Livestreamed Executions, Wall Street AI Panic, and the War for Worker Power | The Tom Bilyeu Show

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The AI bubble, man, it grows more unstable. By the day, a single open AI misstep just cost the markets over $300 billion and a data center IPO went from potentially record setting to non-existent as investors flinch. America rediscovers its medieval roots as Hegseth commits to live streaming an upcoming execution. The Iranian media manipulation story is getting crazy. Open AI just confirmed that Iranian operatives have been using AI to manipulate the US media. We're going to talk about that. The Mamdani backlash is getting insane as police had to physically restrain pro-Palestinian protesters who are mad as hell at the governor. The Trump admin is doing something pretty shocking to support American workers that could have massive ramifications.

And the Unabomber, was he right? He's haunting us all from the grave. He tried to warn us, we didn't listen, and now mathematicians are lashing out at AI. The Palmer Luckey desire to drug us all into staying in love is wild, but also kind of brilliant. And the Marco Rubio saga continues to get more incredible. This man can't be stopped. He had a recent viral speech that we have got to discuss. All of that and more today on the Tom Bilyeu Show Live. Welcome everybody.

Okay, the AI bubble, man. It grows more unstable by the day.

OpenAI did a wee bit of a misstep, and it just cost the markets over $300 billion. And the data center IPO that was going to be record setting in Australia is now, they pulled back, investors are just getting skittish about some of these crazy valuations the AI industry has been getting. And the question becomes, where does this stop? Is this the beginning of something where people realize, yo, these valuations are just completely unhinged, or is this a minor blip? We're going to see. But on October 8th, the Financial Times reported that OpenAI told investors its annualized revenue was approaching $50 billion, okay? That that's where we were going to be at the end of September.

Then just 10 days earlier, Axios and Reuters had to put that number, they were guessing that that number was going to be near $70 billion. We've now got this $20 billion hole in one of the most important companies in AI.

The fact that they're not even a public company, by the way, at this point, they're still having to report, getting the information to their potential investors. People are starting to realize that that is not going as well, at least for OpenAI as they thought that it was going to. And so Wall Street is moving. And the OpenAI debt supply chain, if you will, is the first thing to get hurt. We saw Oracle take a battering.

Its market valuation went down. NVIDIA fell by 2.9%, Broadcom dropped by 4.4%, Micron lost 4.8%, AMD slid 3.9%.

Now you start putting it all together. And I undersold it when I said that it was over 300 It's actually just under 400 at $370 billion gone from just five companies in a single session. Okay, that's two days after the NASDAQ and the S&P 500 closed at record highs. And that kind of volatility is something that I think that we can expect to see more and more. Now, when you look closer at what actually happened, OpenAI's actual sales didn't shrink by 20 billion. According to the Financial Times, 70 billion figure came from OpenAI's own investors trying to line it up against Enthropic. So some of this is a paper story. And if it didn't have the big knock on effect in the actual markets that it ended up having, I probably wouldn't have thought too much about it. Companies do all kinds of weird stuff on their books all the time. That's like really common. But the fact that investors are now starting to be hyper reactive to this kind of stuff is the story itself. And if you guys were paying attention to what was going on with the big potential IPO of a data center in Australia, that story has become very interesting. So at first, they were trying to IPO at $11, and it looked like it was going to be one of the largest IPOs in Australian history. Then the price started dropping, and it went down to $8. It looked like they were going to still be able to fill the IPO at $8, but then that started to wobble. And so the company ended up just deciding that they were going to pull out altogether. Now, maybe they will still IPO down the road, and maybe they'll be able to get that valuation back up to $11. Maybe, just maybe, they get it up even higher. So it's not like the damage has been locked in in some permanent way, but these are signs that investors are starting to get more skittish. And if you put that together with a story that we were talking about on Wednesday, where you've got the New York Fed knock, knock, knocking on the doors of all of these banks and saying, hey, we want to see how exposed you are to private debt. And then you remember that the private debt situation is getting more and more unhinged because after 2008, when we put all these regulations on normal banks, which kept them from doing too much crazy stuff, all of that desire for the high risk debt just slid into the shadow banking industry, which is private credit. Those guys have been loading up and loading up on that debt. And now people are starting to get nervous. As we see little misses here and there, we see people not being able to make payments on their infrastructure build out on these data center leases, whether it's they can't get the power going in the New Mexico one that hit Oracle a while back. If you remember, they took a massive hit a few weeks back because they were unable to get the power to their facility. They claimed to force majeure, which is basically like, ah, this is an act of god. There's nothing that we can do.