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BBC says "tech's seedy side exposed" by Musk- Altman trial 2026. Let's face it there is a seedy side, and a much less benevolent side to Tech than it likes to show. The overspending on AI is a sign of misplaced priorities when so much of US infrastructure is dilapidated, much of it from before 1945, that badly needs to be rebuilt. Much of the promise of hardware from Tech that would change education is a failure so much so that Sweden is shifting on a nationwide effort in its schools to a program - "from screens to binders" that gives children binders with notebooks to write in and books to read, removing screens altogether, and for good reasons of the educators of Sweden. Tech in its grandiose style pretends it is about the technological revolution when it is simply the companies Amazon, Google, Apple, Microsoft, Nvidia, three of which are from the last 15 years. The technological revolution and the scientific revolution date back to Copernicus and Newton and the hundreds, thousands of scientists and pioneers of the industrial revolution of the last 250 years, and the men of vision and wisdom that gave us the British and American Constitution, the principles of self-government of civilized societies. ...

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Jensen Huang founded Nvidia to develop chips for videogames in 3D graphics in 1993. Sega videogame maker in Japan had Nvidia develop the chips for its Dreamcast player. At the time Shoichiro Iramijiri was the engineer -who started Honda's first manufacturing plant in the US in 1984- heading Sega. Iramijiri liked Huang and wanted him to succeed. When the technical error of developing the chips using a wrong shape was made by Huang Nvidia was dropped by Sega for Dreamcast in 1997. Nvidia ran out of money and if it persisted with its poor design would have ended in 6 months. Instead Huang decided to switch to a new chip design with no money to do this. Iramijiri stepped in to get Huang a $5 million loan from Sega.

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Surges in capital value can be wildly misleading. Nvidia a rapid computing company propelled in stock value. From the growth of crypto currency that led to losses and was perceived as a danger to the financial system by central banks and governments. This is happening when capital investment is a dire need in education and schools, good teachers and good classrooms, when only a third of American students pass NAEP tests on reading comprehension. Today's capital allocation system was never designed to accomplish this even as it sends hundreds of billions of dollars in one single day to a single company. Nvidia is now seeing a surge from chatbots computing coming out of ChatGPT,  leading to $184 billion change in its market value on May 25, 2023.  Nvidia was mostly a graphics processing company setup to make graphics on PC's look better. In 2006 Jensen Huang made the decision to open it up to developers to tinker with it and develop more computing capabilities. This has led to Nvidia designing much more powerful computing chips that perform thousands of calculations at the same time.   Nvidia designs the chips and sends production out to Taiwan Semiconductor Manufacturing. Suddenly Nvidia sees its share price surge and it joins companies such as Apple, Amazon, Microsoft, and Tesla that have seen one day surge in the value of the companies by over $100 billion shown in this WSJ graph by date. Huang says he thinks that this is the beginning of a ten year period in which companies will redo their data centers to build them up with AI computing capabilities. WSJ also says China's top nuclear weapons research institute has bought these advanced chips even though it is on a US export blacklist since 1997. In 2022 the Biden administration imposed new licensing requirements on export of the most advanced chips. Since then Nvidia is following specifications for chips that allow it to export to China, says the WSJ.     ...

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Planned restrictions on the export of Nvidia A800 chips to China is a signal from the Biden administration to chip companies to stop circumventing the export restrictions, says this report in WSJ. These restrictions may include cloud services too. A800 chips have the same computing power as the A100 which are already restricted for export, but have a lower bandwith for communicating with other chips.

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Nvidia's Head of Engineering, Jonah Alben, is from Schenectady, upstate New York. Here he is credited with exporting the latest US advanced chips to China by reducing their effectiveness. US administrations Biden's and DJT's say this pushes the rules of export controls. It also undermines the US lead in advanced technologies needed for the US to keep the peace in the Pacific and in Europe as new tensions emerge over Taiwan and in Eastern Europe. For years the US egregiously restricted the flow of technologies to democracies such as India and allowed a concentration of semiconductor manufacture in Taiwan, over concentration of manufacturing in China, both of which led to supply chain issues in recent years and pose supply chain issues in the future. Ironically restrictions on technologies sale to India which with 1.4 billon people, and a similar culture in Indonesia forms homogenous culture of 1.7 billion people, is the only place of this size where parliamentary democracy has taken root. With an exercise of legislative assemblies through elections in all Indian states in the 1930's under the British with Mohandas Gandhi's leadership and example. Because of Gandhi and the leaders who preceded him Dadabhai Naoroji and Vivekananda in the 1890's India has older democratic forms than Germany, Japan, Italy, Spain and most of Europe, all of Asia, Latin America and Africa. It also has among the ordinary people a deep respect for Lincon, FDR and his fight to help Gandhi with Sukarno fight the British and Dutch Empires to bring freedom to 1.7 billion people.  ...

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Nvidia moves from 5 billion in profit 2022 to $120 billion in 2025 with AI Chips.

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With strong US growth Nvidia data center sales sales are up to $39 billion up 73% in mid 2025. After taking a $4.5 billion charge on chips designed for China after US government stopped sales to China of sensitive technologies Nvidia is doing very well. This is the result of the rapid growth in AI investments in the US being made by Nvidia, Microsoft, Amazon, Apple and other companies. During DJT's visit to Saudi Arabia he signed agreements that allow US exports of AI chips to Saudis in exchange for $1 trillion in investments in the US in AI infrastructure. A Biden Diffusion rule had blocked such sales to allies.

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Dell's donation of $750 million to UT Austin, $100 million donation for University of Wisconsin, and $200 million donation by an alumnus of University of Southern California who as a stake in Nvidia- all these donations go to hiring AI faculty and setting AI as the goal for school of computing. USC plans to cover many fields for AI within the university.

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Can OpenAI pay? Does it have $300 billion? These are the questions analysts are asking. Remaining Performance Obligations is RPO's which refer to a company meeting probable targets which are not certain. Oracle stock went up 36% in one day because it was saying it would get thei $300 billion from OpenAI. Now as analysts look carefully at Oracle surge they are saying wait a minute who has this $300 billion. This report in the WSJ says RPO's for Oracle are now up to $523 billion. Oracle stock is now down 43%. Analysts are questioning these outlandish claims. Another claim is from the "circularity" in the AI sector, which means A is connected to B is connected to C. OpenAI expects $100 billion in investment from Nvidia which makes advanced chips, but is it definite? Nvidia says in it's latest quarterly report that "there is no assurance that any investment will be completed, on expected terms, it at all." Note that OpenAI makes hardly any money today and is in fundraising stage- it has expectation to make $20 billion. And the $300 billion where does all this come from? When most people in the Nation are living from paycheck to paycheck there is this wild speculation and mania in the AI sector.   ...

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Top 5 Things emails from junior and senior employees, from 30,000 employees of Nvidia, is how Jensen Huang stays on top of strategic direction for the AI company. Sunday night he gets such emails which tell about what is important to junior emplopyees that can geve Huang a feel for what is happening outside. He does not pay much attention to strategy meetings, tries to work in conference rooms with his ever present favorite marker. Jensen Huang is unlike anything seen in America's tech companies. 

Amazon's Jeff Bezos does not like tech presentations, he prefers a one page writeup that requires writing skills. Huang prefers emails that say briefly what junior employees are thinking.

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Chip performance that doubles every two years is now the norm. Costs decline proportionately. Of more concern today is investment that pulls educational levels up in schools at even a small fraction of that speed and this investment has sorely been lacking. Investment in infrastructure, in education, in health, in public services that improve the quality of life have declined with the obsession with technology that is showing poor results when it comes to education of children in schools from elementary to secondary to higher secondary schooling.

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Apple, Caterpillar, and Microsoft, Amex pushed the Dow higher to get to 50,000 from 25,000 in 2018 in just 9 years when it took decades to get to 25,000. Sales Force, because of AI threat, Boeing because of its engineering and quality issues acted as laggard. Exxon was removed, Chevron stayed on. Intel was taken out and Nvidia took its place. The PE ratio in 2026 for Dow is 22 times earnings. Companies with higher stock price Goldman $929 a share as an example have a bigger impact in moves of the Dow just because of the higher price per share. Compared to Apple at $249 a share. The calculation is to take the price s of 30 stocks add them together and divide by a factor that adds effect of stock splits and new index entrants. That factor was 0.162 in 2025. Note that it took 76 years to 1972 to get to 1000 for the Dow Jones Average in 1972.

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US stock markets reflect AI capital misallocation fears, with NASDAQ down 2.2%, S&P 500 down 1.56% on November 20 2025, after NVIDIA results are announced. NVIDIA down 3%. Lyrarc articles this week showed major AI capital misallocation fears. This is a positive sign that the market is taking this into account so that financial exchanges operate correctly, reward good investments and downgrade bad ones with excessive risk.

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This story by Asa Fitch of the WSJ shows how NVIDIA co-founder Jensen Huang, built NVIDIA into a major semiconductor company. He did this by developing faster chips for graphics and other uses using parallel processing instead of sequential processing. It is now a rival to Intel as it plans an acquisition of ARM Holdings in Britain. Huang started NVIDIA in 1993 when computer users wanted faster computer graphics.  NVIDIA has about $10 billion in sales compared to larger rival Ital with $72 billion in sales. With its efforts in AI and other tech fields NVIDIA now surpasses Intel in valuation. Softbank bought ARM Holdings in 2016 for $32 billion. It is now looking to sell ARM to NVIDIA or another buyer. Problems it faces in the acquisition is British laws that may decide to prevent approval for sale of the company and the loss of jobs. ARM based in Cambridge has 6700 employees. ARM makes the chips for smartphones. The trade war between the U.S. and China and the sale of ARM chips to Huawei are also factors that will be considered in British approval or disapproval of this sale of a British company owned by Softbank of Japan.  ...