September 10, 2024

LOCKED Japan News Weekly Digest | 9/2 – 9/8

More content for you in an easily digestible format! The Japan News Weekly Digest is our weekly summary of the Japan Update. This piece encapsulates and references the Japan Updates published in the last week so you can easily understand what you may need to dig into. 

As a quick reminder, the Japan Update, our market commentary piece, is uniquely sourced from Japanese language publications. Published 10-15 times a month and written by Jeff Uscher, a Western educated and US located, fluent Japanese financial writer. You can always sign up to receive the Japan Update when it is initially published in your account notification settings. As always, please reach out with any questions or comments!

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LOCKED Bursting the AI Bubble

  • Raoul compares LLM to electricity producers with AI profits concentrated in the hyper-scalers
  • Yet the electricity analogy also suggests expectations of hyper-scaler earnings are unrealistic
  • Whereby AI isn’t a revenue source but the cost of continuing to dominate their core business
  • Hence the risk that as we saw in 2000 as the AI bubble pops it will drive the US into recession
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