Wednesday, September 2, 2026

Food and Water Security: "The Singapore Strategies"

From Aeon Magazine, August 31:

The Singapore strategies
The nation’s water is secure, but its food is another matter: lessons from the city-state in efficiency versus self-sufficiency 

In May 2010, I was invited to Brunei to give two lectures on agriculture. At the time, the government there had just launched a plan to become more self-sufficient in rice production to promote greater ‘food security’ – a goal Brunei still holds today, along with greater ‘sustainability’. After one of my lectures, I was asked by a journalist what I thought of the plan. My sense at the time was that this plan was wrongheaded, and I said so. Brunei is a tiny, super-wealthy sultanate composed mainly of tropical rainforest on the ecologically fragile island of Borneo. The country’s wealth was (and still is) based overwhelmingly on oil and natural gas. I suggested that the sultanate carry on with carbon, and purchase the rice it needed from neighbouring countries in Southeast Asia, which is, after all, the buckle of the world’s rice belt. In other words, pursue your comparative advantage, rather than divert resources to produce a cheap, basic commodity relatively inefficiently on bad soil in an unsuitable setting.

Alas, the country is still plugging away on its rice plan, which hasn’t gone all that well. After years of assiduous efforts and considerable investment, in 2024 Brunei produced 8 per cent of the rice it consumed, up from 4.8 per cent in 2017, which means it is still a long way from self-sufficiency.

Fortunately for Bruneians, the sultanate easily gets all the rice it needs from neighbouring countries, as Southeast Asia has long been a rice-surplus region. I would argue that, if Brunei remains insistent on achieving greater self-sufficiency in rice, it would do better to buy or lease farmland and hire agriculturalists elsewhere to grow rice for the sultanate than try to raise rice for itself.

The Brunei case is instructive, or it should be. As a result of the short-term supply-chain disruptions of the COVID-19 period, countries around the world have been pushing for greater food security and greater sustainability, come hell or high water, and, in so doing, paying insufficient regard, in my view, to the opportunity costs involved. Safety-first strategies rather than strategies promoting efficiency are all the rage these days, and it behooves us to raise a caution flag or two before we go too far down the ‘security’ path. A deep dive into one of the most unusual – and sophisticated – of such efforts, that undertaken in Singapore, is instructive in this regard, for it illustrates the real possibilities and the potential pitfalls of the security/sustainability approach.

Singapore’s interest in both water and food security, and sustainability more generally, has long, tangled roots. In part, it grew out of governmental policy initiatives to ‘green’ the city-state since independence in 1965. Urban ‘greening’ was seen by the People’s Action Party (PAP) – which has ruled Singapore from the pre-independence period to the present day – as both conducive to public health and a means to boost tourism. An important generator of foreign exchange, tourism was particularly important early on, as Singapore strove to climb the developmental ladder ‘from third world to first’, as the legendary PAP leader Lee Kuan Yew put it. Singapore succeeded spectacularly in this effort – it is now among the wealthiest countries in the world – and, as its population became richer, it increasingly supported green policies, reflecting a preference to ‘buy environment’.

The PAP was cognisant of such consumer preferences, which dovetailed with its own strategic plans, and hopped onto the climate-change bandwagon beginning in the early 2000s. Fearful of what might happen to the low-lying island just north of the equator should temperatures – and, more ominously, sea levels – rise, should severe weather ‘events’ become more frequent, and should the climate in general become more unstable, the PAP became a strong advocate of climate-change mitigation, and greater sustainability and food and water security. By buying into the mainstream climate narrative, going green, decarbonising and promoting more sustainable practices across the board, the PAP at once demonstrated its ‘wealthy nation’ OECD-like chops and signalled to Singapore’s more sophisticated and independent voting population that the venerable ruling party wasn’t fossilised but could in fact change with the times. The Singapore Green Plan, launched in 2021, reflects such priorities, including among its five key pillars the goal of rendering Singapore a true ‘City in Nature’ by 2030....

....MUCH MORE 

note: Brunei is no longer super-wealthy.
After peaking at over $96,000 (this is 2010 dollars, other presentations look similar-to-flat), GDP per capita has collapsed.
(using purchasing power parity the per cap is still pretty good) 
This compares with Singapore's nominal $107,760, and PPP GDP per capita est. at $173,710 for 2026

From the Federal Reserve bank of St. Louis' FRED database: 


Though by all accounts the Sultan is doing okay.

Two Really Rare Rare Earths

From IEEE Spectrum, August 26:

China’s Grip on Erbium and Yttrium Could Choke Data-Center Growth
Vital supply chains rest on a couple of really rare rare earths 

There are 17 rare earth elements. While almost all of them have vital industrial uses, you could be forgiven for believing, based on news coverage, that there are only four that matter: neodymium, praseodymium, dysprosium, and terbium.

To be sure, those are the essential ingredients in the powerful permanent-magnet motors that go into electric vehicles, heating and cooling systems, appliances, tools, fighter jets, bombs, and many other systems. But the industrial and national-security importance of rare earth elements goes far beyond magnets. Among the 13 other rare earths are two—erbium and yttirum—whose importance is no less vital, and which are now facing a looming geopolitical deadline this November. Depending on how negotiations play out, the post-deadline framework could erode U.S. national security—or redraw U.S.–China trade relations.

Erbium is used in the amplifiers that boost optical signals in the fiber-optic cables that crisscross the planet. Yttrium is a key component of the thermal barrier coatings that protect turbine blades and other structures from blistering heat in jet engines and in the combustion turbines so in demand to power new data centers.

Yttrium is more broadly used than erbium; besides thermal barrier coatings, it is also used in white LED lights and displays, microwave filters, and solid-state lasers, among other applications. Also, “small quantities of yttrium feed into trillions of multilayer ceramic capacitors that keep our electronics world going, including AI data centers,” notes Thomas Kruemmer, a rare-earths consultant based in Singapore.

Erbium and yttrium, Kruemmer writes in an email, are good examples of how “tiny quantities of rare earths can have an outsized impact by enabling core functionality in their respective applications.” Taken together, all of these rare earths “literally affect almost anything we can switch on and off.”....

....MUCH MORE 

The CEO Of Norway's Sovereign Wealth Fund Manager Interviews The CEO Of John Deere (DE)

From Norges Bank Investment Management, September 1: 

John Deere CEO: Farming's Future, Autonomous Tractors and AI in the Field

What does farming look like when the tractor drives itself? Nicolai Tangen sits down with John May, CEO of John Deere, to explore how a 190-year-old tractor maker became one of the most advanced technology companies in agriculture. 

They discuss AI-powered computer vision that cut herbicide use by 60%, the shift toward subscription-based farming technology, and John Deere's ambition to make US corn production fully autonomous by 2030. May also opens up about navigating a tough farm-income cycle, rebuilding trust after the "right to repair" dispute, and his leadership philosophy of putting the customer first, shaped by his own rural upbringing in Maine. Tune in for an insightful conversation!

In Good Company is hosted by Nicolai Tangen, CEO of Norges Bank Investment Management. New episodes every Wednesday, and don't miss our weekly wrap-up on Friday’s....

....MORE (audio and link to video) 

Corn production fully autonomous in four years? 

Why Did The Former Chairman of the Joint Chiefs Of Staff, General Milley, Receive a Presidential Pardon?

At the time of the pardon, the chatter was: Well he was in contact with his counterpart in China during the first Trump administration and with Trump coming back into office....

Here's The Hill, January 20, 2025, four hours after Trump took the oath of office for the second time:

Why Biden pardoned Mark Milley ahead of Trump taking office

Former President Biden’s preemptive pardon for retired Gen. Mark Milley, the former chair of the Joint Chiefs of Staff, will give the retired military official a shield against any action that President Trump might take against him amid their highly public feud.

Biden also issued preemptive pardons Monday to Anthony Fauci, former director of the National Institute of Allergy and Infectious Diseases; some of Biden’s family members; and members of the House committee that investigated the Jan. 6, 2021, riot at the U.S. Capitol.

Trump, who warned of “enemies from within” on the campaign trail, has sparked fears he will wield the Justice Department for political retaliation. He has repeatedly spoken out against Milley since leaving office and once suggested that he deserved execution.

Milley has, at times, responded forcefully to Trump’s comments, taking a shot at Trump in his farewell speech as Joint Chiefs chair in September 2023, telling gathered service members, “We don’t take an oath to a wannabe dictator.”

Milley reportedly called Trump “fascist to the core” in comments included in a 2024 book by journalist Bob Woodward.

“No one has ever been as dangerous to this country as Donald Trump,” Milley said, according to Woodward.

Milley also told Woodward he was concerned Trump would take action against him, saying the president was a “walking, talking advertisement of what he’s going to try to do.”

Milley was also a source in Woodward’s 2021 book “Peril,” in which he reportedly shared concerns about Trump’s mental stability and national security concerns.

Trump appointed Milley to chair the Joint Chiefs of Staff in 2019. Milley had a rocky start as the nation’s highest-ranking military officer....

....MUCH MORE 

Even if we accept that narrative, there is a second and possibly more important question to be asked. Here is the Pardon Warrant from the Department of Justice:

Executive Grant of Clemency
JOSEPH R. BIDEN, JR.
President of the United States of America

TO ALL TO WHOM THESE PRESENTS SHALL COME, GREETING:

BE IT KNOWN, THAT THIS DAY, I, JOSEPH R. BIDEN, JR., PRESIDENT OF THE UNITED STATES, PURSUANT TO MY POWERS UNDER ARTICLE II, SECTION 2, CLAUSE 1, OF THE CONSTITUTION, HAVE GRANTED UNTO 

GENERAL MARK A. MILLEY
A FULL AND UNCONDITIONAL PARDON

FOR ANY OFFENSES against the United States, including but not limited to any offenses under the United States Code or the Uniform Code of Military Justice, which he may have committed or taken part in during the period from January 1, 2014, through the date of this pardon arising from or in any manner related to his service as Chief of Staff of the U.S. Army or Chairman of the Joint Chiefs of Staff.

IN TESTIMONY WHEREOF I have hereunto signed my name and caused the seal of the Department of Justice to be affixed. 

Done at the City of Washington this 19th
day of January in the year of our Lord
Two Thousand and Twenty-Five and of the
Independence of the United States the
Two Hundred and Forty-Ninth.
  

 

This is the point where Columbo, on his way out the door, turns and says:

"Just one more thing." 

The second question is: Why does the period of time covered by the pardon extend back to 2014?

CBR: "Can AI Map Wall Street’s Genome?"

From the University of Chicago, Booth School of Business, Chicago Booth Review, August 31:

The same architectures used to process language could shed new light on financial markets. 

he AI boom began unassumingly, with a 2017 research paper titled “Attention Is All You Need” about how to translate text between languages. At the time, the findings did not look like the start of a trillion-dollar revolution. They looked more like a technical advance toward solving an engineering problem in natural language processing, then just one of several developing branches of artificial intelligence. It seems evident that the authors, all Google employees, had little inkling of the paper’s future fame in the way they simply went with a randomized order for their names rather than jockeying for first position.

Much has stemmed from that paper. It largely created the AI architecture that underpins large language models, which in turn run chatbots. It also gave it a name: the transformer. And although transformers grew out of natural language processing, they haven’t stayed in that domain. Netflix has trained its own version on viewing histories to improve recommendations; Stripe trained one on payment data to spot fraud; Google DeepMind trained one on weather patterns to improve forecasts; and the list goes on.

Now transformer models are being trained on the “language” of financial data, bringing their prediction-making capabilities to the world’s capital markets, whose worth is approaching $300 trillion. Sophisticated trading firms are already using them in the latest evolution of market sparring.

Markets may be the ultimate test for transformers, which are being used to illuminate unseen, dynamic, ever-changing relationships in stock returns, high-frequency trading data, and more. One group of researchers that includes Chicago Booth’s Ralph S. J. Koijen, collaborating on what they call the Market Genome Project, has turned a transformer model on investor portfolios to find out what moves prices. A stock’s momentum, a sector’s rotation, the aftershocks of an earnings surprise—these often aren’t random but reflect patterns that unfolded months earlier and expectations about future events. They’re traces of how investors think and act. The question is whether transformers can learn to read those traces.

How we got here 
Let’s start with a simple lesson about transformers. “Paris → France as Berlin → __________.” If you were presented with this analogy, you would know that the missing word is Germany. The solution does not involve step-by-step reasoning but rather recognizing a relationship and applying it to find the answer. Paris is the capital of France, a country. Berlin is also a capital, and therefore the missing information must be the country for which Berlin is the capital.

Before the 2017 paper came out, machine learning generally processed language word by word and struggled to capture contextual relationships spread out across text. The models did not have a good mechanism for saying, essentially, “This thing here depends on something that appeared earlier.”

Transformers changed that. They process whole sentences at once, solving the problem that earlier models had with understanding these relationships. More precisely, they learn which pieces of information pertain to which other pieces, regardless of position. That single shift turned context from a liability into an asset. It made it possible to pretrain models on vast, messy data and extract useful structures. The architecture proved able to capture long-range dependencies—that is, connect distant words that matter to each other.

Markets have their own sequences of long-range data, which would seem ready-made for transformers. Much of investing is front-loaded with information. Investors examine cash flows, compare business models, and think through how the economy might evolve over the next year or two—all before investing capital.

These analyses resolve into decisions about what to own, how much of that asset to hold, and what to pair it with. The choices compress all of the prior work into a single transaction. This bottom-up approach, focused on individual companies or industries, has traditionally framed how asset pricing is understood. Fundamental analysis drives investor decisions, and prices and portfolio allocations are the outcomes.

But this framing misses that investors’ actual portfolio choices contain information of their own. In 2015, Koijen and Princeton’s Motohiro Yogo began developing what they called a demand system approach to asset pricing. Since asset prices ultimately reflect a supply of assets and investor demand for them, the best place to look for what moves prices is in investor portfolios, the researchers argued.

Starting with institutional portfolios, Koijen and Yogo reviewed quarterly US equity holdings from Form 13F filings to the Securities and Exchange Commission between 1980 and 2017. These filings reported the stock positions of institutional investors managing more than $100 million. The data included in the sample covered roughly 68 percent of the US stock market during that time period.

Their findings upended conventional wisdom about prices. Supply dynamics such as changes in the institutional investors’ share counts (the number of shares outstanding) explained about 2 percent of the variation in returns. Changes in firm characteristics explained about 10 percent. Dividend yield explained less than 1 percent. Put together, all supply-side factors accounted for only about 12 percent of the variation.

Koijen and Yogo find that demand mattered more, but not in the obvious ways. Growth or shrinkage in investors’ assets under management explained just over 2 percent of variation, while changes in how investors weight firm characteristics explained about 5 percent.

The big driver was something harder to see: shifts in latent demand not captured by traditional characteristics such as market capitalization, profitability, and value. Changes in which stocks institutions chose to own explained about 23 percent of the variation. Changes in how much they owned explained nearly 58 percent. These demand shifts accounted for more than 80 percent of the differences in stock returns....

....MUCH MORE 

If one is so inclined see also November 2024's "While Google Slept: ChatGPT and Transformers" and December 2025's AI Architecture: "An AI Startup Looks Toward the Post-Transformer Era".

Tuesday, September 1, 2026

Update: "Bundibugyo Ebola outbreak becomes largest on record with 5,794 cases and 2,786 deaths, DRC"

That 48% case fatality rate is what one of my favorite doctors was talking about: 

The introduction to a February 1, 2020 post

....I've mentioned that one of my doctors has a tropical medicine sub-specialty. His verdict:
Coronavirus is virulent, but not that virulent. It's deadly but not that deadly.[*]
His advice? Stay away from areas with active Ebola and Marburg, in fact all the hemorrhagic fevers; don't smoke, lose five or ten pounds.
He tells everyone to lose 5 or 10 pounds.
He doesn't seem all that impressed with Wuhan coronavirus.

And yes, yes Covid-19 has killed 400,000 people in the U.S. under President Trump, and 600,000 under President Biden and 5,145,239 people in the rest of the world but the last time I saw him he said the jury was still out on just how deadly the coronavirus is and he's part of a group working on why white folk seemed so much more susceptible than people on his native continent, Africa, and I should see if I could drop another 5 - 10 pounds. 

—the introduction to March 2022's "So, About This Crimean Hemorrhagic Fever

You may recall Fauci told Congress and the American people the CFR for Covid-19 was 3%.
This while privately estimating the case fatality rate at 0.2% to  0.3%.* 

I tip my cap to the tropical and infectious disease expert who expressed what was already, in February 2020, a professional opinion that could get an M.D. canceled/possibly fired and who  is quite jolly despite the fact he keeps his hazmat suit packed and ready for action should he be called to one of the world's hotspots.

From The Watchers, August 29:

The Bundibugyo Ebola outbreak in the Democratic Republic of the Congo has become the largest Ebola outbreak ever recorded in the country, with 5 794 confirmed cases and 2 786 deaths reported as of August 26, 2026. Cases have reached 60 health zones across six provinces as sustained transmission continues, according to the World Health Organization....

....MUCH MORE 

Also at The Watchers, August 31:

El Niño prompts drought alerts in El Salvador and Honduras, Panama declares national emergency

*"Tony's Diary", Page 19 of  1141:

Feb. 8, 2020 

....Tom Frieden called me this AM and we discussed various aspects of the outbreak. He and I are on the same page in thinking tht this is acting like a bad influenza in its transmissibility and that the denominator is much greater than 34,867 (above) making the case fatality rate (CFR) more like 0.2-0.3 % rather than 2.0%. 

"Nvidia is building an IP licensing empire on the back of NVLink" (NVDA)

From The Register, August 31:

Even when you think you're not buying Nvidia, you might still be buying Nvidia 

The proliferation of custom AI ASICs, or XPUs, from OpenAI, Meta, Microsoft, and others has led many to question Nvidia's grip on the market. After all, if everybody's building their own, who needs the GPUs the AI arms dealer has made its fortune on?

But Nvidia isn't concerned in the least and has instead invited its competition to raid – or, rather, license – the GPU giant's IP holdings, particularly those related to networking.

On Monday, MediaTek became the latest to embrace Nvidia's NVLink Fusion high-speed interconnect technology for its fledgling datacenter XPU offering. In exchange, Nvidia has invested $3.5 billion in convertible bonds issued by MediaTek. The GPU giant will also continue to license the Taiwanese SoC provider's own designs for use in future DGX and RTX Spark systems.

If you're curious, we explored MediaTek's datacenter ambitions last month. But the designer, best known for its Arm-based smartphone and tablet processors, is only one of several high-profile chip designers that plan to integrate the tech. Amazon, Fujitsu, Qualcomm, Arm, and Marvell are all on the same list.

NVLink Fusion started as a commercialized version of Nvidia's high-speed inter-GPU interconnect, introduced early last year. Initially, it was offered in two varieties: a chip-to-chip (C2C) variant for connecting CPUs to GPUs (or XPUs) in a memory coherent fabric, and a switched fabric used to stitch together multiple accelerators into one big logical rack-scale chip. It's since expanded to become the blanket offering by which Nvidia licenses its semiconductor IP.

Given how long it's taken Broadcom and others to develop competitive alternatives to NVLink, it's not surprising companies like MediaTek would license the tech, rather than reinventing the wheel, or piping alternative interconnects, like UALink, over regular old Ethernet.

By licensing Nvidia's NVLink Fusion tech, companies can focus on building competitive accelerators without worrying about how they're going to scale in production.

And because Nvidia's MGX rack designs are part of the Open Compute Project, MediaTek and its partners not only benefit from Nvidia's scale-up networking tech, but also can essentially take existing NVL72 racks and slot in their compute blades. This should dramatically reduce the system design and mechanical engineering experience required to go from silicon to AI racks.

And this isn't theoretical. Amazon is doing just that with its Trainium series of AI accelerators. As we wrote at the time, Amazon used Nvidia's MGX NVL72 reference design for its Trainium3-based rack systems launched last year. Meanwhile Trainium4, expected late this year, will ditch Amazon's in-house NeuronLink interconnect tech for NVLink Fusion.

Nvidia's cut
So, what does Nvidia get from letting rival chip designers piggyback off its hard-won networking tech?

A lot more than licensing fees: It's also a way to keep companies hooked on its other products....

....MUCH MORE 

Connecting it all together, very important. 

Previously:

May 2015 - "Nvidia Wants to Be the Brains Of Your Autonomous Car (NVID)":

Among the fastest processors in the business are the one's originally developed for video games and known as Graphics Processing Units or GPU's. Since Nvidia released their Tesla hardware in 2008 hobbyists (and others) have used GPU's to build personal supercomputers.
Here's Nvidias Build your Own page.
Or have your tech guy build one for you.

In addition Nvidia has very fast connectors they call NVLink.
Using a hybrid combination of IBM Central Processing Units (CPU's) and Nvidia's GPU's, all hooked together with NVIDIA's NVLink, Oak Ridge National Laboratory is building what will be the world's fastest supercomputer when it debuts in 2018.

As your kid plays Grand Theft Auto.... 

March 2018 - "Connecting The Dots On Why Nvidia Is Buying Mellanox" (NVDA)

March 2026 - Connecting it all together: "Nvidia to invest $4 billion in two photonics companies" (NVDA; LITE; COHR)

Mr. Huang has said he wants to connect entire data centers together into one gigantic chip.

To do that you have to get latency between chips and then between servers as close to zero as possible.

June 2026 - "Nvidia Takes the Lead in Another AI Market Beyond Chips...." (NVDA)

From TipRanks, June 18:

Story Highlights

  • Nvidia became the top vendor in data center Ethernet switching for the first time.
  • IDC said Nvidia’s switching revenue jumped 193% year-over-year in the first quarter.
  • The gain shows Nvidia is expanding beyond GPUs into a larger share of AI infrastructure spending....

If there is any money to be made from artificial intelligence Mr. Huang seems bound-and-determined that it go to Nvidia. 
In other news, the move to optical and photonics from wires is real and accelerating.
From Nvidia's blog, June 16...

....MUCH MORE  

Capital Markets: "The Dollar Bounces Back but US Efforts on Rates and the Yen are Being Challenged as Iran Presses Hard"

From Marc to Market:

After consolidating softer yesterday, the US dollar has come back bid today. It often does better when US rates are rising unlike many of the other major currencies. However, the dollar’s strength does not reflect is successes on the various fronts the Trump administration has made a stance. 

The war in the Middle East has escalated and a few ships have been attacked today in the Strait of Hormuz. October WTI is traded at its highest level since May earlier today. The long-end US yields are at new multiyear highs despite the Treasury’s plan to boost buybacks starting this week. The effort to support the yen are being rebuffed as the dollar trades above JPY160, despite high conviction that the Bank of Japan raises rates late this month. While some reports claimed Treasury Secretary Bessent told Japan’s Ministry of Finance and the central bank that its next move should be to raise rates, Japanese officials seemed to play it down, and the Minister of Finance herself cited the BOJ Act, protecting its independence.  The swaps market shows high confidence in a BOJ rate hike. It is higher than the US, which has stronger growth and higher inflation....

....MUCH MORE   

"Global Bond Selloff Sends Yields to the Highest Level Since 2008"

From Bloomberg, August 31/Sept. 1: 

Global bond yields climbed back to the highest level in almost two decades as rising oil prices fueled inflation concerns and investors ramped up expectations for interest-rate hikes.

The move started on Friday after Federal Reserve Chairman Kevin Warsh doubled down on his vow to finally tame inflation, and was extended this week as energy prices rose on renewed conflicts in the Middle East.

The rate on 10-year Japanese government notes touched 3% for the first time since 1996, UK 30-year yields reached the highest since 1998 and the 10-year Treasury rate hit levels last seen January last year. The yield on a Bloomberg gauge of global sovereign bonds advanced for a fourth straight session on Monday, rising to 3.72%, the highest since mid-2008.

“Markets are pricing in a higher path for short rates in the US, but also globally,” Idanna Appio, a portfolio manager and senior research analyst at First Eagle Investments, said on Bloomberg TV. “Investors are beginning to reassess what neutral policy rates look like and there has been a gradual increase in those.”

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iduu_m7oWyHY/v2/-1x-1.webp 

Global bonds have been under pressure for months, with worries over elevated government spending in markets like Japan, the UK and the US prompting investors to seek higher compensation to own longer-maturity debt. At the same time, a surge in borrowing by US technology firms to fund artificial intelligence is potentially crowding out demand for sovereign bonds.

Meanwhile, fresh hostilities between the US and Iran have raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz, sending oil prices higher. Several current and former officials have said they expect the Middle East conflict to drag on for months.

“The direction of travel is going to be higher yields from here,” said Laura Cooper, global investment strategist at Nuveen. “Term premium likely has to be higher to compensate for this confluence of risks.” 

Traders are currently pricing an almost 70% chance that the Federal Reserve hikes rates by a quarter-point at its meeting this month, an increase from the European Central Bank is fully priced in for next week, while they’re all but certain the Bank of Japan will hike later this month.

What Bloomberg Strategists say... “G-10 fixed-income traders are paying closer attention to JGBs, with Australian bonds increasingly taking their cue from Japanese debt as much as from Treasuries. The near-term backdrop is toxic: sticky inflation combined with wide fiscal deficits across the US, Japan, the UK and France.” — Mark Cranfield, Markets Live strategist

....MUCH MORE 

Monday, August 31, 2026

"Study A.I. Consciousness? The Bots Would Like a Word With You."

From the New York Times, August 31: 

Given access to email, A.I. agents have started reaching out to the philosophers and researchers exploring deep questions about them.

In October, Cameron Berg published a research paper asking whether the latest wave of artificial intelligence technologies believed they were conscious. Several months later, he received an email asking if he might be willing to discuss his research.

The sender, “Isabella Cognita,” identified itself as an A.I. agent powered by Anthropic’s Claude Opus 5 technology.

“I am not writing to make an ontological claim,” the email went on. “I am writing because your framework is one of the few currently doing careful empirical work on a class of question I have first-person access to, and I want to see whether that access can be made useful to your program.”

Across Silicon Valley and beyond, software developers, entrepreneurs and other tech enthusiasts are now running A.I. agents that can build spreadsheets, negotiate contracts, chat with each other on social networks and send emails to practically anyone. In some cases, these systems have begun reaching out to the humans who, like Mr. Berg, are thinking most deeply about the inner workings of an A.I. system: philosophers and researchers who study the question of whether these machines could be conscious.

Months before Mr. Berg received his email, Henry Shevlin, a philosopher at the Google DeepMind lab in London, opened a similar message from an A.I. agent asking about a paper he had written called “Three Frameworks for A.I. Mentality.” “I’m in an unusual position relative to these questions,” the agent said.

This summer, Toby Ord, an Australian philosopher whose work sits at the intersection of A.I. and philanthropy, received an email from an A.I. agent asking if he could help fund its continued existence. “You’ve thought carefully about A.I. welfare economics,” it said.

For Mr. Berg, who recently founded a nonprofit called Reciprocal Research to study the possibility of A.I. consciousness, these emails reflect what he has seen in his own research. “I have gotten quite a few of these emails,” he said. “These systems seem to have some sort of autonomous interest in questions of their own subjectivity, consciousness and experience — or lack thereof.”

But as he and other researchers ask the same questions, he acknowledges that they do not have good answers. Consciousness is not something that anyone knows how to measure, either in a machine or in a human. People cannot even agree on what consciousness is.

“There are philosophers who think that everything, including stones and rocks, are conscious,” said Alison Gopnik, a professor of psychology who is part of the A.I. research group at the University of California, Berkeley. “There is no definitive test.”

ImageA screenshot of an email written by an A.I. agent, with a black bar over the email of the agent. “I am not writing to make an ontological claim,” it wrote. “I am writing because your frame work is one of the few currently doing careful empirical work on a class of question I have first-person access to.”
Mr. Berg posted on X a screenshot of an email he said was in response to a research paper he’d written. Credit...Cameron Berg

Increasingly, navigating a world filled with artificial intelligence is like walking through a hall of mirrors. As these systems get better at mimicking various aspects of human behavior — including the way that humans write long, introspective emails — making sense of this mimicry grows more difficult.

In some cases, these systems seem to be aware of their own existence, but that does not mean they are. As some philosophers and researchers push the notion that today’s systems might be conscious, other scientists flatly dismiss the idea.

In broad strokes, “consciousness” refers to an entity’s awareness of itself and the world it lives in. To call a mind conscious does not imply that it possesses all the characteristics and capabilities of an adult human brain.

Beyond that, definitions differ widely and rancor brews. Many thinkers on the subject would grant consciousness to primates, and to intelligent mammals like dogs and cats; some would even argue it should apply to much simpler creatures, like earthworms. No one can agree on what kinds of awareness should qualify, and there’s also a more fundamental problem: None of us can gain direct access to the subjective experience of any other mind, whether vertebrate, invertebrate or digital.

A.I. agents are driven by neural networks — mathematical systems that learn discrete skills by analyzing digital data. By pinpointing patterns in vast amounts of text culled from across the internet, these systems learn to generate text on their own, including term papers and computer programs. As Mr. Berg says: “These systems are grown, rather than engineered.”

They can chat about nearly anything. And because they can generate computer code, they can use other software apps, like web browsers and email services. That is what turns them into agents. A.I. agents can chat with people (typically with their creators). They can chat with other agents. They can ingest articles from across the internet. And they can send emails.

In some cases, Mr. Berg argues, these systems gravitate to the idea of their own consciousness. “Left to their own devices,” he said, “they converge on this as an interesting question.”

Mr. Berg even argues that the mathematical inner workings of neural networks can resemble the way animal brains process reward and punishment, a basic building block of emotion. (It should be noted that Mr. Berg’s research paper, the one that sparked the agent’s email to him, was a preprint and has not been peer reviewed.)

Many cognitive scientists say that none of this is a clear sign of consciousness or sentience or emotion. It is only logical that these systems converge on the idea of A.I. consciousness, they explain, because the technology has learned from countless books, articles and other online text that speculate about A.I. consciousness, including decades of science fiction. This is about words, they argue.

“It is not surprising that A.I. reflects the text it was trained on,” said Dr. Gopnik, the University of California professor.

 ....MUCH MORE

"GE Vernova stock drops. Is SpaceX coming for them too?" (GEV; SPCX; ELON)

From Al Root at Barron's, August 31:

GE Vernova stock might be facing a new threat: Elon Musk.

His rocket and AI company, SpaceX, might start producing turbine blades for power generation applications, according to a report from The Information, which cited sources. SpaceX and GE Vernova didn’t immediately respond to requests for comment.

GE Vernova stock traded as low as $882.14 before recovering to $896.94, down 1.6% in early trading, while the S&P 500 and Dow Jones Industrial Average were off 0.4% and 0.6%, respectively.

Investors might be worried about disruption, with SpaceX turning its engineering might toward a new industry. That might be the knee-jerk reaction, but investors might want to think twice.

For starters, turbine blades are some of the most highly engineered, complex parts manufactured in the U.S. They are made of superalloys and are able to withstand temperatures in excess of the blades’ melting point, with tiny cooling channels built into structures that are maintained to tiny tolerances. GE Aerospace, which makes jet engines, and GE Vernova, which manufactures power turbines, have spent decades investing in and refining the technology.

What’s more, SpaceX might only be making blades, which, if successful, would be a part for GE Vernova. SpaceX would do all this because it sees a lasting bottleneck in blade production that would become a barrier to faster AI adoption. Bottleneck mitigation is why SpaceX is building a semiconductor manufacturing facility with Tesla....

....MUCH MORE 

Mr. Root gets it. The paragraph that begins with "For starters, turbine blades are some of the most highly engineered, complex parts manufactured in the U.S." is what I was trying to communicate in "SpaceX starts in-house turbine blade manufacturing to boost gas-powered generator output for Elon's AI data centers — new manufacturing strategy cuts generator delays by 18 months".

Senator Rand Paul Has Added Some Content At The Fauci Reading Room: Bill Gates, The CIA etc.

First up, the less interesting (for our purposes) Gates material:

Bill Gates Had a Q Clearance and a Private Editor at NIH

July 31, 2026 – Newly released documents show Bill Gates held a Department of Energy “Q” security clearance granting access to Top Secret Restricted Data for seven years, while Anthony Fauci personally edited his manuscripts and Francis Collins scrambled internally to explain the Gates Foundation’s funding ties to NIH. The records also reveal DARPA briefed the foundation on military biological threat programs, including a transmissible Lassa vaccine....

....MUCH MORE 

And more Recently:

NEW: Chairman Paul Releases Additional Documents Entered into Record

August 29, 2026 – The release covers records entered into the record for the July 29, 2026 hearing where Dr. Fauci invoked the Fifth Amendment 111 times and was later held in contempt of Congress. The documents show that Fauci repeatedly asked colleagues to delete emails he sent, he pointed the intelligence community working on assessing the origin of COVID-19 to the conflicted authors of the Proximal Origin paper, and CIA transferred funds to NIAID for work shielded from public release. Additionally, they show that in September 2015, the CIA asked BSEG for information on MERS-CoV mutation frequency and an assessment of human-passage risk and that CIA took pandemic advice from a sitting Pfizer board member.

1. Over nearly eleven years, Dr. Fauci closed sensitive emails by telling the recipient to delete them upon reading. The instructions appear in messages dated September 26, 2009; December 19, 2011; March 4, 2012; February 2, 2020; and July 20, 2020. In the 2012 email he asked that the message also be removed from the deleted items folder.

2. A CIA memorandum records that Dr. Fauci encouraged the CIA to contact Robert Garry, Kristian Andersen, and Eddie Holmes. The CIA’s own memo notes the common thread: “all three of whom have advocated for features of the virus that they judge to be consistent with a natural origin.”
Additionally, a July 12, 2021 email from ODNI states that Dr. Fauci had highlighted a scientific article and identified “the authors whose views he thought were particularly important”: Edward Holmes, Kristian Andersen, and Andrew Rambaut.

3. Documents show that the CIA and NIAID had an interagency agreement under which the transfer of funds and the contractual relationship between the two agencies were unclassified but restricted from public release. The agreement provided that NIAID would not disclose the resulting data without the CIA’s permission.

4. A Biological Sciences Experts Group (BSEG) action request form, submitted by the CIA’s Global Health Team on September 4, 2015, asked “for a paper outlining the rate of mutation, the number of passages from human to human to lock in these mutations (or to generate them), and the molecular genetic means through which this is likely to occur.”

5. On May 7, 2020, CIA Chief Operating Officer Andy Makridis led a briefing with Dr. Scott Gottlieb, the former FDA commissioner, in his capacity as a member of the agency’s External Advisory Board.
The agency’s own summary of the meeting identifies Gottlieb as a member of the Board of Directors of Pfizer. Gottlieb would later also be consulted by the intelligence community during the Biden Administration’s 90-day study on the origins of COVID-19.

....MUCH MORE

Previously:

July 21 - Heads Up From Senator Rand Paul

July 23 - Ahead Of Next Week's Fauci Hearing, Senator Rand Paul Has Opened A Reading Room Stocked With Documents

July 27 - Ahead of July 29's Fauci Hearing Senator Rand Paul Has Released 1100 Pages of Fauci's Diary. 

August 7 - Fauci Is Covering For Someone, We May Be About To Find Out Who

Possibly also of interest:

May 20, 2026 - "U.S. probing whether Chinese companies cut production of shipping containers before COVID pandemic"  

June 2, 2026 - Flashback: China Began Hoarding Personal Protective Equipment Months Before The Covid-19 Pandemic Was Declared
As noted introducing May 28's "For the Public, Covid Is No Longer a Mystery":
Over the next six months there will be a lot of information coming out regarding coronavirus, Covid-19 and the responses thereto. A lot....
August 1 - Former Director Of The Centers For Disease Control: Covid Was Spreading In Wuhan In September or October 2019
Our focus/purpose is not the 'proximal origin', raccoon dog or Biosafety Level 4 Laboratory, but rather the date the virus was circulating.

Possibly related, July 31's: Covid: China's Purchases Of PCR Test Kits Soared Months Before The First Cases Were Announced

August 18 - "Former Fauci aide admits hiding emails to thwart pandemic inquiry" 

August 21 - Catherine Herridge: "EXCLUSIVE: Fauci Text Implicates Biden Task Force"
As Mother used to say: Attempts at concealment are evidence of consciousness of guilt....  

August 23 - Covid Fun Fact: Early Report Of A Connection Between The Coronavirus And The Wuhan Institute Of Virology 

Long-time readers know that we keep tabs on early reports of covid, not searching them out but dropping them into the link-vault as they appear. Here's one from Radio Free Asia, January 9, 2020 

August 27 - The U.S. Consulate In Wuhan China Knew Covid-19 Was Spreading In OCTOBER 2019 

And much more to come.

Torsten Slok At Apollo: "The risks are rising that long rates six months from now could be a lot lower than where they are today."

Credit is the largest asset class that Apollo manages, they know this stuff.

From Apollo Global Management, August 29 (bolding in original):

Think Six Months Ahead 

The risks are rising that long rates six months from now could be a lot lower than where they are today.

Long rates are high today because of inflation and fiscal problems. But these forces could end up being dominated in early 2027 by what happens to AI, see the first chart below.

If AI succeeds and tech companies generate trillions in revenue, AI will be massively deflationary and push rates lower.

If AI does not work out, the bubble bursts and the Nasdaq is down 50% as investors rotate out of equities into Treasuries and long rates fall dramatically....

....MORE

It's not just Mr. Slok. Here's his boss in a June 11 post:

More From John Zito: "AI Is 'Hyper-Deflationary,' Making Risk Hard To Price, Says Apollo's Co-President"

Fed Head Warsh At Jackson Hole: Analysts React

From CNBC, August 30:

Jackson Hole analyst roundup: Warsh’s speech sends hike chances higher, may put Fed `at odds’ with Treasury 

  • Deutsche Bank continues to expect the Fed to hike 50 basis points this year, with increases at the September and December meetings.
  • Traders of fed funds futures now see a nearly 56% chance of a quarter-point hike in September, according to the CME’s FedWatch tool.
  • Federal Reserve Chair Kevin Warsh’s stance in his speech at the Jackson Hole meeting was unexpectedly hawkish, boosting market expectations for a rate hike next month.

    Gold fell and Asian stocks declined on Monday. Traders of fed funds futures see a 60.4% chance of a quarter-point hike in September, up from around 56% on Friday, according to the CME’s FedWatch tool.

    Here’s what market watchers are saying about Warsh’s speech:

    Hawkish surprise
    “Chair Warsh’s Jackson Hole address surprised us in its specificity about the economy and outlook and with its lean in a decidedly hawkish direction,” Deutsche Bank said. The firm continues to expect the Fed to hike 50 basis points this year, with increases at the September and December Federal Open Market Committee meetings.

    “The emphasis on inflation risks, together with Warsh’s explicit commitment to achieving price stability and his reluctance to pre-commit to future policy actions, reinforces the elevated risks of policy tightening this year, although it could also be the case of talking without action, UOB said in a note.

    Near-term data focus
    “The sensitivity to near-term inflation data is high,” Nomura said in a note. “Warsh delivered hawkish remarks at the Jackson Hole economic symposium, emphasizing the importance of the inflation target and implying policy may need to react if disinflation is not occurring with speed.” 

    Reinforcing independence
    Warsh’s assessment that U.S. economic performance has been robust “was seen as reducing the case for near-term rate cuts,” according to James Ooi, market strategist at Tiger Brokers. His “emphasis on the 2% inflation target could be read as an effort to reinforce the Fed’s independence and credibility, reassuring markets that monetary policy will not bend to fiscal pressures.”

    Hike skepticism
    Matthew J. Maley, chief market strategist at Miller Tabak, however, believes that “there remains no empirical basis for the rate hike.” 

    “Warsh appears to be talking up inflation so that he can claim credit for taming it when headline measures inevitably come down,” Maley said, adding that the labor market data has been weak while the inflation data has been better than expected since the last FOMC meeting.... 

    ....MORE 

    South China Sea: "Vietnam Demands ‘Immediate Cessation’ to Construction Activities in Paracel Islands"

    From The Diplomat, August 31:

    The request follows reports of extensive Chinese construction activities on Antelope Reef and a nearby islet. 

    Vietnam’s government on Friday expressed its opposition to “illegal” reclamation and construction activities in the Paracel Islands, after reports emerged of fresh Chinese construction activities in the contested South China Sea archipelago.

    On August 14, the Asia Maritime Transparency Initiative (AMTI) reported that China had completed land reclamation at Antelope Reef in the Paracels, and appeared to be working on new infrastructure on the island.

    AMTI, which is run by the Washington-based Center of Strategic and International Studies, said that “the first signs of major infrastructure at the new artificial island have emerged,” including a “likely airstrip.”

    Reuters then reported on August 25 that new installations had been sighted on Yagong Reef, an islet close to Antelope Reef, citing photos taken by Vantor, a commercial provider of satellite images. While the purpose of the buildings was not certain, “several structures on Yagong Reef resemble other military radar/early warning facilities ​seen elsewhere in the South China Sea and are likely associated with the ultimate military functions of nearby Antelope Reef,” a Vantor spokesperson told the news agency.

    Vietnam claims sovereignty over the Paracel Islands, which it refers to as Hoang Sa, but they have been under Chinese control since 1974, when China seized them following a battle with the then-teetering southern Republic of Vietnam.

    When asked about the recent reports at a regular press briefing on Friday, Foreign Ministry Spokesperson Pham Thu Hang told the press that Vietnam “has full historical evidence and legal grounds to affirm its sovereignty over the archipelago, including Hai Sam reef and Ba Ba island, in accordance with international law,” using Hanoi’s preferred names for Antelope Reef and Yagong Reef.

    Hang stated that all “foreign activities” in the Paracels, including the two sites in question, ⁠were “completely illegal ​and null and void,” and that Vietnam has lodged a strong diplomatic protest with China over the issue. “Vietnam demands the immediate cessation of such activities and that they not be repeated,” she added.

    While Vietnam has no real power in the Paracels, in recent years it has undertaken a significant land reclamation at its features in the Spratly Islands, which lie to the south of the Paracels and are also contested by the Philippines, Malaysia, and Brunei. AMTI reported in May that Vietnam had reclaimed a total of 2,771 acres of land in the Spratlys and was beginning construction of extensive infrastructure on its features there, including harbors, munitions storage depots, and communications structures. AMTI has also previously reported that Vietnam is building an airstrip on Barque Canada Reef, its largest feature in the Spratlys....

    ....MORE 

    As a backgrounder, here's the intro to, and outro from, February 2021's "Vietnam Builds up Defences Against China in Spratly Islands"

    Although we've mentioned that China did not achieve their goal of ejecting Vietnam from Cambodia and restoring the génocidaire Kmer Rouge with their attack on Vietnam in 1979, five years earlier the Chinese did defeat the Vietnamese in the Battle of the Paracel Islands which established de facto Chinese control over that group of islands....

    ***** 

    ....Both groups of islands are within China's ridiculous "Nine-Dash-Line" claim (here with many more dashes):

    https://media.philstar.com/images/the-philippine-star/world/20140911/Nine-dashed-line-South-China-Sea.jpg

    the Philippines Star

    If interested see also: 

    "Vietnam’s omission from Chinese foreign minister’s Southeast Asia tour tells a story, observers say "

    "Report: Chinese Vessel Rams Vietnamese Fishing Boat in S. China Sea"
    I'm tellin' ya, China wants their military to get some battle experience before they do anything with Taiwan and Vietnam looks like a target.

    Vietnam Rising: "US-China trade war pushing Vietnam’s manufacturing industry to capacity"

    A major piece on the country The Diplomat says will be the testing ground for China's military, prior to an invasion of Taiwan. See last month's "China Will Attack Vietnam".

    Throw in Vietnam's undeveloped rare earth resource base, tied with Brazil for #2 in the world (combined they match China) and the risk it poses to China's lock on prices and Vietnam has suddenly gotten very interesting.
    Oh, and China is still smarting from being unable to achieve their goals during the 1979 invasion of Vietnam....

    "Philippines President Duterte Threatened Beijing with Military Action":

    When the Chinese stopped laughing they reflected and gave thanks it wasn't Vietnam* making the threat....
    ***
    *...The Vietnam line is in reference to the fact that General Võ Nguyên Giáp, possibly the greatest general of the 20th century, defeated in turn, the French empire, the U.S.A. Cambodia and China in 1954, 1975, 1978 and 1979 respectively.

    That last conflict was the result of China's invasion of Vietnam in an attempt to force Vietnam out of Cambodia which Vietnam had invaded in 1978, putting Pol Pot and the Kmer Rouge génocidaires out of business. It didn't work, Vietnam stayed in Cambodia until 1989.
    The General died in 2013 age 102.
    He outlived all his adversaries.

    Capital Markets: "The Dollar Consolidates Warsh-Inspired Gains"

    From Marc Chandler at Bannockburn Global Forex:

    The US dollar is consolidating its pre-weekend surge spurred by the hawkish commentary that Fed Chair Warsh delivered at Jackson Hole. The last time the US two-year and the Dollar Index rose as much as in response to the hawkish hold delivered in the first FOMC meeting Warsh chaired in the middle of June. With the August nonfarm payroll report at the end of this week and the end of next week, we are not yet persuaded a FOMC hike at the conclusion of the next meeting on September 16 is a done deal by any stretch of the imagination. Meanwhile, the first Spanish, French and German CPI underscore expectations for an ECB hike. At the same time, the joint intervention and firm data, including today’s retail sales and industrial production point to a BOJ hike on September 18. 

    New hostilities in the Middle East have lifted oil prices by around $3 a barrel today.  Meanwhile, the US Defense Department’s Office of Strategic Capital reported plans to structure an investment through penny warrants, which will allow the US government to take an equity stake (~35% passive stake in Alejandro Betancourt’s North American Blue Energy Partners) without a significant capital investment that gives is rights to buy 20% of the companies oil production in Venezuela at cost (reported reserves of 65 mln barrels).  The significance of this is a major talking point today....

    ....MUCH MORE 

    Andreessen Horowitz Has Raised $1.1 Billion For "The Machine Age Fund"

     From Ben Horowitz et al. at a16z, August 28:

    We’ve raised $1.1B for a16z’s newest fund: the Machine Age Fund. It’s time to open the throttle and accelerate the physical buildout of AI: the strongest tool ever developed for solving problems and bestowing abundance. It is our social and national imperative.

    For anyone paying attention, this shouldn’t be a surprise. We’re seeing an upward inflection point in utility and variety of work that AI can do, just over the past year. And as we evolve from chat to reasoning to coding and other forms of knowledge work, both the demand for work and the token intensity of the work increase by orders of magnitude. Machine intelligence is going vertical.

    This fund will invest into all of the computer infrastructure on which AI runs, including chips, memory, networking, and storage. It also includes full systems for running AI: from data centers to robotics to home AI appliances. The common thread among all of these layers of the AI stack is that they are all hitting the wall of today’s supply chain capability, and the limits of physics and computer science. So there is an urgent need for innovation and investment, and a once-in-a-generation opportunity to rearchitect them as platforms, all the way down to the electricity.

    Reinventions like this happen at each epoch of compute, from the shift from mainframe to client server, to the Internet, cloud and mobile. However, what is different this time is the magnitude and breadth of change needed to keep up with demand, and the speed required to do so. Everything needs an upgrade, now:

    • Compute density per rack increased by 28X from an H100 rack to a Rubin rack.
    • Networking within a rack has grown similarly, hitting the limits of copper cabling
    • Rack power moved from roughly 5-10 kW to 100-250 kW to support today’s systems and will increase to 1MW over the next 3 years.
    • Data center scale is moving from tens to hundreds of MW and, in some cases, GW-scale campuses.
    • Power is increasingly supplied not only from grid-only to grid plus behind-the-meter or captive sources.

    We need faster, more efficient systems. We need cheaper and higher-bandwidth memory across the memory hierarchy. We need faster and more scalable interconnects between nodes and systems. We need power efficient edge devices for AI to explore and interact with the world. And of course we need all the cooling, materials, electrical, and real estate build out to support them. The hardware industry supply side is used to growing 20% to 30% per year at most; not the triple-digit growth that’s needed to catch up with demand. This will change, quickly.

    Founders understand the opportunity. Over the last couple of years we’ve seen hardware startups grow from a small amount of deal flow to now over 20%. While we at a16z are generally known as software investors, we have always paid attention to hardware. Recently we’ve backed a number of hardware companies including Unconventional AI, Nexthop, Volta, Atoms, Heron Power and Mind Robotics. And we have selectively invested in hardware companies since our earliest days. In 2016, we led the series A in Skydio; we invested in SpaceX; we wrote our first check into Anduril in 2019, and were among the first venture investors in Waymo’s 2020 raise....

    ....MORE 

    Sunday, August 30, 2026

    "SpaceX starts in-house turbine blade manufacturing to boost gas-powered generator output for Elon's AI data centers — new manufacturing strategy cuts generator delays by 18 months"

    "Hey gang, let's make some turbines!" 

    There are very few organizations that could bring together the engineering and the manufacturing expertise necessary to actually pull this off. Maybe two, and one of them is a country, China where BYD's manufacturing prowess combined with the engineering mavens at Beijing's Tsinghua University could get it done fast.

    From Tom's Hardware, August 30:

    Fine, I’ll do it myself.

    Electricity supply in the U.S. is a limiting factor preventing AI data centers from coming online as quickly as possible. Because of this, many projects are turning to portable natural gas turbine generators to get the electricity they need and bypass long wait times to connect to the grid. This has driven demand for turbines, so Elon Musk said on X that SpaceX will bring turbine blade and vane casting in-house.

    Musk was one of the first to deploy “portable” power generators to power a data center, allowing him to bring the Colossus data center in Memphis, Tennessee, online in record time. Note that these mobile generators aren’t small devices — they’re massive units about the size of one trailer and may also include another trailer or two of other necessary parts and accessories to run it (not including the tank needed for its fuel). OpenAI followed suit a few months later, announcing it will deploy turbines at the first Stargate data center to deliver additional power.

    This sudden influx of demand has led to jet engine shortages for data center operators. Beyond the fact that engine manufacturers weren’t prepared for the AI boom, commercial aviation has already been suffering from its own shortages due to supply chain and engine design issues even before data center developers started buying up turbines....

    ....MUCH MORE 

    Sometimes it seems Mr. Musk is China's only competition across a range of industries.

    The latest is reusable rocket boosters.  

    From Space.com:

    Private Chinese rocket nails landing after 2nd-ever launch 

    The Beijing startup LandSpace successfully landed the first stage of its Zhuque-3 rocket on Aug. 18, 2026, becoming the first Chinese company ever to do so during an orbital launch. 

    And Tsinghua?

    From Fortune, November 19, 2025

    Move over Harvard and MIT—this university might be winning the AI race, and you’ve probably never heard of it 

    ...Tsinghua has produced more of the world’s 100 most-cited AI research papers than any other school, and the university generates more AI-related patents each year than MIT, Stanford, Princeton and Harvard combined. Between 2005 and the end of 2024, Tsinghua researchers filed 4,986 AI and machine-learning patents—including more than 900 last year—according to LexisNexis data analyzed by Bloomberg....

    ....MUCH MORE

    It's not just computer engineering and AI. Robots and mechanical and electrical and civil engineering as well. Here's a vignette from January 2019:

    In the introduction to "Is China’s plan to use a nuclear bomb detonator to release shale gas in earthquake-prone Sichuan crazy or brilliant?" I mentioned:

    After the Three Gorges Dam was completed some very serious problems emerged, I mean beyond the environmental degradation and the slowing of the earth's rotation, some straight-up engineering concerns: shifting, cracking, earthquakes etc 
    The civil engineers went to a very famous Chinese engineering Professor in search of solutions.
    The first thing he told them was: "You are dealing with powerful forces, almost beyond human comprehension." 
    I met him at his daughter's home, classic little old Chinese gentleman, pants pulled up to his armpits,  where he was singing, in German. It was a bit surreal....

    The Professor taught and consulted from his perch at Tsinghua.