Brian Shilhavy

The financial news headline so far today is that job cuts in October were the worst the U.S. has seen in 22 years.

From CNBC (https://www.cnbc.com/2025/11/06/job-cuts-in-october-hit-highest-level-for-the-month-in-22-years-challenger-says.html):

Job cuts in October hit highest level for the month in 22 years, Challenger says

Job cuts for October totaled 153,074, a 183% surge from September and 175% higher than the same month a year ago. It was the highest level for any October since 2003 and has been the worst year for layoffs since 2009.

Companies in the technology sector announced 33,281 cuts, nearly six times the level in September.

“Like in 2003, a disruptive technology is changing the landscape,” said Andy Challenger, workplace expert and chief revenue officer at outplacement firm Challenger, Gray & Christmas.

Full article (https://www.cnbc.com/2025/11/06/job-cuts-in-october-hit-highest-level-for-the-month-in-22-years-challenger-says.html).

This is leading many people to believe that AI is doing the work that humans used to do. NOT TRUE!

These jobs are being cut because of SPENDING on AI, most notably for new Data Centers, is causing mass layoffs in technology jobs.

Here is what Microsoft CEO Satya Nadella said yesterday (https://www.thestreet.com/technology/microsoft-ceo-drops-blunt-truth-on-ai):

Microsoft (MSFT) CEO Satya Nadella didn’t mince words in his appearance on the Bg2 Pod with investor Brad Gerstner and OpenAI’s Sam Altman.

The tech leader made a startling admission that the biggest problem facing AI expansion right now isn’t chips — it’s power.

In what was a rare moment of candor, Nadella confessed that Microsoft has some of the most cutting-edge GPUs sitting idle because there’s basically nowhere to plug them in.

“I don’t have warm shells to plug into,” he said, referring to unfinished data center facilities that don’t have power or cooling capacity. It’s a stunning admission from arguably the world’s most resource-rich companies, and a potential reality check for the entire AI boom.

With industries across the globe racing to build smarter machines, it’s hitting a very human limit; there might not be enough electricity to keep the dream running.

Full article (https://www.thestreet.com/technology/microsoft-ceo-drops-blunt-truth-on-ai).

These rich mega Big Tech companies are now taking on DEBT to fund their lust for AI power, and they are ALREADY ASKING THE U.S. GOVERNMENT TO BAIL THEM OUT!!

From The Information (https://www.theinformation.com/articles/openai-cfo-said-uncle-sam-backstop-chip-financing-databricks-co-founder-responds-benchmark-critics):

It’s not every day one of the world’s most valuable companies asks the U.S. government for assistance, but these aren’t ordinary days. On Wednesday, OpenAI CFO Sarah Friar suggested at a Wall Street Journal event that the federal government ought to guarantee the financing of AI chips.

Come again?

“We’re looking for an ecosystem of banks, private equity, maybe even governmental, the ways governments can come to bear,” she said. “The backstop, the guarantee that allows the financing to happen. That can really drop the cost of the financing but also increase the loan-to-value, so the amount of debt you can take on top of an equity portion.”

She added that AI should be viewed as a “national strategic asset” and that the U.S. needed to be thoughtful in its race against China to “grow our AI ecosystem as fast as possible.”

This is red meat for the doomers of the AI capex explosion who think OpenAI may have dug too deep of a hole when it comes to spending commitments and is already asking for a bailout.

This is a company whose CEO says he wants to generate 250 gigawatts of power for his company’s AI by 2033, which would cost $12.5 trillion—that’s trillion with a T—in today’s prices. (Source (https://www.theinformation.com/articles/openai-cfo-said-uncle-sam-backstop-chip-financing-databricks-co-founder-responds-benchmark-critics).)

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