More Tales From Nvidia: Some Deep AI Thoughts (Issue #235!)
Doug Kass
on
August 12, 2026
Operation bagholder:
Here's the real reason the A.I. boom is going to run out of capital. It's the same reason why rates are rising. And it's exactly why there's suddenly a mad scramble for capital in A.I. Equity values will fall as the cost of capital increases 20%-30%. But that's only the…
— Porter Stansberry (@porterstansb) August 11, 2026
They should NOT be letting them do this, if underwriting banks don’t want it on their own balance sheet that tells you something. That was whole point of the rule to begin with:
Regulators just gave the AI credit machine the same free pass that created the entire mortgage fraud bubble. On July 29, 2026 — the same day CoreWeave paid an extra 125 basis points to force its GPU-backed loan through — the SEC’s Office of Structured Finance sent a letter to…
— Porter Stansberry (@porterstansb) August 11, 2026
and…
🦔Apollo's chief economist Torsten Slok put hard numbers on something a lot of people have been circling for a while. AI's money runs backward, chipmakers booking huge profits while the model makers bleed, and the profits come from investors rather than customers. Chipmakers earn… pic.twitter.com/7sD18De9o1
— Hedgie (@HedgieMarkets) August 10, 2026
and…
🦔For years, tech executives promised AI would give people a four-day work week. A Google director predicted it by 2025. OpenAI told other companies to test shorter weeks at full pay. Now the BBC reports that the workers inside OpenAI, Anthropic, and Meta are pulling 70 to 90… pic.twitter.com/AwUfi5dbqE
— Hedgie (@HedgieMarkets) August 11, 2026
Positions: None.
- Category: Daily Diary
Posted by Doug Kass
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality. On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box." A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.