Madness and mayhem

Azeem says the past two weeks have been chaotic in tech, citing a correction in AI companies, the market shock of the Democrats' mid-term victory that gave the Nasdaq 100 its worst day since March 2020, and news that Jensen Huang has a relationship with a Chinese spy. He argues this is a flight to quality rather than a collapse: spending keeps rising, AI revenue reached $188bn in the twelve months to October and runs at $345bn a year, and Anthropic's growth falling to 45% a quarter puts it in line with the market. He expects Democrats to make data centers dearer, favoring hyperscalers, Nvidia and the open-weight camp to have their wings clipped, an Anthropic IPO at a sensible price to steady the sector, and neoclouds to be the weak link.