Welcome to the Inflection Point
About this episode
The episode discusses the economic implications of AI companies and their impact on the S&P 500 index.
I write this with reluctance because I know that I will receive hundreds of emails correcting me on a few niggling little details. But write on, I must. “Write on, write on, write on.” “Cost of Compute” refers to the $8 to $13 that every AI company has to spend on electricity and short-lived computer chips for every $1 that comes through the door. Losing a dozen dollars for every dollar you touch isn’t a problem when investors are showering you with cash from a fire hose. But it’s beginning to look like the well has run dry. I did not want to defend where I got my information, so I went to the Goog and asked, “Oh Great Googness, why are people referring to the S&P 500 as the “S&P 10”? Check this out, cub scout, straight from the AI of the Almighty Google: “The S&P 500 is being referred to as the “S&P 10″ because a handful of massive technology-related companies dominate the index’s performance. Due to market-cap weighting, these top 10 stocks disproportionately influence the index’s total return, making the ‘broad market’ performance heavily reliant on these few, AI-exposed companies. More than $40 of every $100 invested in the S&P 500 is going into just 10…
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