Business
How A Million Miles Of Undersea Cables Power The Internet — And Now AI. It’s interesting to learn how cables are made and installed under the sea to facilitate global communication.
Apple’s long game will result in a safe, secure, and ethical AI ecosystem. It is often said that Apple is behind in AI and does not innovate. The former is shaky at best as there are no clear AI products that are widely useful to consumers AND threaten Apple’s business. Just look at the stock chart and it’s clear what the market thinks whether Apple is threatened. The claim that Apple does not innovate, just because it doesn’t claim fictitious ambitions or have a chatbot, is not true. I suspect that by 2027, Apple will be in a stronger position and have an AI tailwind.
He’s Been Right About AI for 40 Years. Now He Thinks Everyone Is Wrong. Well, not everyone. I don’t think LLMs are the future of intelligence and will be a game changer. Are they useful? Yes. Are they overhyped? Tremendously. The fact that Yann LeCun, a highly respected research who has spent years on the topic, dismisses the hype of LLMs is a strong indicator that we are living in a bubble. The key question is: when will the bubble pop and what will that mean for the rest of us?
Visa and Mastercard Near Deal With Merchants That Would Change Rewards Landscape. “Visa and Mastercard are nearing a settlement with merchants that aims to end a 20-year-old legal dispute by lowering fees stores pay and giving them more power to reject certain credit cards, according to people familiar with the matter. Under terms being discussed, Visa and Mastercard would lower credit-card interchange fees, which are often between 2% and 2.5%, by an average of around a tenth of a percentage point over several years, the people said. They would also loosen rules that require merchants that accept one of a network’s credit cards to accept all of them. If an agreement is finalized, consumers could see big changes at the register. Merchants that accept one kind of Visa credit card wouldn’t have to accept all Visa credit cards, for example. Under the current talks, credit-card acceptance would be divided into several categories including rewards credit cards, credit cards with no rewards programs, and commercial cards, the people familiar with the matter said.” As the credit card industry is moving up to the premium market with high annual fees and more benefits, this development will throw a giant curveball into their planning. Visa and Mastercard won’t have a material impact on their revenue. Issuers will. The card acceptance issue is interesting. Rewards cards are more attractive than no-rewards cards. However, issuers don’t have to bear rewards expenses either with the latter. So, if merchants don’t accept certain rewards cards, issuers may not be severely impacted. We’ll see!
Other Stuff I Find Interesting
Alaska’s New Mining Rush Chases Something More Coveted Than Gold. “Until recently, antimony, which is often found in gold mines, was treated as detritus by gold miners. That is squeezing defense companies, which use antimony to harden bullets and strengthen armor-penetrating projectiles. Antimony prices have quadrupled from two years ago and supplies are now scarce, just as defense companies need to replenish stockpiles of armaments exhausted by the conflicts in Gaza and Ukraine. Around 60% of the world’s antimony is mined in China, with most of the rest coming from Russia, Tajikistan and Myanmar.“
In America’s Suburbs, Frustrated Middle-Class Voters Are Up for Grabs. Democrats’ latest wins came from inroads in the middle-class in suburbs. High-income voters in the big metropolitans tend to vote for Democrats while rural areas support Republicans. To win back the White House and Congress, Democrats need to win more middle-class in the suburbs, especially those living a bit away from big centers. Right now, voters are not happy with inflation. I feel that even though it is not as high as it used to be, inflation has cooled. Hence, tariffs are such an own goal by the Trump administration. Without the tariffs, they likely would have got more popular.
Warren Buffett’s last letter before stepping down. I feel tremendously lucky that, as a Vietnamese who did not come from money, I have been living in Omaha, Nebraska and had the privilege to listen to Charlie and Warren speak a few times. They are legendary investors, but also wise teachers. Warren delivered again with his letter. “Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior.”
Dwarkesh and Dylan Patel had an interesting interview with Satya Nadella, CEO of Microsoft, who offered intriguing takes on where the AI industry is going and the business models of the key players (Azure and other hyperscalers, neoclouds).
Stats
According to Bank of America, US beer industry volume declined -7.0% in the 4 weeks to November 1st
The hidden costs of owning a home now nears $16,000 per year nationwide
American Express has twice as many upgrades as downgrades on a normal year without a product refresh.
Apple Segment Revenue vs Other Company Total Revenues. Source: awealthofcomonsense
Minh Quang Duong 
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