's when I pay the most attention.

Let's take advantage of those moments.

[Elon Musk @elonmusk]

The level of fraud here is mind-blowing