Everyone says they want AI adoption. Until metrics become the goal instead of the outcome.
Amazon employees are using AI agents to automate unnecessary work, by how AI usage is tracked through token consumption metrics, leaderboards, and adoption targets. This creates incentives to optimize for measured activity rather than real value, a classic case of people gaming whatever is being measured. As a result, employees focus on using AI—and being seen using it—rather than improving outcomes, leading to behaviors sometimes called “tokenmaxxing.” The situation mirrors past cases like vanity KPIs, meeting overload, and lines-of-code metrics. The key lesson is that AI adoption should be measured by business impact, not usage. Source: FT
Seems like another AI chipmaker IPO is on its way with Cerebras.
Source: Bloomberg
World's Largest Data Centers ▶️
Source: Mack
AI Memory Stocks Are Crushing the Market
The bottleneck is spreading across DRAM, NAND, SSD controllers, HDDs, advanced packaging, process control, server racks, and wafer fab equipment. Every layer of the stack is being repriced as AI workloads demand more bandwidth, more capacity, and faster data movement. Source: Sergey
This is such an important chart.
Where the cost of labor is cheaper, it doesn't make much sense yet to use AI. AI can probably augment some of the work, but replacing the human is just not cost effective. But this will probably not be the case forever. The simpler tasks will become cost effective from an AI perspective at some point, as AI models become more efficient. Source: Ayesha Tariq, CFA
Wall Street projects hyperscalers’ free cash flow to fall by over 70% from its peak by the end of 2026, even as earnings keep climbing
Source: Christophe Barraud, Bloomberg
Goldman: On the back of 3 large data center and hyperscaler transactions over the past week+ April IG supply finished at $205 bn, nearly doubling the informal street estimate (~$110bn).
This took IG supply over the past 12mo to new highs at ~$2trn (~20% of outstanding IG bonds), pari with peak Covid. Source: Neil Sethi
At 858 days since ChatGPT's release, the Nasdaq is currently up 129%.
858 days after Netscape's release, the Nasdaq was up 155%. "History doesn’t repeat itself, but it still rhymes. If this chart has any merit we might only be in the middle innings of this buildout." - Bespoke Source: Negligible Capital
