Why the Market’s Still Obsessed With AI

May 16, 2025 • 1 minute, 3 second read

Make no mistake: The stock market peaked in February, following the news that China had released a new AI program.

DeepSeek isn’t just a ChatGPT clone. According to China, it was able to train the AI with substantially fewer resources.

That’s a huge breakthrough. And a sign of a global “Cold War” in AI development.

That potential escalation still looks some time off. For now, investors love AI because it’s a pure growth story, by any metric.

For instance, ChatGPT’s total users now exceed those of Wikipedia:

Turn Your Images On

I remember when Wikipedia first launched. Several of my college professors said it shouldn’t be used as it wasn’t reliable. I also remember going on Wikipedia, ignoring the article, and going straight to the footnotes that could be used and were reliable.

Today, AI models are best used similarly: to get the creative juices flowing and to run through some ideas, not do all the work and turn down the human capacity to think.

Be mindful, though. As the saying goes, today is the worst AI will ever be.

Times and technology change, and ChatGPT’s rise shows that its fast growth comes at the cost of disrupting other industries – and that there’s more growth ahead.

-Andrew

Ripple Effect

Why the Market’s Still Obsessed With AI

Andrew Packer

May 16, 2025 • 1 minute, 3 second read

Make no mistake: The stock market peaked in February, following the news that China had released a new AI program.

DeepSeek isn’t just a ChatGPT clone. According to China, it was able to train the AI with substantially fewer resources.

That’s a huge breakthrough. And a sign of a global “Cold War” in AI development.

That potential escalation still looks some time off. For now, investors love AI because it’s a pure growth story, by any metric.

For instance, ChatGPT’s total users now exceed those of Wikipedia:

Turn Your Images On

Today, AI models are best used similarly: to get the creative juices flowing and to run through some ideas, not do all the work and turn down the human capacity to think.

Be mindful, though. As the saying goes, today is the worst AI will ever be.

Times and technology change, and ChatGPT’s rise shows that its fast growth comes at the cost of disrupting other industries – and that there’s more growth ahead.

-Andrew

1998, Redux

October 31, 2025 • Addison Wiggin

In his press conference after lowering interest rates a quarter point this week, Federal Reserve Chairman Jerome Powell laid out the case that the AI boom was nothing like the dotcom bubble.

There’s just one problem. The market is following the dotcom boom nearly perfectly – with 2025 following closely to 1998.

Socialism Whacked

October 30, 2025 • Bill Bonner

Milei, meanwhile, is doing something different. He’s cutting budgets, trimming employees, and chopping off unnecessary bureaucratic appendages. He’s been in office for a little shy of two years. During that time, he’s reduced inflation by about 90% and cut the budget deficit by 100%. Argentina has climbed out of its almost permanent recession to have the fastest growing economy in the Americas, with GDP growth more than twice that of the US. Real wages have tripled. And poverty has been cut by 40%.

This One Goes To Twelve

October 30, 2025 • Addison Wiggin

Donald Trump wrapped his Asia trip with what he called an “amazing” meeting with Xi Jinping at a military base in Busan, South Korea. The two men smiled for cameras, shook hands, and carved out a fragile truce in the ongoing trade war.

On Air Force One, Trump tried to outdo the 80s cult classic mockumentary Spinal Tap, suggesting on the scale of one to the talks were a “12.”

On a practical level, Trump announced that tariffs on Chinese goods linked to fentanyl production would be halved — from 20% to 10% — bringing the overall rate to 47% from 57%.

China, in turn, agreed to a one-year suspension of some rare-earth export controls, though it kept licensing restrictions on seven key minerals used in U.S. manufacturing.

Powell Cools Talk of December Rate Cut

October 30, 2025 • Addison Wiggin

Yesterday’s Fed meeting offered something for everyone.

For bullish investors, the quarter-point rate cut provided a clear signal. And the Fed is just about done with its quantitative tightening.

But for the bears, Powell doused expectations that a December rate cut was 100% on the table.

1998, Redux

October 31, 2025 • Addison Wiggin

In his press conference after lowering interest rates a quarter point this week, Federal Reserve Chairman Jerome Powell laid out the case that the AI boom was nothing like the dotcom bubble.

There’s just one problem. The market is following the dotcom boom nearly perfectly – with 2025 following closely to 1998.

Socialism Whacked

October 30, 2025 • Bill Bonner

This One Goes To Twelve

October 30, 2025 • Addison Wiggin

On Air Force One, Trump tried to outdo the 80s cult classic mockumentary Spinal Tap, suggesting on the scale of one to the talks were a “12.”

On a practical level, Trump announced that tariffs on Chinese goods linked to fentanyl production would be halved — from 20% to 10% — bringing the overall rate to 47% from 57%.

China, in turn, agreed to a one-year suspension of some rare-earth export controls, though it kept licensing restrictions on seven key minerals used in U.S. manufacturing.

Powell Cools Talk of December Rate Cut

October 30, 2025 • Addison Wiggin

Yesterday’s Fed meeting offered something for everyone.

For bullish investors, the quarter-point rate cut provided a clear signal. And the Fed is just about done with its quantitative tightening.

But for the bears, Powell doused expectations that a December rate cut was 100% on the table.