The AI Race Heats Up
Tuesday, November 4th, 2025
World News — Beijing is Subsidizing Domestic AI Companies
China is ramping up subsidies to cut electricity costs by up to 50% for major data centers operated by tech giants like ByteDance, Alibaba, and Tencent—but only if they use domestic chips from companies like Huawei and Cambricon. The initiative comes after tech companies complained about higher energy costs resulting from Beijing’s ban on Nvidia AI chips, since Chinese semiconductors are 30-50% less energy-efficient than Nvidia’s alternatives. Local governments in provinces like Gansu, Guizhou, and Inner Mongolia are offering these incentives to reduce electricity prices to roughly 5.6 cents per kWh, lower than the US average of 9.1 cents, as part of Beijing’s broader push to break dependence on foreign chips and strengthen China’s position in the global AI race.
Tech — AI Superstar Palantir Reported Record Earning (Again)
Palantir reported a 63% revenue surge to $1.18 billion in the third quarter and raised its annual revenue outlook to $4.4 billion, beating analyst estimates for the 21st consecutive quarter, yet shares fell about 3% in after-hours trading due to concerns over its sky-high valuation. The company’s stock had already soared more than 150% this year to a record $207.18, giving it a price-to-sales ratio of 85, the highest in the S&P 500, prompting analysts to warn that its valuation is “completely disengaged from fundamentals” despite exceptional growth. CEO Alex Karp acknowledged the company is in a “nosebleed zone” but celebrated the results as “arguably the best results that any software company has ever delivered,” driven by a 121% jump in US commercial sales and continued strong demand for its AI-powered data analytics software among both government agencies and corporate customers.
Business — OpenAI Amazon Deal (Another OpenAI Deal)
OpenAI has signed a massive $38 billion deal with Amazon Web Services to access cloud computing infrastructure and hundreds of thousands of Nvidia GPUs, marking a major shift away from its longtime exclusive reliance on Microsoft as its cloud provider. The agreement, which sent Amazon stock to a record high with a 4% gain on Monday, allows OpenAI to immediately begin running AI workloads on AWS through 2026 and beyond, while the company has also committed to purchasing an additional $250 billion in services from Microsoft Azure. This represents OpenAI’s latest move to diversify its infrastructure partnerships following deals with Oracle and Google earlier this year, as the $500 billion AI startup prepares for a potential IPO by demonstrating operational independence and securing long-term computing capacity across multiple cloud providers to support both its ChatGPT service and the training of next-generation AI models.
Culture — Gen Z, The Lonely Generation
Generation Z, America’s most diverse generation spanning ages 12 to 27, is united by profound anxieties about their future, with only 44% feeling prepared for what lies ahead and reporting the poorest mental health of any generation despite avoiding traditional teen pitfalls like high pregnancy and alcohol use rates. The collision of pandemic isolation during their formative years, excessive online socialization that lacks the mood-boosting brain chemistry of in-person connection, constant social comparison fueled by internet culture, and perceptions of an increasingly dangerous world—from active-shooter drills to climate anxiety to AI threatening job security—has left many struggling with loneliness, depression, and feelings of inadequacy while burdened by student debt and unaffordable housing.
Yet there are reasons for optimism: 70% are involved in social or political causes, their racial and ethnic diversity (just 52% white in the U.S.) brings fresh perspectives, and therapists note they’re remarkably emotionally conscious, intelligent, tolerant, and value-driven—qualities that, combined with their passion for activism amplified by social media platforms, position them to drive meaningful change despite the overwhelming challenges they face.
Song Recommendation — Let Alone the One You Loved
Chart of the Day
Quote of the Day
“Fiction is the truth inside the lie.”
― Stephen King