What we’re reading (2/21)
“Why AI Spending Isn’t Slowing Down” (Wall Street Journal). “Over the next couple of years, new innovations and more AI-specific microchips could mean systems that deliver AI to end customers become a thousand times more efficient than they are today, says Tomasz Tunguz, a venture capitalist and founder of Theory Ventures. The bet that investors and big tech companies are making, he adds, is that over the course of the coming decade, the amount of demand for AI models could go up by a factor of a trillion or more, thanks to reasoning models and rapid adoption.”
“Steve Cohen Says Tariffs And DOGE’s Cuts Are Negative For Economy, Market Correction Could Be Soon” (CNBC). “‘Tariffs cannot be positive, okay? I mean, it’s a tax,’ Cohen said Friday at the FII Priority Summit in Miami Beach, Florida. ‘On top of that, we have slowing immigration, which means the labor force will not grow as rapidly as … the last five years and so.’”
“What Does Jack Ma’s Return To The Spotlight Mean?” (BBC). “A meeting between Chinese president Xi Jinping and some of the country's foremost business leaders this week has fuelled excitement and speculation, after Alibaba founder Jack Ma was pictured at the event. The charismatic and colourful Mr Ma, who was one of China's most prominent businessmen, had withdrawn from public life after criticising China's financial sector in 2020.”
“Why Is Warren Buffett Hoarding So Much Cash?” (Wall Street Journal). “Holding lots of cash is standard practice for Berkshire, but the scale of the recent buildup has raised eyebrows among some observers of the Omaha, Neb., conglomerate.”
“Home Sales Drop Sharply As Prices Hit An All-Time High For January” (CNBC). “The U.S. housing market continues to weaken, as potential buyers face stubbornly high mortgage rates, elevated prices and limited supply of listings. Sales of previously owned homes fell 4.9% in January from the prior month to 4.08 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Analysts were expecting a 2.6% decline. Sales were 2% higher than January 2024, but are still running at a roughly 15-year low.”
