Premium Newsletter: AI data centers are low-margin, high-capex time bombs with low gross margins possible only in perfect circumstances, fueled by junk-grade debt. Without $100bn+ in new, non-hyperscaler demand by 2028, the majority of these loans go unpaid. www.wheresyoured.at/data-center-...

Here’s this week’s Better Offline monologue. I walk you through why Matt Shumer’s “Something Big Is Coming” is deceptive misinformation peddled by a grifter, and why everybody who boosted or republished it should be ashamed of themselves. podcasts.apple.com/us/podcast/b... Linktr.ee/betteroffline

M&Ms CEO: 'most, if not all' meals can be replaced by M&Ms within 12-18 months

Yep. NVIDIA makes tons of profit, along with RAM/storage. ODMs (server manufacturers) make a smidge of profit. data center colocation companies make slim profits years and years and years later. AI compute providers basically never make a profit. AI labs/startups lose money forever

I joined the Times Tech Report to talk about how AI data centers are the next financial crisis. Their massive up-front costs and burdensome debt require perfection - constant tenancy and no missed payments - and capacity is being built for demand that doesn't exist. youtu.be/iG8kjXN550o?...

To write this, I built a data center model from scratch in discussion with numerous analysts and experts. It's available to subscribers today. The results were damning. Every data center I modeled can only financially survive with 100% tenancy at all times. www.wheresyoured.at/data-center-...

Premium Newsletter: AI data centers are low-margin, high-capex time bombs with low gross margins possible only in perfect circumstances, fueled by junk-grade debt. Without $100bn+ in new, non-hyperscaler demand by 2028, the majority of these loans go unpaid. www.wheresyoured.at/data-center-...

Here’s the annotated version of the post. Every single media outlet that has platformed Matt Shumer has failed their audience and embarrassed themselves. It proves that many outlets simply don’t know what they’re talking about. www.dropbox.com/scl/fi/qw6k5...

Meta becoming one of Corning's largest customer and getting a weird warning from its auditor...Amazon hitting lows unseen since the 2000s...NVIDIA leasing 200MW of data center capacity from a company raising junk bonds to buy NVIDIA GPUs...

Once the AI bubble bursts I am turning my attention to Meta. I have a whole chapter in my book about how nakedly evil they are. Recommend @jeffhorwitz.bsky.social's Broken Code, the best book on the company by a country mile www.penguinrandomhouse.com/books/712678...

That's right! Every single "AI tried to deceive us" story is entirely a result of directly training the models to respond in a certain way to create this specific reaction. This era stinks www.wheresyoured.at/ai-mythbuste...

Have never, ever seen anyone, let alone the Chief Investment Strategist at Bank of America, talk about the potential for hyperscalers to cut capex. Reciting the Fire Walk With Me poem as the Smiling Man appears on every screen at the NASDAQ m.investing.com/news/stock-m...

Had this song on repeat all week, it's so good www.youtube.com/watch?v=MqXV...

Got sent some video from Twitter and I can’t stop laughing at how much this guy looks like Windom Earle from Twin Peaks

Mogged by the lord

𝙎𝙃𝙐𝙏 𝘿𝘼 𝙁𝙐𝘾𝙆 𝙐𝙋

Tomorrow's Premium: The Great Data Center Financial Crisis, where 20-40% margins are only possible after years of construction and billions in debt, and if we don't have $100bn in demand by 2028, everything's a wash. Here's $10 off annual. edzitronswheresyouredatghostio.outpost.pub/public/promo...

I don’t think I’ve ever been angrier reading anything on the show. Something about seeing this really got to me, it’s shown how many people are misinformed and, worse still, how many more are willing to emphatically agree and endorse nonsensical misinformation. A moment of shame for all involved.

Here’s this week’s Better Offline monologue. I walk you through why Matt Shumer’s “Something Big Is Coming” is deceptive misinformation peddled by a grifter, and why everybody who boosted or republished it should be ashamed of themselves. podcasts.apple.com/us/podcast/b... Linktr.ee/betteroffline

To write this newsletter, and to back up future reporting, I created my own model for data center costs, one I validated with multiple experts and analysts. AI data centers are awful businesses, and I'm very worried about what happens next. edzitronswheresyouredatghostio.outpost.pub/public/promo...

suing the james bond corporation

Tomorrow's Premium: The Great Data Center Financial Crisis, where 20-40% margins are only possible after years of construction and billions in debt, and if we don't have $100bn in demand by 2028, everything's a wash. Here's $10 off annual. edzitronswheresyouredatghostio.outpost.pub/public/promo...

Made an annotated version of "Something Big Is Coming" for all of you to enjoy. I hate this guy's writing so much www.dropbox.com/scl/fi/qw6k5...

$30bn raised from a *telethon* of investors. This is insane. Never seen anything like it in my life. Anthropic is scraping every barrel dry, and guess what? This barely covers the $21 billion in orders it has with Broadcom, let alone the projected $12bn in training costs this year

Found a nuanced way to explain the rickety finances of data center development

Keep being sent this completely nonsensical hogslop. It has multiple egregious lies, which is appropriate because he’s a fraud. Back in September 2024 he falsified a bunch of benchmarks to hype up his open source model. Article is total dogshit. I should annotate it venturebeat.com/ai/reflectio...

NEW: Your average prediction market user can soon bet on the popularity of trends, brands, concepts and ideas. Everything is becoming increasingly monetized and financialized. VCs are eating it up. www.inc.com/sam-blum/pre...

I thought about doing a longer newsletter about this but I am fairly certain everyone will forget about this in a week

Made an annotated version of "Something Big Is Coming" for all of you to enjoy. I hate this guy's writing so much www.dropbox.com/scl/fi/qw6k5...

Mysterious! I thought Clamuel said they were “way over $13 billion.” No need to mention this I guess

Here’s this week’s Better Offline. Hater season continues, and I’m joined by Cal Newport to talk about the ways in which the media fails to report the truth about AI. podcasts.apple.com/us/podcast/b... Linktr.ee/betteroffline

Keep being sent this completely nonsensical hogslop. It has multiple egregious lies, which is appropriate because he’s a fraud. Back in September 2024 he falsified a bunch of benchmarks to hype up his open source model. Article is total dogshit. I should annotate it venturebeat.com/ai/reflectio...

What a nice thing to say! It also means absolutely nothing. Anthropic doesn’t own or even lease data centers and thus does not pay power bills on anything other than its office space

My “Oracle’s construction progress across our AI data centers remains on schedule and on plan” t-shirt is getting me a lot of questions answered by the shirt

Microsoft, Google, Meta and Amazon paying influencers $400k-$600k to post months of AI hype content. Absolutely busted, failed industry, embarrassing era www.cnbc.com/2026/02/06/g...

Free for four more days. Twenty five reviews. 4.9 stars. www.amazon.com/Everybody-Ha...

So that's the magic of everybody talking about 1GW data centers - this is a very new concept! they are all working it out as they go along.

Here’s this week’s Better Offline. Hater season continues, and I’m joined by Cal Newport to talk about the ways in which the media fails to report the truth about AI. podcasts.apple.com/us/podcast/b... Linktr.ee/betteroffline

?

This makes no sense. People need to stop assuming there’s a huge genius strategy behind this. It’s effectively obeying in advance, it empowers evil people with intelligence and guile they lack. They’re doing this because number went up. GPUs are not helpful in that way.

the last two days have been endless dicking around with spreadsheets but i think i've reached an actual defensible model for modeling data center costs, and even in a perfect situation these things have mediocre (30-40%) gross margins when they have a tenant and negative ones without

Premium Newsletter: The Hater's Guide to Microsoft, a decaying empire experiencing the stagnation of all of its core products that's using OpenAI's billions in inference spend to cover up the collapse of Azure's growth. It makes no more than $15bn a year from AI. www.wheresyoured.at/premium-the-...

I wrote about Jason Myers, who delivered my favorite postgame quote and was perfect in the Super Bowl, and who makes it to the top in the strangest job in sports. defector.com/jason-myers-...

So sick. I love it. Business

it offended me. how dare he buy a soda during the super bowl? how dare he? he also broke the roof of a hard working family and didn't even apologize! he even seemed happy!

chatgpt has been at 800m+ weekly actives since october. gotta wonder if they stalled out or are just saving for 1bn. but it's been a while! Took from August to october 2025 to go from 700m to 800m for example

In England they call him Naughty Rabbit

It’s time to post this. Confirmed. Sam Darnold is a Super Bowl Champion. ilovecitr.us/darnold/