Bubbles, Kitkats and Broadcom
It's all in the AI and Crypto Update
“We are seeing more pilots than Lufthansa,” - Klemens Hjartar, Senior Partner at McKinsey, talking today on stage at Nordic Fintech Week about Agentic AI. (Thank you Ewan MacLeod.)
AI has sped up the race to the bottom. No sooner has someone invented a Tony Robbins AI agent to coach you than someone else has put up a video on Tiktok showing you how to build it.
The barriers to building are now low. The barriers to sales are as high as they ever were.
I don't know if you've seen this too, but over the last two weeks, there's been a rise in the volume of content asking - “Are we in an AI bubble?”
The technology is there, but is the value?
The volume is there, but is demand?
Let me know what you think.
Now read some news.
California has passed a law requiring AI chatbots to clearly disclose when a user is talking to a machine, increasing compliance demands on AI firms.
OpenAI is teaming up with Broadcom to design custom AI chips, signaling its push to cut costs, reduce reliance on Nvidia, and lock in long-term control of its compute supply.
The high cost of cloud compute is killing margins, causing cloud vendors to rethink their models - or exit. (Paywall)
The cost of serving energy in the UK is double that of France, Simone Rossi, chief executive of EDF UK’s energy business said.
Consultancies must become more like IBM to to survive AI boom, says IBM, conveniently.
The US Office of the Comptroller of the Currency has given Erebor Bank conditional approval for a national charter. The crypto and tech-focused bank aims to fill the space left by the 2023 collapse of lenders like Silicon Valley Bank.
Global debt fears and US-China trade tensions are shaking markets as Bitcoin dropped 10%, showing crypto is sensitive to macro shocks.
