AI Valuation in an Echo-chamber

It's worh asking...

The European Commission is considering whether or not those Google AI-generated summaries breach anti-trust laws by using web and YouTube content without payment. Google, of course, says that the commission is “stifling innovation.” There is no reason both can’t be right. Still, that the question keep getting asked outside the United States is problematic for Big Tech.

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4717 Shot: Big Tech’s domination of damned near everything is largely based on the fatalistic resignation by the dominated that the sector is above intellectual property, copyright and liable laws… in the name of “innovation.” While US courts seem inclined to side with Big Tech on “fair use” with politicians and retirement portfolios in tow, that influence may not scale globally as Washington’s soft power evaporates. Australia has recently implemented a social media ban on under 16s, and similar moves are being considered in the EU, Brazil and across Asia.

The blowback to the Trump administration’s jettisoning of allies is, then, that you lose allies. That US-led order, it’s free sea-lanes and security umbrella wielded a lot of influence on free trade that is falling away in a decoupled world. A profitable relationship generally involves several complementary aspects, so wrecking one can often wreck the whole thing.

For the investor eye-balling the Mag 7 in his index fund, remember that the sector’s valuations and profits are on a global, not national scale. AI Large language Models (LLM) are really just brilliant echo-chambers, without the ability to hoover up everyones voices, it loses its own.