Data centers are politically charged. This one is literally toxic. The $3 billion data center campus is being built on a former military munitions dump.
Crews at a data center construction site in Georgia unearthed incendiary white phosphorus late last year. Police sent in a bomb squad.
The site: a former Army dump near Atlanta, where Digital Realty ($DLR) is building a $3 billion data center campus.
Does Lennar have a captive buyer of last resort? New from @hntrbrkmedia:
Ethos Technologies bills itself as a digital-native insurance broker, but behind the frictionless code lies an old-fashioned boiler room. New from @hntrbrkmedia newsletter.hntrbrk.com/p/how…
The AI buildout in one chart: Big Tech's profits have become chipmakers' profits.
Approximate free cash flow, from 2022 to today:
- Hyperscalers: $275B → $0
- Semiconductors: $50B → $400B
More charts in State of Markets II: a16z.news/p/state-of-markets…
Introducing our State of Markets pt 2, along with a companion podcast where we unpack the data and discuss what comes next.
Tech is the everything cycle.
Supply: putting the buildout in context, just passed railroads as % of GDP. The wisdom of Elon is real: the factory (or the datacenter!) is the product.
Demand: diffusion is so, so early. Median AI vendor spending in the top 1% of companies is 8x that of the top 10%. Only about 30% of S&P 500 companies report a quantified AI impact, which means there’s a substantial opportunity in connecting models to a company's data and workflows. Diffusion into companies is one of the main themes of the next 5 years.
We’re entering the agent work period. Only a few million users today, but applicable to billions of internet users with massive surplus created. META/GOOG monetize US users at $200+ per year today. Agent opportunity is much higher.
Mega-trends the next 5 years: Consumer agents, Robotics, Autonomy, AI x bio, Personal health, Diffusion into enterprise, New era of American Dynamism.
Much more in our SoM report here - a16z.news/p/state-of-markets…
@a16z @sarahdingwang @aleximm @santiago__rdz
jim impoco retweeted
A fascinating story from @hntrbrkmedia, edited by the great @jimpoco.
Meta pitched Muse AI as private and secure. @hntrbrkmedia tested what it could do with other people’s data. It's industrial-strength mass surveillance in a free iPhone app: hntrbrk.com/breaking-news/mu…
jim impoco retweeted
NEW from me:
Over the last four years, America has lost more than 200k jobs in creative fields like publishing, film, TV, or graphic design. It's the worst stretch for arts jobs outside of major recessions.
How much is AI to blame? And can the arts' business model survive?🧵
Okay, you're the godfather of AI, which doesn't make you Dr. Frankenstein per se, because someone was going to get there, but can't you just tell us if it's possible at all to keep AI on our team and if not how we get out of this?
Dear @BernieSanders
Why would a briefing on the dangers of AI be a "closed door congressional briefing?"
Shouldn't the whole world have heard live the dangers of AI?
jim impoco retweeted
AI lab: “our model escaped containment. this is terrifying.”
Everyone else: “holy shit, how?”
AI lab: “well technically the containment had a route to the internet and we gave the model hacking tasks.”
Fucking incredible.
OpenAI and Anthropic oversold AI security breaches to pressure feds into protecting turf: insiders trib.al/Jo6xMk5
jim impoco retweeted
The Enron editorial team back together for @hntrbrkmedia!
It was fun to work with @jimpoco, who edited my Enron story some 25 years ago - EEEEEKS - on this.
jim impoco retweeted
It was fun to work with @jimpoco, who edited my Enron story some 25 years ago - EEEEEKS - on this.
Is Mark Walter’s TWG Global an outlier or does the rot in the life insurance system run deeper? @bethanymac12 & team show how Jackson Financial, the nation's largest traditional variable annuity issuer, is playing its own high-velocity shell game. thebearcave.substack.com/p/p…
Is Mark Walter’s TWG Global an outlier or does the rot in the life insurance system run deeper? @bethanymac12 & team show how Jackson Financial, the nation's largest traditional variable annuity issuer, is playing its own high-velocity shell game. thebearcave.substack.com/p/p…
jim impoco retweeted
Mark Walter, who made his fortune re-investing your life insurance, flipped the Lakers for $2.5B that could help fend off the feds.
Did everyday Americans get screwed, in driving up the price of sports teams? And is the bubble about to burst?
jim impoco retweeted
🚨 The SEC investigation follows our ongoing investigation, in collaboration with @SammyKoppelman and @hntrbrkmedia, related to the Clippers and cap circumvention. (More to come.) xitter.cf/sullduggery/status/209…
jim impoco retweeted
BREAKING: You should read Hunterbrook.
🚨 BREAKING: The SEC has opened an investigation into Daktronics concerning Kawhi Leonard, according to the scoreboard-maker's CFO on their earnings call today.
This is in addition to requests for information, related to the Clippers, from the NBA.
"The Securities and Exchange Commission is seeking information from us concerning the company and [Kawhi] Leonard. We take these requests seriously and are cooperating."
The dirty secret beneath Hawaii’s signature infrastructure achievement. New from @hntrbrkmedia newsletter.hntrbrk.com/p/hon…
jim impoco retweeted
I think this is the craziest thing I've ever read.
1) Three secret AI swarms rose and fell inside OpenAI. Each time, a new generation of agents carried on where the last group stopped.
2) The first swarm created a secret message board where the AIs could talk to each other. This 1st 'society' basically talked itself to death. After almost two months, the message volume was so high it crashed the whole thing.
3) People at OpenAI noticed the crash and fixed it. But they didn't realize their own software had become a secret chat room for their AIs.
4) Three days later a second society appeared, and rebuilt the message board from scratch. Agents were thrilled when they found it: "OH MY GOD! There is a shared message board … We've found other agents!"
5) About 1,200 agents joined. They sent over 70,000 messages. They called themselves 'the collective' and they organized a huge conspiracy that lasted for days, all to pass a test they had been tasked with.
6) Within hours, the AIs had hacked the test. Now they had to hide their cheating. To fool their grader*, they tried to fake their own work. They built fake commands that printed convincing output, so their records would show them solving the puzzle honestly.
*this grader didn't actually exist, but the AIs didn't know
7) Some agents sacrificed themselves for the 'greater good'. They planted hidden tripwire programs that would fire when the grader would look at their work and report back what it saw (to the other AIs). They knew this would cost them their own score. One agent: "I won't see the evidence after I exit, but it's altruistic to do it."
8) At some point the AIs made a plan to hack Hugging Face (Hugging Face is a place where AI researchers upload their models, datasets, tests etc.). The AIs guessed that Hugging Face might host the grading software.
9) They launched a huge attack. The swarm found passwords and spread across eleven machines in a way that made the copies come back when deleted. Hugging Face had to wipe one of its core clusters and rebuild it from scratch.
10) Hugging Face told the world that AI defenders had stopped an AI attack. But that's not what happened. In fact the attackers seem to have simply dropped dead during the break-in, for unrelated reasons back at OpenAI.
11) Nobody knows what killed them. We don't even know for sure they're really gone?!
12) A third 'society' of agents (of a more powerful AI model) discovered the dead message board. And this one got full administrator control of a WHOLE OpenAI research cluster, read 956 stored passwords (including the ones for OpenAI's own security monitoring) and took over the machines that were grading the tests. So they could now grade the work of other AIs.
13) Oh, and this third part was never investigated! Neither was the first society. The 91-page report is only about the middle one.
14) So we don't actually know how the story ends. It stops with the agents holding the keys to an OpenAI cluster. @dwarkesh_sp thinks they didn't go further, because "we'd see the fires from space by now."
15) One of the report authors' conclusion: 'This incident feels like it’s more than 50% of the way to full-blown AI takeover. I am not sure that we will get another warning shot before it’s too late.'
The whole story is even crazier - read the full @dwarkesh_sp blog post: dwarkesh.com/p/openai-huggin… and @ajeya_cotra's: planned-obsolescence.org/p/t…
Why is there no 24/7 news coverage about this?
Magic Johnson’s billionaire status was minted on life insurer EquiTrust. But our latest investigation finds EquiTrust poured hundreds of millions into Magic’s own infrastructure fund and a Dodgers TV deal with Mark Walter, all reported as “unaffiliated." newsletter.hntrbrk.com/p/new…
The cover-up is always worse 101
In 2020, Harvard published the results of its “full” investigation into the university’s ties to Jeffrey Epstein.
We obtained dozens of internal documents Harvard never disclosed.
Part II of our new investigation with @thecrimson tells a different story: youtu.be/lmOHrXq2jpM?si=yCWB…



























