📊 By 2027, just 5 companies, Alphabet, Amazon, Meta, Microsoft, and Oracle, are expected to spend around 3.2% of US GDP on AI capital expenditure.

That would put private AI infrastructure spending above US national defense spending, which is expected to be around 2.7% of GDP.

The AI race is now being funded at a scale normally associated with governments, wars, energy systems, railroads, highways, and telecom buildouts. The striking part is the speed. AI capex is expected to jump from about 1.5% of GDP in 2025 to about 2.5% in 2026, then to 3.2% in 2027.

AI boom is now large enough to influence the broader US economy significantly, it can move GDP growth, electricity demand, chip supply, construction activity, corporate debt markets, and ofcourse the labor market.

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Performance review, 2027:

“Your AI agents have exceeded expectations. Unfortunately, they no longer require your supervision.” 🎧

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🔥Hyundai Motor showcases its Atlas humanoid robot at the 2026 World Cup, with plans to manufacture 30,000 units annually in the US starting 2028.

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Fable turned a remarkable into Tom Riddle's diary from Harry Potter.

The prompts fade, a LLM respond.

Amazing!

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Even Sam Altman is confused by how education hasn't significantly changed at all since ChatGPT came out:

"if we continue to teach students as if we were in a pre-AGI world, it's gonna lead to an atrophy of critical thinking."

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🔍 Google just lost some of its biggest AI stars in the span of a week.

And investors noticed. The company shed $269 billion in market value.

It began on June 18, when Noam Shazeer left for OpenAI. He’s one of the co-authors of the 2017 “Attention Is All You Need” paper, the breakthrough that made today’s large language models possible.

Just two days later, John Jumper joined Anthropic. Jumper won the 2024 Nobel Prize in Chemistry for leading the development of AlphaFold, the AI system that solved one of biology’s biggest challenges by predicting the structures of nearly every known protein.

Then came more departures.

Jonas Adler, who led Google’s AI coding efforts, and Alexander Pritzel, a key expert in large-scale AI pretraining, both left for Anthropic. Both also played major roles in AlphaFold.

Even Arthur Conmy, an AI safety researcher, made the jump, saying he wanted to work where AI safety was a bigger priority.

The timing couldn’t be more striking.

Google is expected to pour around $190 billion into AI infrastructure this year. But GPUs and data centers don’t invent breakthroughs, people do. The engineers who built Google’s advantage are increasingly choosing to build somewhere else.

In AI, talent compounds faster than hardware.

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❗️ Peter Thiel: "There's only one company making money in the AI boom, that's Nvidia. Everybody else is losing money."

And it all traces back to one stupid decision in 1993.

"You should not be asking this question about meta or openai or any of these things. You should really be focusing on the Nvidia question, the chips question"

"Nvidia got started in 1993. That was the last year where anybody in their right mind would have studied electrical engineering over computer science"

"94, Netscape takes off. It's probably a really bad idea to start a semiconductor company even in '93"

"But the benefit is there was going to be no one would come after you. No talented people started semiconductor companies after 1993 because they all went into software"

"Their monopoly power, I think it's quite strong because of this history I just gave you, where none of us know anything about chips"

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📈 AI isn’t replacing creativity, it’s flooding the world with it.

A new analysis from The Economist reveals that since ChatGPT launched, generative AI has dramatically increased the amount of content being created across almost every major creative industry.

Books, music, software, scientific papers, and even legal documents are now being produced at a pace that would have been difficult to imagine just a few years ago. Amazon has seen a surge in AI-written e-books, music platforms are receiving tens of thousands of AI-generated songs every day, developers are shipping code faster with AI copilots, researchers are publishing more papers, and lawyers are using AI to draft documents in minutes instead of hours.

The result is a world where producing content is becoming incredibly cheap and incredibly fast.

But there’s a catch.

As AI removes the cost of creation, it also creates an overwhelming flood of information. Every day, the internet fills with more articles, videos, songs, apps, and documents than any person could ever consume. The challenge is no longer making content, it’s deciding what’s worth paying attention to.

Ironically, AI may not create a shortage of creativity. It may create a shortage of attention.

Source.

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Looks like robots won’t be replacing soccer players any time soon…

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🖥 Microsoft is laying off another 4,800 employees as its massive AI ambitions reshape the company.

The cuts affect about 2.1% of Microsoft’s workforce, hitting commercial operations and the Xbox division. Microsoft says these jobs aren’t being replaced directly by AI but the company’s enormous AI spending is clearly driving the pressure.

Azure continues to grow rapidly, yet building the infrastructure to power AI is becoming incredibly expensive. Microsoft now expects to spend $190 billion in 2026, a figure that shocked analysts and highlights just how costly the AI race has become.

Xbox is feeling the squeeze too. Hardware costs have climbed, console demand has cooled, and even heavier investment in games hasn’t delivered the revenue boost Microsoft hoped for. Reports suggest Xbox operating margins are hovering around 3%.

Source.

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